A full service broker provides a number of services to their clients. The services can include researching stocks, giving advice on stocks, and also doing the actual investing. These individuals can also assist in retirement planning, can provide tax assistance, and a number of other financial services.
The goal of a full service broker is to provide individuals with the financial guidance they need to make informed financial decisions. For instance, an individual wishing to invest some of their extra money may employ the services of a broker so that they can invest in the right stocks and invest the right amount of their money to achieve a maximum average annual return. The idea behind investing is to not invest more than what one can afford. A broker can help maximize the amount a person can invest by also helping with other aspects of their financial life.
May who try to invest on their own tend to invest too much of their money and experience losses. If they don't invest too much, they tend to lack the necessary research to ensure the stock being invested in is a safe one. Watching stock throughout the day, every day, can also be daunting.
Full service brokers offer a wide range of investment products so a person can prepare to have a much better financial future than what they are experiencing at the moment. You may find that instead of offering limited services, brokers offering full services also offer insurance and derivatives. In other words, they offer a variety of financial products.
As for the cost, full service costs more than a discount brokerage service, but the options are plentiful and a lot of work is done for you in regards to your finances. It is possible for you to have a number of financial products under the same roof rather than having them scattered throughout a number of firms.
In regards to how fees are charged, they are charged based on how much you trade rather than how your portfolio performs. It is important to note, however, that the higher fee comes with extensive research in finding the best investments for your portfolio.  Although the fee based advisor is not being paid based on your portfolio's returns, keep in mind that the reputation of the firm is at stake. They will work hard for you, otherwise they wouldn't offer so many services.
So why should you choose a full service broker? You should choose such an individual to work for you when you want to maximize your current earnings and make the most of the money that you have. If you are concerned about your future after retirement, you want to consult with a broker.
Retirement is one of the most common reasons as to why individuals consult with full service brokers. They want to make sure that they are going to have enough income coming in. In a lot of cases, there are many who won't bring in enough after retirement, so such investments as IRAs can prove to be useful in ensuring enough income is received after retirement. This is especially important for the younger working class now who may possibly not have access to social security benefits when they retire or will have to wait longer for those benefits than what retirees do now.
If you want to maximize your earnings now, have a number of financial products under the same roof, and receive an objective opinion about your finances, then considering a full service broker to help you have the things in life you have always wanted will be worth your while.
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