In a recent article on the blog, I Heart Wall Street, the topic of broker versus adviser was brought up yet again. This is a reoccurring topic within the industry, and it’s mostly due to the continued confusion surrounding it. We feel this is a very important topic for investors to research.
The primary difference between a broker and an investment adviser is the fiduciary obligation that an adviser has to their clients. The article went on to say that professionals in the industry tend to confuse investors with a number of different titles that sound similar, but mean something different. For example:
Your friendly neighborhood broker is typically called a Financial Advisor. Not an Investment Adviser. Or Financial Adviser. At least not always. And there’s a good reason. Their role is as chameleon-like as their title, changing minute to minute & without having to tell you. Slippery.
We here at Mullooly Asset Management are a Fee-Only Investment Advisory firm, and we want all of our clients to understand the difference between a broker, and an adviser. If you have any questions about the differences between the two, please feel free to call us at (732) 223-9000!