What is an INDEPENDENT FINANCIAL ADVISOR?

FinArc Investments is an independent financial advisor registered with the U.S. Securities and Exchange Commission – a role that is defined in the Investment Advisers Act of 1940 as “a person or firm that, for compensation, is engaged in the act of providing advice, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications.”

Many investment professionals call themselves “advisors,” but there are some important differences. Some advisors are paid for each transaction they complete, which incentivizes a high volume of activity regardless of the investor’s preferred strategy and philosophy. Other advisors are linked with certain businesses and organizations, and as a result they are paid for recommending certain products or services. Potential conflicts of interest like these raise questions about the motivations for related advice.

Independent financial advisors like FinArc are fiduciaries, and are therefore legally obligated to act in our clients’ best interests. While there are many distinct advantages of working with an independent financial advisor, there are some key differences that you should understand as you select a partner to manage your assets:

• Control: With an independent financial advisor, you remain in control of your wealth. You can authorize FinArc to manage all or part of your investment portfolio. Beyond that, you have access to a robust financial goal analysis and other financial advice, as well as introductions to other independent experts in a variety of related fields such as estate planning, taxes, and business succession. This flexibility allows you to customize the combination of resources that is right for you.

• Compensation: Most independent financial advisors, including FinArc, charge fees based on a percentage of your assets under management, meaning that we are aligned in our desire to grow or preserve your portfolio. FinArc is a “fee-only” advisor; in this transparent arrangement, we do not receive commissions or referral fees. FinArc is solely compensated by clients and in a clearly disclosed manner based directly on the assets we are responsible for managing.

• Custodian: As an independent financial advisor, we manage our clients’ assets, but they are safely and securely held in your name by a third-party custodian. Your monthly statements come directly from the custodian and though your primary relationship is with FinArc, you have constant and direct access to your account through the custodian. Though you can choose the custodian you want to use, FinArc routinely recommends Charles Schwab.