As portfolios grow larger for both institutions and high-net-worth individuals alike, they can become more challenging to manage effectively and optimize. Developing a winning strategy can subsequently become more difficult as you start to take on a more diverse array of investments, and many investors can struggle to keep up with the demands of this challenge. 

This is where registered investment advisors (RIA) can come into play. Offering sound advice and much-needed, evidence-backed guidance for those in need of financial, estate, and investment planning services, an RIA firm will be able to help you evolve in line with your growing portfolio and continue to get the returns you desire.

What Is a Registered Investment Advisor? 

The term RIA is most commonly used to refer to a firm, rather than an individual. An RIA firm may have various financial specialists and experts on its staff, including Certified Financial Planners (CFPs), Chartered Financial Analysts (CFAs), and so on. The team is typically made up of investment advisors and financial planners, working with high-net value people and institutions to provide investment advice with a fiduciary duty to every client.

An RIA will manage assets of investors, acting in much the same way as a fiduciary, in that they must always work in the best interests of their clients, behave ethically and in accordance with the client's demands and circumstances, disclose any and all conflicts of interest in relation to their business dealings, and always put the client first, rather than their own interests or the firm's best interests.

Benefits of Working with RIAs

There are many potential advantages of teaming up with an RIA firm and allowing them to manage your investments in your best interests. Here are a few key benefits: 

Your Best Interests Come First 

As stated earlier, a registered investment advisor has a fiduciary duty to always act in your best interests. This is very important, and it's vital to make the distinction between an RIA and a typical financial advisor. Other financial advisors, experts, and planners may claim to act in your best interests, but don't have the same legal obligation as an RIA to act in good faith. 

When you work with an RIA, you know that they are bound by the principles and code of their profession to truly work for you, always putting your best interests first and never making decisions based on their own needs. They may, therefore, recommend investments that won't really result in many positive benefits for themselves, and this allows you to enjoy total peace of mind throughout the process.

Full Disclosure 

Another key aspect of the registered investment advisor is that they must always disclose all relevant materials and information to their clients. Bound by the standards of the Securities and Exchange Commission (SEC), the RIA simply has to make sure that clients are given all the data and details you need. 

Again, this isn't true for every financial planner or advisor around, so it's another of the key aspects that sets RIA firms apart from the rest, giving their clients additional levels of care and assurance. When you work with an RIA, you'll always be able to be sure that nothing is being hidden or kept from you and that you'll always have all the info you need to make big decisions.

Experience and Expertise

Ultimately, the main reason why someone might want to work with a registered independent advisor in the first place is that they want their assets and investments to be managed properly, resulting in the soundest investments and the best possible returns. In many cases, the people or institutions seeking out the services of RIA firms aren't able to manage their investments alone or no longer wish to do so, wanting expert help and guidance to make the right choices.

RIA firms have some of the most experienced financial experts on their teams, with years of experience and high levels of financial qualifications on their side. Working on your behalf and always putting your best interests first, without any conflicts of interest, these RIA firms can provide you with the highest standards of financial assistance to maximize your savings, navigate major life events, and get the best possible results.

Final Word

It can often be difficult for people to keep track of their many investments, and it takes a lot of time and effort too. A registered investment advisor will help to take a lot of the hassle out of the process, working with you and for you to get the best results from your money and investment choices.