THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
Brokerage vs. RIA: Is There Really a Difference?
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In this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Priscilla Brehm to discuss the differences between brokerage firms and RIAs (Registered Investment Advisors).
Priscilla and Chris encourage listeners to understand how compensation works when choosing between an RIA and brokerage firms, as brokerages often compensate their advisors based on transactions, which can lead to potential conflicts of interest. On the other hand, RIAs are generally compensated through a fee structure, which may align the advisor’s incentives more closely with the client’s success. Furthermore, listeners should understand the investment philosophy of the advisor, whether the advisor requires the client’s approval for every transaction, and whether the advisor acts as a fiduciary since fiduciaries are legally obligated to put their clients’ interest ahead of their own.