Your Financial Journey Deserves Clarity
Welcome to the Lau Financial Group. We are a small team of dedicated financial professionals whose calling in life is helping others work toward their financial goals. We know that financial decisions can be overwhelming with so many options and moving parts. That is where we come in. We’re here to help you understand your options and choose the path that works for your story. Two options we’d like to explore are brokerage and advisory accounts.
With our combined 46 years of financial knowledge and experience, we can help you develop solid investment plans using one of these strategies depending on your desired level of involvement, affordability, and free structure. We’re here to help you understand the ins and outs of these two potential choices. Review our simple guide, a breakdown of the complexities into clear and understandable terms.
What is a brokerage account?
A brokerage account is a platform for investors to buy and sell securities with limited guidance, typically involving transaction-based fees like commissions. A brokerage account is typically for self-directed investors who prefer flexibility and managing their own investments.i
A brokerage account, in simple terms:
- Service Structure: Self-directed, independent, and trade-focused. You manage your own investments. Beneficial for individuals who make infrequent trades and tend to hold securities for a long time.
- Advice: Limited or no continuous advice provided; you make your own investment decisions.
- Fees: Transaction-based, such as commissions on trades or mark-ups/downs on bonds.
- Target Audience: Investors who prefer a “buy and hold” strategy, want to manage their portfolios themselves, and don’t need ongoing professional consultation. A financial professional is available for advice or to execute specific requests.ii
What is an advisory account?
An advisory account is a relationship-driven service that provides ongoing professional, holistic financial advice and continuous monitoring of a client’s portfolio, often with fees based on a percentage of assets under management (AUM). Advisory accounts are generally suited for investors interested in continuous guidance, portfolio management, while expecting a fiduciary duty from their financial professional.
Examining each more carefully can help you determine which strategy would be most beneficial for you and your financial goals.
An advisory account, in simple terms:
- Service Structure: Collaborative and guided by one of our fiduciary professionals who provide continuous and transparent ongoing guidance and planning. We walk beside you, like a trusted co-pilot, as you travel along on your financial journey.
- Advice: Ongoing investment advice, portfolio management, rebalancing, and goal tracking from an experienced This may be attractive for individuals with a more complex portfolio requiring frequent activity.
- Fees: Typically, an annual fee (paid quarterly or monthly) based on the total value of assets in the account (AUM). The ongoing management included in an advisory account may be more cost-effective than paying commissions for every transaction in a brokerage account.
- Target Audience: Investors who desire continuous advice, regular account monitoring, and professional portfolio management, such as asset allocation and risk management. Individuals can delegate the day-to-day investment decisions to a financial professional who is legally bound to act in their best interest.iii
Which is Right for You and Your Family?
Deciding which type of account is critical for growing your wealth as effectively as possible and avoiding unnecessary missteps.
- Do you enjoy managing your own investments? The autonomy of managing your own investments gives you complete control over your financial decisions. Being in control is empowering, but it is essential to understand that it will take time, research, and
- Do you want help with retirement, legacy, or estate planning?
- Do you prefer occasional support or an ongoing partnership? It depends on your financial situation, goals, and comfort level. It really comes down to your preference, as there is no right or wrong approach when it comes to occasional support or an ongoing partnership.
Choose a brokerage account if: You are an experienced investor comfortable with making your own decisions, have a simple financial strategy, and prefer to pay for trades as they happen.
Choose an advisory account if: You want a professional to manage your portfolio, prefer a comprehensive and ongoing relationship with a financial professional, and are willing to pay an asset-based fee for fiduciary-level advice.vi
How Lau Financial Group supports you – no matter the path.
At Lau Financial Group, we focus on relationship building and getting to know you, not just as a client but as a friend. We want you to trust that we are adamant about managing your portfolio and offering recommendations strictly based on your well-being.
That is something we are sincere about, and we are committed to meeting clients where they are.
Let’s Talk About What Fits Your Story
Benefitting from your financial goals depends on an informed, disciplined, and integrated approach to managing the many facets of your financial life. We are committed to delivering meticulously constructed plans, giving honest advice, and personalized service. Schedule a conversation with your Lau financial professional today.
Sources:
iTrading Fees: What Do Brokers Charge to Trade?
iiWhat is a brokerage account? | Fidelity
iiiAdvisor Account: What It Is, How It Works
ivunderstandingyourrelationship.pdf
