Independent Financial Advisor Boston • Tim Hayes
I am an Investment Advisor Representative at Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser (RIA) firm based in Fairfield, IA. I am also registered with Cambridge Investment Research, Inc., an independent broker-dealer firm with over 3,000 registered representatives nationwide.
I’ve held an industry securities registration for 30+ years and am subject to SEC and FINRA oversight.
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Independent advisor Tim Hayes offers savvy investment advice from an objective perspective.
As an independent Boston financial advisor, I’ve helped clients with their retirement and financial planning for over 30 years. Unfortunately, financial markets are more complicated and volatile than ever. That’s why I remain committed to learning and adapting my knowledge and skills to the new financial “normal” as it’s continually redefined—for better or worse.
If you wish to invest successfully in this day and age, this is what it takes.
Investment financial planner
Your financial future is too important to rely on amateur hunches. And let’s face it, you don’t have the time or interest to become an investing expert. So you shouldn’t have to. And the good news is, as one of my clients, you’ll never have to!
- I emphasize education – I’ll ensure you’re aware of your investment options and the potential risks and upsides of each. I’ll give you an objective perspective and honest opinions based on years of planning experience.
- I stick around – My clients know that I am there for them, and I am highly proactive about providing ongoing information and advice as changes in your life affect your financial situation and goals.
- Objective advice – No cookie-cutter solutions or corporate financial overlords here! Being independent means I have the freedom to choose from all the investment options available to clients and recommend the ones I feel are best suited to your personal needs, regardless of who’s offering them. Unlike some Boston advisors, the sky is the limit regarding the ideas, products, and strategies I may bring to your attention.
Investing is a risky business. Give yourself a fighting chance for success.
An ongoing relationship with a Boston financial consultant may help you avoid impulsive decisions that could hurt your investments.
2022 was a lousy year for investors. Both stocks and bonds went down, and bonds, supposedly the least risky of the two, went down almost as much as stocks. Diversification—the hope that if something went down, something else would go up—didn’t work.
Can financial advisors be independent?
A truly independent investment advisor is self-employed and has no financial or business incentives to sell a company’s financial products. Therefore, the advisor shuns all subtle attempts to influence their behavior, such as invitations from companies for free dinners or tickets to ball games.
To remain independent, the advisor must do much of their research, including finding objective tools and sources, staying up-to-date on new rules and regulations, and recognizing it is human nature to feel an obligation to reciprocate such gifts.
The financial advisor must decide if they will create their own registered investment advisory firm or partner with an established firm, recognizing the strengths and weaknesses in each path.
What are the disadvantages of an independent financial advisor?
One disadvantage of a sole-proprietor independent advisor is succession planning. That is what happens to the advisor’s clients when an advisor retires or, God forbid, passes away.
Instead, if the client were with a big firm such as Morgan Stanley or Merrill Lynch, they would most likely be reassigned to a new advisor, making continuity easier. However, the process becomes backward in that the company, not the client, chooses the advisor.
What are the benefits to the Client of an independent financial advisor?
- You will understand investment concepts. I talk in familiar language, not financial jargon.
- You can make educated investment decisions with the help of my objective, independent research.
- I am free to collaborate with you and advise you objectively as we design a financial plan to address your concerns and establish a path to your goals and dreams.
- You will be able to trust and confide in me, as I will understand and prioritize your financial priorities and goals. I will serve you in a relationship.
- You will not have to explain your financial history again and again to a series of new faces; I will be here for you.
What’s the difference between a financial advisor and a financial planner?
There is no financial planner in the regulations. Instead, there are investment advisor representatives and registered representatives. ‘Financial planner’ is more of an industry term for someone who looks at your entire financial picture. Some financial planners are fiduciaries, and others are not. Some charge a fee, some are compensated through a commission, and some receive both.
A private organization offers a designation certified financial planner (CFP). Since 2018, all holders of that designation are required by the organization to be fiduciary. But the 40 Act determines if someone is acting as a fiduciary, so the organization requires that anyone who wants to hold that designation be willing to fall under the 40 Act.
There is also an organization called the National Association of Personal Financial Advisors (NAPFA), a directory where you can find a fee-only advisor in your area. Financial advisors pay annual dues of $249 to belong to NAPFA, plus a one-time, non-refundable processing fee.
