Siena Vs. Broker Comparison

 
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VS

Brokers


FEE ONLY ADVISOR

All investments held at major U.S. brokerage firm and not Siena. Siena founders hold doctoral and other advanced degrees.

VS

COMMISSIONED BROKER

A Broker is known by many names: Fee-Based (not fee-only) Advisor; Investment Advisor; Financial Planner; Manager of Managers/Wrap Account; Retirement (Pension) Planner; etc.


EVIDENCE BASED MANAGEMENT

Concentrate on asset classes which provide 94% of a portfolio’s return.

VS

Active Management

Concentrates on security selection and market timing tactics which provide only about 6% of a portfolio’s return.


FIDUCIARY DUTY TO CLIENT

Highest duty recognized by law.

VS

No Duty To Client

“Caveat Emptor” or Buyer Beware; only “suitability.” Broker’s duty is to their company.


INSTITUTIONAL FUNDS

Wholesale prices

VS

Retail Funds

Highest prices


NO CONFLICTS OF INTEREST

Truly independent and objective

VS

Conflicts of interest with clients

Commissions and products can create conflicts of interests with clients (e.g., one product offers brokers more commission than another).


NO-LOAD FUNDS

VS

Mostly loaded funds (commissions)

Often described as “A”, “B”, or “C” shares.


USES ASSET CLASSES FOR OPTIMAL DIVERSIFICATION WITH LOW TURNOVER

VS

Funds often suffer from style drift with high turnover

e.g., small cap fund purchasing mid caps to chase returns.


NO INSURANCE PRODUCTS

Insurance is not an investment.

VS

Many insurance-based products

Annuities, cash value life insurance, etc.


NO SURRENDER CHARGE OR PERIOD

VS

Often very high surrender charges

e.g., annuities as much as 10%; Surrender periods can be as long as 10 years.