NerdWallet–Questions to Ask an Advisor
1. Are you a fiduciary?
Yes. Here is the long answer:
Registered Investment Advisors (RIAs) are legally obligated to act in the best interest of their clients and avoid any conflict of interest. Fortress Financial Group is an RIA; we are regulated under the Investment Advisors Act of 1940 and held to a fiduciary standard.
Broker-dealers (lots of them out there) are regulated as salespeople under the Securities Exchange Act of 1934 and are held to a “Suitability Standard,” meaning products sold must be suitable for, but not necessarily in, the best interests of the client.
2. How do you get paid?
We are Fee-Only. We are only compensated by an asset under management (AUM) fee.
Some other fee structures you may encounter at other firms include Fee-Based and commission-only. Fee-based advisors may charge an AUM fee and earn commissions for products they sell, such as annuities, life insurance, and some mutual funds.
3. What are my all-in costs?
In addition to our assets under management fee, various investment vehicles (mutual funds, exchange-traded funds, etc.) have internal expenses that are outside our control. We spend time finding fund managers that are cost-effective with quality performance records. We do not receive compensation from any investment vehicle.
4. What are your qualifications?
Every Advisor on the team has successfully completed their Series 65 or 66 exam and has a bachelor’s degree. Together, we have over 45 years of experience. For details on the specific qualifications and credentials of each advisor, please see their personal bio or request a copy of the Investment Advisor Brochure and Supplement (ADV).
5. How will our relationship work?
We begin each new relationship with a 7-step process we call Your Financial Matters. This begins with getting to know you and your goals and ends with a personalized plan that seeks to maximize the likelihood of reaching those goals. From there, we generally meet to review your accounts at least once per year and are in communication with you multiple times throughout the year.
6. What's your investment philosophy?
Each client has their own history, financial circumstances, and goals. We work together to make a plan that you are comfortable with and one that will meet your objectives. We believe in long-term investments with short-term, typically minor, adjustments based on prevailing market conditions.
7. What asset allocation will you use?
Investment allocation also depends on each client. As mentioned previously, we all have unique backgrounds, wants, needs, and desires. We will work together to find something that works best for you.
8. What investment benchmarks do you use?
In our presentations, we generally leverage the Standard & Poor’s 500 (S&P 500) as a benchmark for past stock market performance and the Bloomberg Aggregate Bond Index for bond market performance. Neither are benchmarks we are attempting to outperform. They are merely a gauge of past market performance.
9. Who is your custodian?
Fidelity Investments. You can learn more about our partnership with Fidelity here.
10. What tax implications will I face if I invest with you?
Tax implications are specific to each client. It is something we would analyze and discuss before any major decisions are made. Fortress Financial Group advisors are not tax professionals. We would suggest that you also meet with your tax attorney/accountant to review any tax implications.
Disclosures
Fortress Financial Group, LLC (Fortress) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Fortress and its representatives are properly licensed or exempt from licensure. Please visit www.fortressfg.net for more information.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The Bloomberg Aggregate Bond Index is a broad-based fixed-income index used by bond traders and other managers as a benchmark to measure relative performance.
All indices are unmanaged and may not be invested into directly.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss.
