Despite the (seemingly) parade of negative news we seem to get these days, 2012 may be itching to surprise you.

Despite every reason to sell, professional investors continued to support equity prices into 2012.  Why?  It leads me to two conclusions:

1.  The economy isn't as bad as you think, and...

2.  Market prices are low enough to justify the news and may continue to reflect improving conditions.

It is worthwhile to note that we just experienced our 22nd straight month of positive job growth, and that corporate balance sheets are in great shape.  

With foreign market growth slowing, many investors will seek out mature, fairly priced markets in which to keep their funds.  This makes the US a very attractive option given the fact that prices are not excessive relative to market historical valuations.

Our contact information:
612-251-3405
mat@sovereignwealthsolutions.com

Sovereign Focus

January 2012

 Teach.  Wealth.  Innovation.

Why you should be working with a "RIA."

There is a world of difference between a broker and a Registered Independent Advisor.  (RIA)

Responsibilities & Duties.

For starters, a RIA has the stated duty of carrying "fiduciary" responsibility for clients. This simply means that every decision a RIA makes must be the right one for the client's ENTIRE applicable financial picture.  A broker must only meet "suitability" standard - meaning that the investment sold must be appropriate for the client at that time.  (Not the same thing!)

How Fees are Paid.

A RIA is not allowed to charge commissions for their money management services.  Rather they are allowed to charge a fee for advice or assets under advisement.  This is a huge difference as it removes any incentive for the advisor to take excessive risk or unnecessarily move assets around to generate commission.

An Advisor - Not a "gatherer."

Many commissioned brokers are simply in the business of "gathering" assets and delegating the actual management of the funds to mutual fund managers.  While this is not unethical or illegal, it allows the broker to generate fees regardless of how much they grow the wealth of their clients.  The advisor however, can only get paid if they help you grow your wealth.

We are firm believers in the value of an independent RIA status!  We believe that it serves our clients' best interests, and hope that you'll consider working with a true financial advisor.