FAS’s approach to investing is strategic. Decades of financial market history shows that tactical investing – altering your asset allocation over time in the hopes of outperforming – often underweights the best performing asset classes. FAS’s Asset Allocation models reduce the tactical high risk of error and rely on a strategic allocation across asset classes. But our strategic models are like no others. The engineering behind them builds on three key insights.
If you’re starting out and don’t have a trove of assets, an planner who charges by the hour could be the best fit. These planners are best for when your needs are fairly simple. Typically, hourly planners are just building their practice, but that usually means they’ll take the care to get your finances right. After all, they’re relying on your recommendation to grow their business. Finally, many experienced advisers do hourly work because they enjoy working with younger clients who can only afford to hire someone at that rate.
A good financial planner will not make recommendations until they understand your goals and have run a long-term financial plan for you. If you meet with someone who starts talking about a financial product right away, even if they call themselves a financial planner, they are more likely a financial salesperson. A good financial planner will want to gather account statements and data on all aspects of your financial life.
Financial planners who explicitly provide financial advice and manage money for clients are considered fiduciaries. This means they are legally obligated to act in a client’s best interests, and they can’t personally benefit from the management of client assets. Instead, they are expected to manage these assets for the client’s benefit rather than their own. Fiduciary specifics can vary. Registered investment advisors (RIA), for example, are fiduciaries under the Investment Advisers Act of 1940 who advise high-net-worth individuals on investments. They are regulated by the Securities and Exchange Commission (SEC) or state securities regulators.