One of the questions we frequently hear with prospective clients asks about safety. Is my money “safe” investing with you versus using a large Wall Street brokerage firm?
We would suggest a client is safer working with a financial planning or investment advisory firm than a large, well-known Wall Street firm. Why? There are checks and balance in place to protect the client that Wall Street firms do not need to adhere to.
Client money MUST be kept at a custodian when working with such firms. The purpose of the custodian is to “house” the money, track it and provide statements directly to the client. The advisor firm does not have direct access to the money.
Wall Street brokerage firms are their own custodians.
Another bonus if your financial planning/investment advisory firm is a fiduciary – no one is trying to sell you something.