The biggest difference is that an Investment Advisor has a fiduciary responsibility to his client or in plain english he/she has to recommend what is in his/her client’s best interest. This responsibility increases the liability of the advisor to recommend what the client should invest in based on the entire holistic view of the client’s situation.
The new financial reform law will eventually require stock brokers to be held to this higher standard, however there is still the issue of conflict of interest. The registered representative is actually making a commission on the products he/she recommends. As opposed to an investment advisor who are charges a fee for the service of making the recommendation and only makes money when the client makes money. This takes away the advisor’s incentive to recommend a product on which he is making a commission.
If you would like a more explicit explanation as it pertains to your own situation please call my office to set up a consultation. There are no fees for a consultation or even recommendations unless we mutually agree on them.
If that sounds like the type of plan that is worth your time investigating please give me a call at 610-695-8748 or make an appointment using the form above.