Registered Investment Advisor

Registered Investment Advisors are often referred to as RIAs. Registered Investment Advisors are financial professional who are registered either with the Securities and Exchange Commission (SEC) or the state in which their business is located. RIAs with more than $25 million in client assets register with the SEC, and those with less than $25 million are registered with their state. Registered Investment Advisors are subject to a fiduciary standard. This fiduciary role means that RIAs are legally obligated to represent their clients’ best interests. RIAs provide investment advice through something called an advisory account. Advisory accounts and the fiduciary standard make the role and responsibilities of a RIA very different from that of brokers who work through brokerage accounts and are subject to suitability standards. RIAs must also provide clients with a Form ADV which describes how they do business, reveals any potential conflicts of interest, and clearly describes how they are compensated. RIAs charge a fee that is a percentage of assets rather than a commission for managing investments. Fees can range from less than 1 percent to more than 2 percent of assets under management. RIAs may also offer investment-related financial planning services.

How does one typically purchase annuity products?