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Brokers Vs Advisors - Why Are There No Movies About Investment Advisors?
ast week somebody asked me easily knew of any movies that featured investment advisors. After thinking about it for a long period, I could not come up with any. Sure there are plenty of movies about brokers like Wall Street, Wolf of Wall Street, Boiler Room, Quest for Happyness or Trading Places. But I possibly could not think of one which depicted an investment advisor.

After having this realization, quickly I realized why this is the case. A movie about brokers is exciting and funny. I spent about 9 years working at broker dealers. While I never experienced the excesses that made those movies great, I understood the mentality of individuals who worked there. Brokers earn money on commissions, so there's huge incentive to sell product to create money. This may cause people to do stuff that they might not ordinarily do.

I cannot imagine just what a movie about an investment advisor would appear to be or how they might even get more than 10 people in the seats. Unless of course the advisor was a secret agent or alien from Mars. Then perhaps you could easily get 30 people in the seats.

The end result is that being a wealth manager isn't exciting. Sure it could be an interesting, intellectually stimulating and fulfilling profession, it generally does not make for an excellent movie. The reason is that wealth management is approximately financial planning, investment management, risk management, and dealing with people. Before I continue I you should discuss the difference between being truly a broker and as an advisor.

Exactly what is a Broker or Registered Representative?

A Registered Representative is really a one who works at a brokerage dealer who has passed the licensing requirements for the series 7 test. This title, registered representative, allows the individual to sell investment products and earn a commission for that sale. These investment products could be stocks, mutual funds, bonds, variable annuities, managed futures hedge funds and more.

The registered representative, or broker because they are also called, has to provide "suitable" investments to his clients. Nonetheless they are not necessary to follow up with the client after the sale. A lot of the brokers provide other services to their clients as well, but it is not required by their license.

What's an Investment Advisor?

An Investment Advisor or Investment Advisor Representative is a one who has passed the series 65 or 66 ensure that you has met the requirements of hawaii or SEC regulators. This person might not earn commissions from investments. They may only earn a fee, paid directly from the clients. This is why they often times are referred to as fee-only advisors.

Investment advisors usually do not receive compensation from anyone but the clients. While there is no incentive to market certain products, the advisory relationship with your client tends to be more holistic. This consists of investment management, financial planning, risk management or other related services. Because fee-only advisors don't get paid commissions on products they sell, frequently they charge for a financial plan.

Investment Advisors may also be considered a fiduciary. This is the high standard of care that's needed is for each client. The standard of care carries through the whole relationship with your client from buying, holding and selling the investments. It is a significant difference between brokers and advisors.

Next time you're browsing the movie selection searching for movies linked to the financial field, consider the ones I have listed above. They are well made movies about the industry with some poetic license and top actors to make things interesting. Whether Long Island Portfolio Management is about insider trading, drug fueled penny stock swindles, or how people go from the ground upwards to greatness, select the movie for what it is extremely than an insight in to the world of investment advisors. If you would like that, you may be searching for a while.
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