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Created with Fabric.js 1.4.5 Due to the flat fee arrangement, advisors onlybenefit from maintaining or growing client assets. Some advisors will pick up the cost of trading so as to ensure that every investment decision is made to best serve the client's portfolio, without restricting allocation decisions because of potentially high trading costs. Investment professionals thatare legally required to act asa to each and everyclient. Retail Brokers Fee-Only Advisors Larger Firms = More Resources than Do-It-Yourself Approach In an effort to avert management fees,individual investors often attempt to navigate markets on their own. Do-It-Yourself $ ? The Management Decision Advisory Accounts -Broker offers financialplanning and advice in exchange fora single fee. Broker is a fiduciary. Investment selection is limited to thosesecurities approved for use by the firm. Agile Following the Herd Overly Confident/Investment Cycle 2 Types of Accounts: Unbiased Independent As prices rise and fall, investors' tendenciesare to follow the herd. The recent housing bubble illustrates the severity of this risk. Advisors are independently able to recommend investment products without the pressures andoversight of a large firm and commissions-basedcompensation structures. OR Flat % Fee on Assets Managed + Trading Costs Wrap % Fee on Assets Managed Costs: Trading Costs + Commissions from Products OR Flat Fee + Trading Costs Having access to a full arsenal of investment vehicles, Fee-Only Advisors are able to be swiftand agile in the implementation of their strategies.Unlike brokers, they are not restricted by the list of approved securities offered by their firm. Agents employed by a firm to provide you with investment products or services. Source: Dalbar Inc. fiduciary The Average% fee chargedfor advisory services on account sizes $1m-$2m -4.3 Key Risks: When it comes to managing your investments, three distinctchoices are available....When it comes to your financial future,it pays to choose wisely. Equity Investor vs. Barclay's AggregateBond Index Bond Investor 2013 Center for Private Wealth Management Brokerage Accounts -Broker makes commissions on trades,is higher compensated for some productsover others, and is restricted to the securitiesthat are approved by the firm. 1990-2010 Average Investor Performance (%) 1.17 Maximum Opportunity -5.6 vs. S&P 500 Cautious Scared Elated Optimistic Optimistic Poor Discipline Maximum Risk of Loss Source: Pricemetrix
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