Important Questions

Q?Why go with an Registered Investment Advisor (RIA)?

1) Objective Advice & Analysis
2) Greater investment selection
3) Flexibility – No one-size fits all
4) Fee-Based Money Management – Incentivized to do well
- No conflicts of interest
- No investment list to push
- No investment product commissions
- No surrender charges or high fees

Q?Who are our clients?

1) Persons dissatisfied with their current portfolio management
2) Persons looking to take targeted control of their financial future
3) Persons who want to know their investments are being actively monitored and effectively invested
4) Persons looking to consolidate their accounts for efficient management
5) Persons looking for a trusted financial advisor relationship

Q?What is the turnover rate for financial advisors?

Issue
Only 15% of new financial advisors make it through their 4th year (Source: CBM Group)

Solution
Make sure you hire a financial advisor with at least 5 years of experience to ensure longevity in the business.

Fact
The average experience of financial advisors at Allgen is 11 years.

Q?How to go about choosing a financial advisor?

Issue
The traditional method for providing financial services is based on a transactional relationship whereby advisors get compensated based on transactions (commissions). Thereby, the more transactions the greater the compensation, leading to a potential conflict of interest and tension between the advisor and the clients’ best interest

Solution
Make sure you hire a financial advisor that is compensated on the quality of the advice and the effectiveness of the portfolio management. This is typically known as a fee-based or fee-only relationship whereby the compensation is predetermined and clearly disclosed.

Fact
Allgen is a Registered Investment Advisor that is compensated by fees collected for service either through financial planning services or investment management services. Our annual compensation is directly tied to the performance of our clients’ portfolios, therefore providing a vested interest in the preservation and growth of clients’ assets.

Q?What can a consumer do in light of the recent financial crisis?

Issue
The financial crisis of 2008 has shaken consumer confidence in financial institutions as companies such as Countrywide Financial, Bear Stearns, Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, Washington Mutual, Wachovia and AIG all went defunct.

Solution
Question and research the fiscal policies and track record of institutions before placing one’s monies with them

Fact
Charles Schwab is one of the select few financial institutions that can claim not having one quarter of losses for the last 5 years even during the financial meltdown of 2008 due to conservative fiscal policies