Six Advantages of Working with a Registered Investment Advisor (RIA)

July 8, 2024

Learn How the Right Professional Guidance Can Make a Meaningful Difference

Investing your money can be thrilling, but it can also feel overwhelming if you’re not well-versed in the process. This is where the advantages of working with a Registered Investment Advisor (RIA) come into play. An RIA can guide you through selecting the right companies to invest in, determining the optimal investment duration, and reacting appropriately to market changes based on your needs and goals. With your hard-earned money at stake, working with an experienced RIA like Davidson Capital Management is a smart way to be certain your investment strategy fits your unique needs and circumstances.

If self-managing your assets isn’t right for you, either due to a lack of time, knowledge, or confidence, having someone you trust actively manage your assets can help guide you through the ups and downs of the market, with an eye to accomplishing your financial goals. Below we’ll discuss six benefits that come from working with a Registered Investment Advisor (RIA).

Six Savvy Advantages of Working with a Registered Investment Advisor

1. Registered Investment Advisors use strategic investment strategies.

Investing isn’t one-size-fits-all, and there are multiple approaches to consider. For some people, it’s simply a casual hobby. If you take your investments seriously, however, working with an RIA may be a smarter move. An RIA can help you determine your short- and long-term goals and provide a comprehensive investment management strategy to help make those goals a reality. Depending on what you’re looking to get out of your investments, they’ll be able to manage your investments through the big decisions that could have a dramatic impact on your financial future and help you arrive at the proper strategy for your unique situation and phase of life.

2. Registered Investment Advisors protect you from your emotional biases.

The only predictable thing about the markets is that they are unpredictable. You can count on having to weather seasons of volatility with your investments. Too often, investors experience a dip and pull out of the markets in a panic. Unfortunately, emotional decisions like this are detrimental to achieving long-term success with your investments.

RIAs understand market volatility and they also understand how scary it can be to experience it as an investor. An experienced professional can help you regulate your emotions and keep you from making rash decisions that may negatively impact your portfolio down the road.

3. Registered Investment Advisors bring experience.

Seasoned RIAs have lived through many market cycles, experiencing trends and big anomalous events, too. In other words, they’ve been around the block a few times and they understand what to do with your money – and when to do it – in order to help you accomplish your goals. Their entire job centers on navigating the markets through their investment management philosophy, so they’ll be able to bring experience to the table to guide your portfolio through the uncertainty. Additionally, an RIA’s knowledge and experience can help you better understand industry trends and interpret data that may be difficult to comprehend on your own.

4. Registered Investment Advisors are fiduciaries who work for YOU.

RIAs who work independently will be dedicated to working for YOU, the client, in a fiduciary capacity to help you achieve the goals you’ve set. An RIA who is the right fit for you will share your common values and be someone that you can trust implicitly with your money. They’ll be able to speak with you intelligently about what’s occurring in the markets and with your investments, explain it to you in layman’s terms, provide full transparency, and manage your assets prudently to make the most of the many investment choices available.

5. Registered Investment Advisors can identify hidden opportunities.

When you think of investing, it may seem like it’s just about buying shares of companies that you predict will do well in the future – but it’s much more complex than that. An RIA also considers things like tax implications and time horizons. Working with an RIA means you have someone in your corner who understands the nuances of this and can help you maximize opportunities in your portfolio.

6. Registered Investment Advisors do the legwork.

Savvy investing requires not only time, but a deep knowledge of the financial markets, economics, monetary policy, interest rates, company fundamentals, and technical indicators. An experienced RIA will be able to use tools, resources, knowledge, and relationships at their disposal to handle all the legwork for you. They’re the ones who will do the research, create short-term and long-term plans for your investments, implement their investment management philosophy, and then execute those plans on your behalf. Saving yourself time is one of the greatest advantages of working with a Registered Investment Advisor.

What Does Working with an RIA Add Up To? Greater Peace of Mind.

As you consider the advantages of working with a Registered Investment Advisor, it’s important to remember that no one can time the markets successfully, including RIAs. So, investing always requires that you open yourself up to a certain amount of risk. However, there is a lot of data and many tools available, and when you utilize the services of an RIA who has many years of experience, a proven investment performance track record, and a stringent investment management philosophy, you can minimize your risk. Finding an RIA that you can trust and build a relationship with means greater peace of mind that you’re making smart decisions with the money you invest.

At Davidson Capital Management, we have 70+ years of combined investment management experience and we are here to help our clients invest with the confidence, achieve their goals, and find long-term success in their investments. If you’d like to speak with one of our professionals about your investment portfolio, please contact us today.