Finding the Right Investment Firm

• Independent Representatives- Almost all receive commissions from whatever product they sell you. They are licensed by a sponsoring broker dealer, who is then paid by large mutual fund companies to sell their funds. Your investment portfolio will most likely not be customized.

• Wirehouses- Examples: Merrill Lynch, Morgan Stanley, Smith Barney, and Goldman Sachs. They are are the largest and highly profitable firms selling securities and different products. The brokers here make their living off of commissions made through selling you various funds.

• Bank Representatives- "Financial Consultants." Often, bankers sell their customers various mutual funds and securities for the seeming ease of consolidating your bank accounts holder with your investment manager. However, banking rarely enhances investment growth.

• Insurance Agents- Often Life Insurance agents selling annuities. While insurance is vital for your financial future, we believe insurance and the investment decisions you make should be separated to provide stronger returns with lower fees. Annuities have 7-10% sales commissions, which basically reaps all the return you would otherwise receive. They are typically seen as poorly suited for anyone in retirement or soon to be retired because of the high taxes, fees, and inflation.

• Regional Broker Dealer Representatives- May seem like your best friend (this is because they do SALES). In the long run, broker dealers' business model focuses more on commissions than client service.

• Bank Trust Departments- While there are many highly qualified investment professionals in this area, fees are typically extremely high and often have hidden fees layered throughout your investment portfolio. On top of this, their investments are usually placed through their own bank funds, which focus more on capital preservation than on asset growth.

• Discount Brokerage Representatives- Examples of this are Charles Schwab and TD Ameritrade. They offer standard asset allocation at reasonable fees, but they may not be beneficial in significant asset growth. If you are a very self-motivated investor and are willing to spend many hours a week researching, implementing, and monitoring your investments, this could be an option for you. If you choose Cornerstone to help you manage your investments, we will do this service for you while using a discount broker to custody your assets.

• Want to see a more specific example of how your money will grow more significantly than our competitors? See it in actual numbers. Understand the difference a few percentage points make.

• Need help in deciding who should manage your investments? Here is a list of things to consider and questions to ask when performing your due diligence.

Source: Barnes Capital, "Choosing an Advisor."