Why Go Local

Navigating the complexities of personal finance can be a daunting and time-consuming task.  These days, it makes a lot of sense to seek professional help at least for a check-up, but the process of choosing an advisor can be just as tough.  If you are considering using a financial advisor for your personal, non-profit, or business needs, you are surely considering the cost, but have you thought about what those fees actually pay for, or where or to whom they go?
It is important to consider that while their office may be just up the road, and their services may be highly personalized, many advisors are representatives of a much larger organization, with their decision-making headquarters likely based elsewhere.  As such, a significant portion of the advisor’s fees are channeled back to the parent company to pay for management salaries, overhead, for centralized research and other services, and to corporate shareholders.  Akin to the “big box” retail outlets, local consumers’ payments often subsidize far-flung operations.
Competence, service, and cost should always be among your top priorities when choosing an advisor, so if you have a firm that fits the profile above but provides adequate service, great!  But if you have a desire to ‘shop local,’ consider using a Registered Investment Advisor (RIA) with the added benefit of keeping more of your dollars circulating in the local economy.