Choosing the Right Advisor

Financial advisors come in many shapes and sizes.  Look for the service model that matches your needs.

Stock Brokers - If you want to trade stocks, a good stock broker can help you quickly and efficiently.  However, the advice is often limited by incomplete information about your financial situation.

Best fit:  The do-it-yourself investor who wants to bounce ideas off someone.

Investment Advisors – Most investment advisors focus on investing and usually employ a variety of investment vehicles.  They can answer market questions, conduct research, design portfolios, advise on investment strategies and formulate an investment plan.  The service may include retirement projections.  Objectivity can be challenging when commissions vary by product and transactions are the lifeblood of the business.

Best fit:  Investors seeking mostly investment advice.

Fee-Only Investment Advisor – The conflicts of interest with commissions mentioned above can be eliminated by hiring a fee-only advisor.  A fee-only advisor receives no commissions.  Fees are ongoing and based on the value of the assets managed or perhaps hourly.  This does not remove conflicts of interests entirely – for example, adding to your investment portfolio is more beneficial to a fee-only advisor than paying off your debt.

Best fit:  Those seeking ongoing investment advice on a fee basis.

Financial Planners – Some “investment advisors” expanded services beyond investment advice.  To differing degrees, they believe investment advice should be provided within the context of an overall financial plan. Financial planning services vary greatly by firm (examples: estate planning, income tax planning, insurance planning, retirement planning, cash flow planning, debt management).  Firms may be fully independent or tied to a large brokerage firm. 

Best fit:  Investors seeking ongoing investment advice within a context of in-depth financial planning.

Pathways Planners – We are an independent fee-only financial planning firm.  We combine investment advice with extensive financial planning services (described under What We Do or What to Expect).

Please review our Financial Consulting Agreement and our ADV Part II linked below.  These documents include a summary of services, engagement standards, and our fee structure.  The Agreement is a bit more concise and user friendly than the ADV Part II.

Best fit?  Perhaps we are the best fit.  Happy to explore the possibility with you!