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UlTImATE SUccESS GUIdE

Advisor Representatives. In addition to passing the necessary require-
ments to become an Investment Advisor Representative, many of these
advisors are also “dually licensed” so they can help their clients with
the investment and insurance services they wish to obtain. This allows
Investment Advisor Representatives to provide holistic financial plan-
ning services to their clients.

So when you are in need of a trusted advisor, remember there are only
three types of federally and state-recognized advisors. Two of the three
types, Registered Representatives and Insurance Agents, by license le-
gally represent their company. They are paid by commissions to sell you
their company’s products. Investment Advisor Representatives legally
represent you and your best interests. They are paid to advise and not
to sell. Because of this, most people pay fewer fees when working with
an Investment Advisor Representative than when working with a Reg-
istered Representative.

The 3 Types of Federal & State Recognized Advisors

Advisor

Contractually

Represents

Compensated ByProducts Offered

Registered

Representatives

A Broker

Dealer

Selling

Investment

Products

Limited to Broker

Dealer offerings

Insurance

Agents

An Insurance

Company

Selling Insurance

Products

Limited to

Insurance Company

offerings

Registered

Investment

Advisors

The Client

Advising and

Monitoring

Unlimited access

to most financial

products and services

soMe FInAl thoUghts ABoUt the

vAlUe oF A tRUsteD ADvIsoR

Sound financial advice is not expensive. An effective advisor can add val-
ue equal to many times his fee simply by preventing you from making
some very poor investment decisions (like chasing yesterday’s hot sector).