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What to Know About Registered Investment Advisors in Philadelphia

A Registered Investment Advisor (RIA) in Philadelphia is a person or firm that advises individuals on investments and manages their portfolio. One of the best aspects about Registered Investment Advisors is that they have a fiduciary responsibility to all of their clients. This means that they must legally and ethically always act in their clients best interests. Registered Investment Advisors are regulated and they must be registered with the Securities and Exchange Commission (SEC) or state securities administrators. 

It’s important to understand how registered investment advisors in Philadelphia make their money. Some RIAs charge clients a percentage of their assets under management, but others charge either an hourly, monthly or even a flat fee for their advice. Registered Investment Advisors in D.C. usually earn their revenue through a management fee consisting of a percentage of assets managed for a client. Fees can fluctuate, but the industry average is around 1% of Assets Under Management (AUM) paid either quarterly or monthly. Sometimes, when clients may not have much accumulated assets if they’re young or just starting out, a monthly fee may serve better while still getting the unbiased help and advice of a Fiduciary Advisor.

 

What does it mean for Registered Investment Advisors to be fiduciaries in Philadelphia?

  1. Fiduciary financial advisors do their research - they must make sure their recommendations are based on accurate information. 
  2. Fiduciaries are transparent - being upfront about the cost of all fees and any commissions.
  3. Fiduciaries must avoid conflicts of interest - must disclose when they are compensated for making recommendations. 

 

To learn more about Registered Investment Advisors in Philadelphia check out InvestEd’s  guide to Registered Investment Advisors (RIAs) here.