My professional designations
Individuals who hold the AIF® designation have:
- Completed the AIF® Designation Training;
- Passed the AIF® designation exam;
- Met the designation’s prerequisites and qualification and conduct standards;
- Accrued a minimum of six hours of continuing professional education, with at least four hours coming from fi360-produced sources;
- Attested to a code of ethics.
Individuals who hold the CRPS® designation have:
- Completed a course of study encompassing design, installation, maintenance and administration of retirement plans;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and to apply theoretical principles to life situations;
- Pledged adherence to the CRPS® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
CRPS® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
Individuals who hold the AWMA® designation have:
- Completed a course of study encompassing wealth strategies, equity-based compensation plans, tax-reduction alternatives, and asset-protection alternatives;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and apply theoretical concepts to real-life situations;
- Agreed to adhere to the AWMA® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
AWMA® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
CFS designation is awarded upon passing an examination on mutual funds, ETS, REIT’s, closed-end funds, and similar investments. Advanced studies on topics include:
- Fund analysis and selection;
- Asset allocation;
- Portfolio construction;
- Sophisticated investment strategies for risk management, taxes, and estate planning.
San Diego, CA, November 13, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the only nationally recognized tax designation, CTS™ (Certified Tax Specialist™). This graduate-level designation is conferred upon candidates who complete an 135+ hour educational program focusing on personal income taxes and methods to reduce tax liability. The combined top state and federal bracket can easily exceed 40%.
San Diego, CA, September 1, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the estate planning designation, CES™ (Certified Estate and Trust Specialist™).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on trusts, wills, probate, retirement benefits, caring for children, and what should be done after the death of a loved one. Over $50 trillion is expected to pass from one generation to another during the next half-century.
The Accredited Portfolio Management AdvisorSM, or APMA® program, is a designation program for financial professionals. The program educates advisors on the finer points of portfolio creation, augmentation, and maintenance. Students will gain hands-on practice in analyzing investment policy statements, building portfolios, and making asset allocation decisions.
San Diego, CA, May 12, 2020 – The Institute of Business & Finance (IBF) recently awarded Timothy Hayes with the only nationally recognized annuity designation, CAS® (Certified Annuity Specialist®).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on fixed-rate and variable annuities. Several trillion dollars are invested in annuities; it is estimated that at least one-third of all annuity contracts are not titled correctly.
Independent planning costs
Over the last twelve years, the government’s interest in financial advisor compensation has dominated the regulatory landscape. It began after the 2008 financial crisis with the Dodd–Frank legislation, which tasked the SEC with reviewing the two ways that financial advisors get paid: fees and commissions.
Next came the 2015 Fiduciary Rule from the Department of Labor. It would have required most financial advisors working with retirement plans, including IRAs, to charge a level fee if enacted as proposed. The belief was that the solutions provided to the client would be better because the compensation earned by the advisor was the same no matter the product recommended.
After much discussion, court battles, and changes, both are now in effect. The Fiduciary Rule no longer imposes a level fee, but it does require a fiduciary standard for most advisors interacting with retirement plans, including IRAs. On the other hand, Regulation Best Interest, another SEC rule, requires finance professionals paid by commission to work in the client’s best interest.
Financial advisors working under the fiduciary standard usually charge the client a fee based on the percentage of the client’s assets managed. They might also provide other financial planning services paid for by that fee.
That fee seems to hover around 1% by convention, or it started that way because it is a round number. Anything above seems excessive because clients usually have additional costs for the products, which are not paid to the advisor. Hopefully, the advisor keeps those product costs low by incorporating institutional share classes and index funds.
Instead of an asset fee, a fiduciary advisor could charge the client an hourly fee. However, again, the product recommended has no bearing on the compensation earned by the fiduciary advisor. However, I find the hourly fee arrangement less common as most people paying for fiduciary advisory services have substantial assets that the advisor charges a fee to manage.
However, the hourly fee arrangement may become more common as both the Fiduciary Rule and the Best Interest Standard place hurdles on advisors, recommending that customers roll over their 401k accounts.
That rollover is what the previous advisor charged for management or a commission earned after recommending a rollover for many people. Because of these hurdles, advisors may recommend that clients keep their money in the 401k and set an hourly fee arrangement to manage it there.
One problem with the commission model was that there were so many undisclosed conflicts of interest influencing the product recommendations. Too many times, the customer was placed into a higher-cost product. However, many of those conflicts should be gone with the new Regulation Best Interest, making a one-time commission a competitive alternative to ongoing fees for any client whose 401k plan doesn’t offer great choices for retirement income or institutional pricing.
