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Educational Resources

By Joanne M. Welker, CFA, Senior Vice President and Manager, Advisory Services

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Deciding if a brokerage (commission based) or an advisory (fee based) account is right for you may feel overwhelming or something you question in your mind even after the decision has been made.  Let’s start to break it down by considering these three things:

Time – Managing an investment portfolio takes time.  Time to analyze and perform research on the securities for consideration.  Time to monitor the existing positions in your account.  And time to trade the account.  Do you have the time? If you don’t have the time to dedicate to your portfolio, perhaps an advisory account is a solution for you.

Expertise – Do you have investment expertise? Portfolio managers have experience and education in the field of managing a compilation of securities.  Though there are tools and guides available to DIY’ers and your broker is always there to provide assistance, you may feel you lack the expertise to make the final decision regarding buys, sells, position sizes, asset allocation, etc. When you open an advisory account, you are hiring a professional money manager to utilize their expertise to manage a portfolio for you.

Desire – And finally, do you have the desire? Even if you have the time and expertise, you may lack the desire to spend your time managing and monitoring your portfolio.

For more information about evaluating brokerage vs. advisory, please see this piece “Comparing Brokerage vs Advisory Accounts” and call your financial advisor to discuss.

October 1, 2019 |