Does your financial adviser work for a B/D?

As I transitioned from being an employed financial adviser to an independent financial adviser in 2007, I thought I was free of the "conflict of interest" beast eating clients and me alive. Not so.

Although this article is geared towards industry professionals, it is a great resource for understanding what the differences are between B/Ds and RIAs.

I pulled this snippet from Michael Patton's article I referred to above. "An RIA is required to adhere to a fiduciary standard which is defined at uslegal.com as: A fiduciary duty is an obligation to act in the best interest of another party...A fiduciary obligation exists whenever the relationship with the client involves a special trust, confidence and reliance on the fiduciary to exercise his discretion or expertise in acting for the client...A person acting in a fiduciary capacity is held to a high standard of honesty and full disclosure in regard to the client and must not obtain a personal benefit at the expense of the client."

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Managed Portfolios Status: I have two IRA portfolios completed.

As I worked late into the evening last night constructing managed portfolios, I couldn't help but get excited over what you are about to experience. You will have such a tremendous edge over a friend or family member who has money managed by ABC Wirehouse or XYZ Independent...these platforms typically limit who an adviser may work with, the technology used, and the speed at which information reaches clients.

As a business consultant, developing and delivering a high-level money management platform to clients with as little as $25,000-$50,000; not $100,000, $500,000, or even $1,000,000 or more is spectacular.