Empirical evidence* has demonstrated individual investors are not very well equipped, and certainly not effective, in managing their own investment portfolios. Working with a professional wealth manager is one the easiest methods of improving investor performance. This choice can remove the emotional attachment you have from your investments. Professional wealth managers have the time and experience to help institute an investment plan and stick to a specific strategy. Most importantly, a wealth manager can help talk you off the ledge during a poor performing period of the market, when the average investor would be selling his investments rather than investing additional funds. The key is to stay disciplined, as reacting can hurt performance.
Performance of the S&P 500 Index, 1970-2014**
*DALBAR, Inc. – Quantitative Analysis of Investor Behavior
**Performance data for 1/70-8/08 provided by Center for Research in Security Prices, University of Chicago. Performance 9/08-12/14 provided by Bloomberg.
Yes – Princeton Global believes and has since 2008 worked as a TRUE fiduciary for all of our clients. We accept no commissions or fees from outside parties. We provide unbiased investment guidance that is always in your best interest.
Princeton Global charges simply a management fee on our portfolios. Clients have all of our services at hand included in this fee. We utilize individual stocks and bonds and where appropriate low-cost exchange traded funds creating a total “all-in” fee that keeps more money in your pocket.
The investment team at Princeton Global is comprised of former analysts and portfolio managers of mutual funds at prestigious institutions. Direct from the source investing.
If you are paying much more than 1% “all-in” on the portfolio, then most likely yes. The fees you pay each year have a negative compounding effect on the total value of your portfolio. There are charts on our website that show the average fee at many large institutions.
The fiduciary standard is different from the “suitability” standard that many banks and brokerage firms use. When using suitability, an advisor can consider their interests ahead of yours. The fiduciary standard is a legal requirement that your best interests are always placed first.
The new law went into partial effect June 9, 2017 with full rollout in early 2018. It is our opinion that this law is well intended but falls short in protecting consumers. The biggest concern is the law only applies to retirement accounts. This leaves you open to risk when dealing with an a traditional bank or brokerage firm — you could sit down with $5,000,000 cash from selling a business and a $25,000 IRA. That “broker” only has to act as a fiduciary on the relatively small IRA and is still allowed to follow the suitability standard on your cash.
The second hole, is the best interest contract exemption (BICE) form — this is a simple acknowledge that allows the advisor to sign off that they won’t be acting as a fiduciary. When you sign account contracts with an advisor there is a lot of fine print and this form leaves clients open to considerable risk.
Princeton Global Asset Management is a Registered Investment Advisor (RIA) and will always adhere to the fiduciary standard on all accounts.