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What is an Investment Adviser?

An investment adviser is an individual or firm that assists in the development and implementation of a financial or investment plan.

Why use an investment adviser?

There are many reasons for utilizing a professional firm to assist you in managing your investments or retirement funds. Over the years, we have found that the reasons our clients have utilized our services include:

  • Potential personal risk: Experience and skill should be the foundation for managing the funds an individual will rely on for their future security. Our clients look to us for our experience rather than risk their future on their own endeavors alone.
  • Lack of personal time: Properly managing an investment program takes time and experience that most people do not have or do not wish to commit.
  • Lack of information: Although the internet and financial programs on CNBC have made information about companies much more available, the information upon which investment decisions should be based should be obtained through direct contact with companies, extensive research, and skilled analysis. Once news about a company has reached CNBC or other internet sources, it is usually old news among experienced investment analysts.
  • Proven track record: We find that many of our clients select our services because of our performance record over time. Although past history is no guarantee of future returns, joining an established, proven investment program adds a degree of confidence going forward.
  • Personal financial services: Since we maintain a close, personal relationship with our clients, we are often asked for advice on a broad range of financial matters. We can help a client in the overall coordination of their retirement and investment planning and management.
  • Leveraging our expertise: Our organization and our research department has extensive experience and expertise built upon a variety of business backgrounds and disciplines. In effect, our clients are leveraging their investing efforts on our overall skill and experience by entrusting us with the management of their investments.

Our investment process:

  • Step 1: Determine your risk profile – Through personal consultations with you, we will develop a personal profile of your individual investment needs and objectives, time horizon, and attitude toward investing. If needed, we will also conduct a full financial plan, including retirement analysis, tax planning, estate planning, and much more.
  • Step 2: Develop your asset allocation policy – We will develop a personalized asset allocation policy based on the needs and objectives identified in your personal profile. This policy will be designed to maximize your investment returns, relative to your risk tolerance, through careful, diversified allocation of your investments.
  • Step 3: Implement your policy – Your asset allocation policy will be implemented by investing in a well-diversified portfolio that spans multiple asset classes and investment styles. Assets within your portfolio will be managed by some of the country’s preeminent money management firms, many of which are not accessible to individual investors.
  • Step 4: Monitor and rebalance your portfolio – Your investment portfolio will be carefully monitored on an ongoing basis to ensure that it remains consistent with your agreed-upon asset allocation policy. If the relative value of investments in your portfolio changes enough to become inconsistent with this policy, we will reallocate funds within your portfolio as needed.
  • Step 5: Report the results – We will communicate with you on a regular basis and provide a comprehensive reporting package, such as account-level performance reports and statements providing details of your account, including total asset value and a record of all transactions that occurred during the reporting period.

What is an RIA?

Under the Investment Advisers Act of 1940, as amended, an investment adviser is “any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analysis or reports concerning securities…”

A typical registered investment adviser (RIA):

  • Registers either with their state or the Securities and Exchange Commission (SEC) by filing the Uniform Application for Investment Adviser Registration (Form ADV) and meeting other requirements
  • Evaluates client’s needs and risk tolerance, and advises on appropriate investments
  • Monitors client’s portfolio. Regular performance reports may be provided
  • May provide other wealth management services, such as retirement, trust, tax, charitable giving, estate and financial planning services
  • Uses a broker/dealer and/or bank as a custodian of assets and to settle and/or execute trades

This registration does not mean that the person is recommended by the SEC, but it simply means that they are regulated by the SEC.

In general, an RIA with more than $25 million under management must register with the SEC and those managing less than $25 million are registered at the state level.

What is a CPA?

A CPA is much more than its definition of a Certified Public Accountant. The term “Certified” refers to the licensing to practice as a CPA and meeting the standards as promulgated by the American Institute of Certified Public Accountants (AICPA) in order to obtain state licensing.

To be initially licensed, an individual must pass a rigorous examination, which is uniform among the states, and then obtain a certain amount of experience working for a firm that performs examinations of financial statements and renders a report upon them. The term “Public Accountant” refers to the role of an accountant who handles recordkeeping and reporting matters for the public. However, the term “CPA,” in sum, means to most people much more than these parts of “Certified” and “Public Accountant.” A CPA is a very trusted advisor of both individuals and businesses.

CPAs are relied upon so much because of not only their keen analytical and decision-making skills but also their objectivity, integrity, and dedication to service. Many CPAs provide services well beyond accounting, auditing, and reporting. Some of these services include business and management consulting, information technology consulting, tax planning and preparation, personal financial planning, valuation services, elder care services, and compliance. The consumer often expects a CPA to be proficient at many specializations, even those indirectly related to accounting. The CPA’s role has been quickly expanding, and it has been proposed that the term CPA be defined more appropriately as Certified Professional Advisor. The CPA profession is currently grappling with how best to define the CPA in today’s world and whether to change the CPA definition.

One thing is clear – the CPA is a very valued and trusted advisor and a professional who has not only kept up with the quickly changing world around us but has helped shape it.

Investment Philosophy

Successful investment management relationships begin with a clear understanding of each client’s specific needs, concerns, and long-term objectives. Investment time horizon, income and liquidity requirements, prior investment experiences, and tolerance for risk are all factors that help us build the framework for our fiduciary relationship with you. This framework becomes our guide in developing the asset allocation strategy and selecting the individual securities that will make up your portfolio.

At Barre & Company LLC, we work closely with each client. When establishing a new portfolio and throughout the management process, great care is taken to explain the potential risks and returns of various investments. Asset allocation and diversification are key factors in the overall success of an investment program. Each portfolio is individually managed, providing flexibility in controlling transaction costs and enhancing portfolio tax efficiency.

The result of our close personal contact has created a tradition of long-lasting client relationships. As professionals, we regard the single most important consideration is the responsibility of preserving the confidentiality of all client matters. Our overriding principle, which guides all of our actions, is our responsibility to the client and our true objectivity. Our interaction with you will reflect our honesty and concern for your interest, not ours.

What is an Independent Financial Adviser?

An independent financial adviser is a professional practitioner who functions in a conflict-free environment. Being an independent practice, we are able to offer a wide range of financial advice to our clients and are able to offer totally unbiased advice on all financial matters. The benefits of using the services of an independent financial adviser like Barre & Company LLC will accrue from Day 1 and throughout the relationship. 

When designing your portfolio, we are free to consider all of the thousands of investment alternatives available today. There are no artificial limitations on which investments you can use, since we are independent financial advisers.

When building your portfolio, we can weigh the merits of one investment against another, recommending investments only because they will contribute to the success of your investment strategy. There is no pressure and no incentive for us to sell you proprietary products.

When assessing your portfolio’s performance, we can use objective criteria to gauge the performance of each investment. Our expert financial advisers can help you track the progress of your portfolio toward the financial goals you’ve set and advise you when it is appropriate to make changes and when it’s time to stay put.

We believe independent, conflict-free financial advising is in the best interest of our clients and essential for clients in reaching their financial goals.

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