I am an Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor (RIA) based in Fairfield, IA. I am also registered with Cambridge Investment Research, Inc., an independent broker-dealer with over 3,000 registered representatives nationwide.
Most clients pay fee-only or an hourly rate. The size and complexity of the client’s wealth management and financial and retirement planning determine that fee.
Wealth Management • Wealth Advisor In Boston, Massachusetts
Put Your Money in the Hands That Know Best
Life isn’t all about money, but it is an important tool for building the life you want. Like with any tool, the best results are achieved when skilled, experienced hands are in control. I have studied the financial markets for over 30 years, and as the new financial ‘normal’ is continually redefined, I am always striving to learn more about it and adapt my knowledge to it.
The result: I can help you make smart wealth management decisions for every stage of your life, under all market conditions.
Every smart investment decision starts with me listening to you and asking you the right questions, including:
- What are your short-term and long-term financial goals?
- What kinds of financial assets are you working toward?
No Cookie-Cutter Financial Planning Solutions
As an independent financial advisor, I have access to many financial products, including mutual funds, ETFs, stocks, bonds, annuities, and life insurance programs. I use these and other products to build custom financial planning solutions for people according to their individual needs and goals.
Wealth Management Fee-Only or Commission What Is Best for You?
Many financial advisors are registered as both representatives of a broker-dealer and as investment-advisor representatives of an investment advisor.
Investment advisors are fiduciaries who owe the client a higher oath of loyalty. They must act in their clients’ best interest and disclose any conflicts of interest.
Registered representatives are not fiduciaries. The advice they offer the client must suit the client’s particular situation. However, they do not have to disclose any conflicts of interest.
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If that is not confusing enough, there is a third standard, a fiduciary advisor who falls under ERISA, the law governing retirement and pension plans. Unlike investment advisors who can have conflicts of interest as long as these are disclosed, an ERISA fiduciary advisor must eliminate all conflicts.
Which Registration is Right for You?
I do most of my wealth management business (90%) as an investment advisor representative (fiduciary). I charge the client a level or a fee only, usually based on their portfolio’s size and complexity.
If the client has a smaller account, such as a Roth IRA or a 529 Plan, or is a teacher saving in a 403(b) plan, I opt to receive commissions as a registered representative. Most of these clients end up paying less with a commission-based product. Moreover, maybe they do not need as much time as those who pay an annual fee.
A Uniform Standard of Care
Under the 2010 Dodd-Frank Act, Congress directed the Securities and Exchange Commission (SEC) to study the need for establishing a new, uniform federal fiduciary standard of care for brokers and investment advisors.
Having a uniform standard would make it easier for investors, as many are unaware that there are two standards and that the same financial advisor could wear both hats.
The New Rule from the SEC
Beginning June 30, 2020, broker-dealers will start operating under a new standard called Regulation Best Interest. This requires brokers to better align their interests with those of their clients by eliminating conflicts of interest, such as proprietary product requirements, sales quotas, or sales contests.
Registered representatives will now be called financial professionals. Any advisors who are fiduciaries can continue calling themselves financial advisors.
Some critics complain that the new standard does not meet the uniform standard’s original intent.
Wealth Management Services
I minimize conflicts of interest so that I can provide objective advice
I work with individuals to build or update their personalized investment portfolios based on their goals and risks and then review their portfolios at least once a year.
I advise on any possible rollovers from employer retirement plans and help design strategies for income planning during retirement.
I can also advise on your life and disability insurance needs.
I implement, manage, and service the retirement plans of companies and not-for-profits per the rules and regulations of ERISA and the Department of Labor (DOL). I also can install and manage group life and disability plans.
I advise executives and business owners on their non-qualified deferred compensation plans, stock options, and company stock (net unrealized appreciation, NUA).
Most client investment accounts are held at Pershing LLC and Fidelity Investments, Pershing, which is a wholly owned subsidiary of the Bank of New York Mellon Corporation (BNY Mellon).
Please be sure to speak to your advisor to consider the differences between your company retirement account and investment in an IRA. These factors include, but are not limited to, changes to the availability of funds, withdrawals, fund expenses, fees, and IRA-required minimum distributions.
Due Diligence Mutual Funds and Exchange-Traded-Funds (ETFs)
I provide a mutual fund and exchange-traded-fund (ETFs) due diligence selection process using Fiduciary Focus Toolkit™. Screening 10,000+ funds down to a couple hundred eligible for use in your portfolio—the process screens for manager tenure, fees, performance, and style.
I cross-reference my results with fi360 Fiduciary Score ™. That score is an easy-to-use and easy-to-understand method for objectively comparing peer investments and determining their overall appropriateness. It is a ready-made solution for due diligence that can help advisors demonstrate a careful investment selection and monitoring process.
Wealth Management Bigger Accounts
The client needs a minimum of $100,000. It can include just about any account: IRAs, 403bs, joint accounts, personal brokerage accounts, etc.
- Your account size and the complexity of your investment management will determine fees, but it is never greater than 1%.
- The accounts are primarily invested in mutual funds and exchange-traded funds (ETFs). All funds have passed my rigorous due diligence process.
- I design the portfolio to meet your goals and ensure it is consistent with how much risk you are comfortable with taking.
- After the account is set up, you receive monthly statements, and you can follow your account online with CirStatements.
- We periodically meet to check the portfolio, discuss performance and rebalancing, and confirm you are on track to achieve your goals.
- The accounts’ custodians will be Pershing, a Bank of New York Mellon.
Investment Management: If you don’t have $100,000 to invest
My fee-based accounts require a minimum of $100,000; if you have less than this amount to invest, I usually charge a commission or an hourly rate for your asset management.
- However, I use the same due diligence process for building your portfolio. 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 long manager tenure.
- I work with all types of 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.
- The custodian for the accounts will be Pershing, a Bank of New York Mellon company, or the fund family directly.
- Periodically, we will meet to check if the portfolio is on track, monitor performance, and discuss rebalancing.
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Wealth Advisor Near Me
From my Boston office, I will provide expert, highly personalized financial planning, retirement planning, and investment solutions when you need an independent wealth advisor in Massachusetts, Boston or Greater Boston, Salem or the North Shore, Hingham, or any other town on the South Shore, Andover, the Merrimack Valley, and the MetroWest, including Framingham, or the Southcoast, Martha’s Vineyard, Nantucket, and Newport, RI .
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.