The Difference Between a Registered Investment Advisor and Broker

As always, Jeff, Joe, and Kyle kick off this week’s episode by taking time to discuss the past week’s market trends, why they’re trending the way they are, and what it all could mean. Though we tried to end the week on a positive, the Dow, S&P 500, and the NASDAQ found themselves showing volatility and ultimately, losing steam by the end of the week. This downtrend can mostly be accredited to the Capital Gains Tax Increase presented by President Biden on Thursday. Since everyone knew that this increase was coming, however, the markets shouldn’t have reacted to this news at all, and yet, we saw it react in big and small ways – the men get into why this is so and what we can expect in the upcoming weeks.  

Later in the show, there are many different factors you should consider when choosing a financial investment advisor. Perhaps the most important factor, however, is whether or not your advisor is legally obligated to make investment decisions that are in your best interest. This legal obligation is referred to as a fiduciary duty, which is a fancy term that simply means an advisor is required by law to offer financial and investing advice that’s best for the client, not the firm.  The Money Wise Guys spend some time discussing this legal obligation and how it’s applied to Registered Investment Advisors (RIAs) and broker-dealers. Depending on your financial situation and your long-term financial goals, you might want to reconsider who you’re entrusting with your money. 

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