What is An Investment Advisor?

What is an Investment Advisor?

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

Why Use an Investment Advisor?

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 foundation for managing the funds an individual will rely on for their future security. Our clients look to us for assistance 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 like CNBC have made information about companies much more available, the real information upon which investment decisions should be based must still be obtained through direct contact with companies, extensive research, and skilled analysis. Once news about a company has reached CNBC or the Internet it is usually old news among experienced investment analysts.
  • Proven Track Record: We find that many or 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 Upon Expertise: Our organization and our research department, includes 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 a RIA?

What is a Registered Investment Advisor (RIA)?

Under the Investment Advisers Act of 1940, as amended, an Investment Advisor 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 Investment Advisor:

  • Registers either with their state or the SEC by filing 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 to custody assets and to settle and/or to execute trades

This registration does not mean that the person is recommended by the SEC, 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?

What is a CPA?

A CPA is much more than its definition of Certified Public Accountant. The term certified refers to the licensing to carry on business as a CPA and meeting the standards as promulgated by the American Institute of CPAs and the various state societies.

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 which performs examinations of financial statements and renders a report upon them. The term public accountant refers to the role as 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 certifed and public accountant. A CPA is a very trusted advisor of both individuals and of 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 are 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 just indirectly related to the traditional role of an accountant. The CPA’s role has been quickly expanding, and one leading CPA proposed that the term CPA more appropriately stand for 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 moniker CPA.

One preliminary recommendation of the AICPA for a new term to encompass CPAs worldwide has met with much criticism within the industry. Stay tuned for further developments. 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 who has helped shape it.

Investment Philosophy

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 to build the framework for your Fiduciary relationship. This framework becomes our guide in developing the asset allocation strategy and in selecting the individual securities that will make up your portfolio.

At Barre & Company LLC, we work closely with each client. Our main responsibilities include not only for managing your portfolio but also managing all other aspects of our client relationship. 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 item of consideration 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 Advisor?

Independent Financial Advisor

An independent financial advisor 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. We look at the criteria that will benefit you: service, the financial strength of the provider, charges and costs, past performance and so on.

The Benefits of Working With An Independent Financial Advisor

An independent financial advisor is a professional practitioner who functions in a conflict-free environment. The benefits of using the services of an independent financial advisor accrue to the investor 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 advisors.

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, to sell you proprietary products.

When assessing your portfolio’s performance, we can use objective criteria to gauge the performance of each investment. An expert financial advisor 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 independence is essential.