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Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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Investors Have Most Confidence in Certified Financial Planners to Roll Over IRAs

Investors seek out Independent Certified Financial Planners to roll over their 401(k).

Independent Certified Financial Planners are the preferred advisor to help investors roll over their 401(k) into an IRA, according to a new Millionaire Corner study.

Nearly a third (30 percent) said they selected this type of advisor. A Registered Investment Advisor (RIA) was the second most popular advisor (18 percent) followed closely by a Full-Service Stockbroker (17 percent).

Of those who retain the services of an RIA or a Full-Service Stockbroker, most are retirees, while a Mutual Fund Representative is most likely to be contacted by someone in the process of changing his or her job.

For more than half of investors surveyed (54 percent), referrals from family members, friends or business associates were instrumental in selecting their advisor. Common sources also include an advisor who worked for a previous plan provider (14 percent) and seminars (11 percent).

The IRA market has grown to more than $600 billion and will continue to grow as baby boomers move toward retirement. Despite the devastating impact of the 2008 financial crisis, assets available for rollover were 23 percent higher this year than they were four years ago. But the rollover assets increased at an average annual rate of 5.3 percent since 2007, considerably below the average annual rate of increase seen in years prior to the economic collapse, the report concludes.

Certified Financial Planners have the highest standing among investors. The rigorous coursework and requirements they need to complete before they can be certified as well as the code of ethics that requires them to work in the best financial interests of a client clearly give them the most credibility. CFP certification is awarded by the Certified Financial Planner Board of Standards in Washington, D.C.

An RIA receives compensation for giving advice on investing in securities such as stocks, mutual funds or ETFs. They are generally paid on a percentage of the value of the assets they manage, or an hourly fee, or fixed fee or a commission (if they are also a broker-dealer). They are registered with the Securities and Exchange Commission or a state agency. 

Full Service Brokers buy and sell securities on behalf of clients and typically charge a commission for each trade. They are closely regulated and subject to scrutiny by state security commissioners, as well as the SEC. A self-regulatory body, the Financial Industry Regulatory Authority (FINRA), also provides oversight. Brokers are required to make “suitable” recommendations, but are not bound to a “fiduciary duty.