Financial advisor Tim Hayes believes the Department of Labor (DOL) got it right
By striking a balance between new protections for consumers with additional burdens on the financial services industry, Financial Advisor Tim Hayes believes the Department of Labor (DOL) hit a home run with its new retirement advice rule.
Fixing the Law
By eliminating a 1975 rule made when retirement plans were much different than they are today, the Department of Labor rectifies the contradiction that financial advisors with conflicts of interest are providing financial advice to retirement accounts even though ERISA, the law governing these accounts, prohibits this from happening.
What does the new rule mean for consumers? “If you have a 401(k) or 403b, the advisor fees might come down. If you roll over the 401(k) or 403b to an IRA, the fees in the IRA should be competitive with what they were in the 401(k).
Portfolio review: aligning your goals with your investments
A portfolio review compares your current fees and costs with those for a hypothetical portfolio using mutual funds and exchange-traded funds (EFTs) that have passed my due diligence process. It also compares your current investments’ performance to specific benchmarks and the hypothetical portfolio.
- Holding Summary – Overview of the proposal, our firm, and the services we provide
- Style Analysis – by U.S. equity, international equity, and fixed income
- Portfolio Performance – Compare the performance of your current and proposed investments
- Fee Analysis – Current vs. proposed portfolio
- Risk Tolerance Report
- Closing Comments and helpful items for your consideration
Due diligence mutual funds and exchange-traded funds (ETFs)
I provide a due diligence selection process using the Fiduciary Focus Toolkit™. It screens 10,000+ mutual funds and EFTs down to a couple hundred eligible for use in your investment management. The process screens for manager tenure, fees, performance, and style.
I cross-reference my results with their fi360 Fiduciary Score™. That score is an easy-to-use and easy-to-understand way to compare peer investments and determine their overall appropriateness objectively. It is a ready-made due diligence solution that can help advisors demonstrate a careful investment selection and monitoring process.
Boston investment management
The client needs a minimum of $250,000, which can be in any account: IRAs, 403bs, joint accounts, and individual brokerage accounts. (There is no typical account size or typical net worth)
The fee depends on your account size and complexity but is never higher than 1%—the larger the account, the lower the cost.
The accounts are primarily invested in mutual funds and exchange-traded funds (ETFs). All the funds have passed my rigorous due diligence process. I screen for fees, performance, fund turnover, and manager tenure.
I design the portfolio to meet your goals, consistent with how much risk you are comfortable taking.
After your account is set up, you receive monthly statements, and you can follow your account online with CirStatements. Furthermore, we periodically meet to review the portfolio, discuss performance and rebalancing, and check if you are on track to achieve your goals.
What if I do not have $250,000?
My job is to provide independent investment advice to all potential customers, so I do not turn away clients. However, given that my fee-based business usually requires minimum assets of $250,000, I typically charge a commission or an hourly rate if you have less than this to invest.
However, I use the same due diligence process for your portfolio management. I use mutual funds and exchange-traded funds (ETFs) that have passed my due diligence process screening for low fees, historically competitive performance, low fund turnover, and manager tenure.
I work with all account registrations: IRAs, Roth IRAs, 403(b)s, SEPs, SIMPLES, 529 Plans, etc.
After the portfolio is set up, you will receive monthly or quarterly statements. You can follow your account online at CirStatements. Your account’s custodian will be either Pershing, a Bank of New York Mellon company, or the fund family itself.
Boston & Dartmouth advisor near me
I will provide expert and independent financial advisory from my Boston or Dartmouth offices when you need an personal financial advisor in Massachusetts (Boston and Greater Boston, Salem or the North Shore, Hingham or another town on the South Shore, Andover and the Merrimack Valley, the Metrowest including Southborough, or the Southcoast, Martha’s Vineyard, and Nantucket)
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice.
M – Boston and Dartmouth Investment & Financial Near Me
- Manchester by the Sea
- Marblehead – I worked at the Corinthian Yacht Club during college
- Martha’s Vineyard
N – Boston and Dartmouth Investment & Financial Near Me
- New Bedford
- North Andover
- North Attleborough
- North Reading
P – Boston Investment & Financial Near Me
R – Boston Investment & Financial Near Me
S – Boston Investment & Financial Near Me
- Salem- I lived in Salem after college
T – Boston Investment & Financial Near Me
W – Boston and Dartmouth Investment & Financial Near Me