Investment Accounts Decision Steps
Step 1 – Determine most appropriate account taxability type(s) and amounts to use in each (see account taxability type chart below).
Step 2 - Determine most appropriate account structure type (e.g. "advisory" vs. "brokerage"). See the chart and attachment below for more explanation.
Step 3 – Determine most appropriate asset classes and percentages to use within each account
Step 4 – Recommend competitive investments within each asset class for each account
Step 5 – Repeat the above at least annually (more frequently, if desired or warranted by circumstances within or outside of your control)
Account Taxability Types (based on current federal tax law in most, but not all situations)
Account Structure Types (based on current regulation)
Advisory Brokerage Fiduciary obligation to client by advisor “Suitability” requirement to client by advisor Ongoing advice to client required by advisor Advice given on a transaction basis Fees based on a % of assets under management (AUM), commissions waived Fees are commissions paid on a transaction-by-transaction basis