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What is Wealth Management
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Wealth Management is the process of systematically and simultaneously building wealth and protecting it. It involves expertise in: financial planning, asset management, insurance, tax management, and estate planning. Generally, Wealth Management is as concerned with the defensive nature of protecting assets as it is with building asset value. Due to its more complex nature, it is typically not available to individuals with low asset values.
Beware! Because there have been less than favorable press associated with stock brokers, many Wealth Management companies are merely a re-labeled stock broker. Typically stock brokers have a reduced scope and talent set than a person providing Wealth Management services. How can you tell the difference? Ask your broker/ financial advisor how they are compensated. Also ask them if they are governed by the Investment Advisor Act of 1940. Investment Advisor Representatives (those licensed financial advisors that work for a Registered Investment Advisor practice) must comply with the rules and regulations of the Investment Advisor Act of 1940, whereas brokers may not (NOTE: as of January 2006, a new SEC rule goes into effect allowing brokers to act as fiduciaries in some circumstances and avoid acting as such in others). This matters because in general terms, the Investment Advisor Act of 1940 dictates that advisors act in the best interests of the client- in other words, as a Fiduciary. Brokers don't always have to meet this standard of care - unless they are acting in a role that demands it. Brokers should make it clear (to a client) about the capacity under which they are operating.
If your broker or advisor indicate they are paid on commission, they are almost certainly an NASD Series 7 (stock broker) or Series 6 licensed broker. Ask them to elaborate on their financial planning education and whether they offer services based on developing a comprehensive financial plan that integrates views on tax , estate, investment, insurance planning, and asset protection. Many brokers will have you spend an hour filling out a brief questionnaire and deliver a financial plan from their company's cookie cutter financial plan-generating application. Do you honestly believe an hour spent with you, and the use of a company cookie - cutter financial plan generator will meet your needs?
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Disclosure
Doctorwealth.com SM, LLC (DWC) is a Registered Investment Advisory firm located in Cary, North Carolina. We do not provide investment advice from this website. The website is intended to provide general information about our services. The website provides copies of articles we have published and retained copyright. Advice is only provided when:
1. We provide a disclosure statement to the client.
2. Execution of Engagement Agreement, Investment Advisory Agreement, and Asset Management Agreement is done.
3. Payment of a planning or investment advisory fee is received.
DWC will conduct business in states where it is registered. DWC will provide a copy of our fee schedule upon written request. We make no representation for the accuracy of information provided on sites linked to our website.
DWC uses Ameritrade for custody and brokerage services. DWC receives no remuneration from Ameritrade indirectly for services provided to clients. All fees (custody, trading, any other) charged by Ameritrade on the client’s account are direct, and in no way involve DWC. DWC will not have custody and will not have discretion of client assets.
DWC may recommend Mutual Funds from Dimensional Fund Advisors (DFA). DWC receives no remuneration whatsoever from DFA. DWC is in no way affiliated with DFA. Doctorwealth.com LLC is owned by Triangle Wealth Management LLC.
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