October 30, 2024
Not all financial advisors are created equal. Allworth financial advisor Lynda Tu shares why it's absolutely critical to look for a specific type of professional.
When it comes to your financial future, choosing the right advisor is one of the most critical decisions you'll make. If you’re nearing retirement, or simply looking to take charge of your financial life, the kind of advisor you work with can make all the difference. As a strong advocate for transparency, client-first approaches, and fiduciary responsibility, I believe working with an independent, fee-based financial advisor provides distinct benefits that align with your goals, values, and best interests.
Here are three key reasons why choosing an independent, fee-based, fiduciary advisor is a decision that can bring you peace of mind and long-term success.
When it comes to financial advice, "independent" is more than just a word—it's a philosophy. Unlike advisors tied to specific financial institutions or products, an independent advisor is free from the constraints of sales quotas or company-imposed limitations. This freedom means more options for you as a client.
Imagine going to a doctor and only being offered medications from a single pharmaceutical company. That’s how it can feel when your financial advisor is restricted to recommending products from one firm. Independent advisors, on the other hand, can choose the best investment options across a broad range of products because they have no allegiance to a specific brand or fund family. They have the autonomy to create portfolios that are truly tailored to your unique goals.
Much like a physician prescribing the right treatment for your specific needs, an independent advisor is able to provide unbiased advice, designed with only your best interests in mind. It’s about creating a financial plan that reflects your future, not someone else’s bottom line.
Fee-based advisors don’t earn commissions from selling you financial products—they are compensated by a flat fee or a percentage of assets under management (AUM). This model fosters transparency and trust.
First, you know exactly how much you’re paying and what you’re paying for. Fee-based advisors provide clear, upfront information about their charges, so there are no surprises or hidden fees lurking in the fine print.
Second, and more importantly, a fee-based structure aligns your advisor's interests with your own. Because your advisor's compensation is tied to your portfolio's performance, their incentive is to see you succeed. The better your investments perform, the better your advisor does as well. You can feel confident that the advice you’re receiving is designed to help you achieve your financial goals, not sell you a high-commission product.
Fee-based advisors are not working under the pressure of sales quotas, and they aren’t motivated to push products that benefit them more than you. They’re focused on long-term relationships and helping you grow your wealth steadily over time.
An independent, fee-based advisor offers you flexibility that commission-based advisors may not. Fee-based advisors often recommend investments that are more liquid and easy to access if you ever need your funds. Many high-commission products, like certain types of annuities or non-traded REITs, can lock you into long-term commitments with hefty penalties for early withdrawal.
On the other hand, fee-based advisors typically guide you toward investments that provide flexibility and liquidity, allowing you to adjust your strategy as your life circumstances change. This flexibility becomes even more important as you approach retirement, when you might need to access your funds quickly for unexpected expenses or new opportunities.
Ultimately, the value of working with an independent, fee-based financial advisor lies in the alignment of interests and the freedom to design a financial plan that truly works for you. Whether you’re preparing for retirement or navigating life’s financial complexities, having a trusted partner who prioritizes your success can make all the difference.
When considering your financial future, look for someone who will always put your best interests first—a qualified, independent, fee-based advisor. If you’re ready to take the next step toward financial confidence, reach out today. Let’s work together to build a stress-free plan for your financial future.
After my family left Vietnam, to start from scratch in America, my parents were very conscientious about what they spent money on. However, they always prioritized helping my brother and me, while putting their own needs on the back burner. In their unspoken gestures of sacrifice and giving to others, I discovered my own sense of what it means to serve others. A commitment that I continue to hold close to my heart, as I work to help my clients regain their time, feel well cared for, and ultimately experience the peace of mind they deserve.
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1Barron’s 2024 Top 100 RIA Firms. Barron's© magazine is a trademark of Dow Jones L.P. The ranking of independent advisory companies is based on assets managed by the firms, growth, technology spending, succession planning, and other metrics.
2 Retention Rate Source: Allworth Internal Data, FY 2022
3 The NBRI Circle of Excellence Award is bestowed upon NBRI clients meeting one or both of the following criteria: Total Company score at or above the 75th percentile of the NBRI ClearPath Benchmarking Database and/or improvement of five (5) or more benchmarking percentiles in Total Company score over the previous survey.
4 As of 1/1/2025, Allworth Financial, an SEC registered investment adviser and AW Securities, a registered broker/dealer have approximately $26 billion in total assets under management and administration.
5 InvestmentNews 2020 and 2021 Best Places to Work for Financial Advisers. The ranking reflects survey responses and scores completed by both employers and employees. Employers report their organization’s workplace policies, practices, and demographics. Employees complete a survey designed to measure the employee experience.
6 2021 Value of an Advisor Study / Russel Investments
7 Ranked 9th Top Wealth Managers By Growth in Assets in the U.S. from RIA Channel, 2022. RIA Database and RIA Channel are registered trademarks owned by Labworks, LLC.
8 USA Today Best Financial Advisory Firms 2024. The ranking is based on the growth of the companies’ assets under management (AUM) over the short and long term and the number of recommendations they received from clients and peers.
9 NBRI Best in Class Ethics 2023. The Best in Class level is bestowed upon clients performing at or above 90 percentile of the NBRI ClearPath Benchmarking Database.
✢ Scott Hanson, Investment Advisor 2005, 25 most influential people in the financial services industry. The ranking reflects 25 people who Investment Advisor magazine believes have had or will have the greatest influence on the financial services industry.
✼Pat McClain, InvestmentNews 2014, Invest in Others Community Service Award, presented to an advisor who has made an outstanding impact on a community through managerial contributions to a non-profit organization.
†Financial Times, FT 300 Top Registered Investment Advisers, June 2019. The ranking reflects six areas of consideration including the company's years in existence, industry certifications of key employees, AUM, asset growth, SEC compliance record and online accessibility and calculates a numeric score for each company.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
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