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Working with an adviser
Financial advisers are the gatekeepers of most
managed accounts, since you purchase the accounts at their recommendation
and own the managed account within a fee-based brokerage account.
The adviser's job is to understand your
current financial situation, long- and short-term goals, and feelings
about investment risk to help you structure a financial plan and
recommend an appropriate asset
allocation. That allocation might include one or
more managed accounts, in combination with individual stocks and
bonds, mutual funds, and possibly more complex securities such
as derivatives.
You're in charge
You might seek this type of adviser relationship
rather than maintaining a traditional commission-based brokerage
account if you prefer to take an active role in building and managing
your portfolio, but want access to professional advice and ongoing
investment management. Fee-based accounts charge a single quarterly
or annual fee based on the value of the assets in your account,
as opposed to commissions for every trade that's executed.
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