Siena Vs. Broker Comparison
FEE ONLY ADVISOR
All investments held at major U.S. brokerage firm and not Siena. Siena founders hold doctoral and other advanced degrees.
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.
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.
No Duty To Client
“Caveat Emptor” or Buyer Beware; only “suitability.” Broker’s duty is to their company.
NO CONFLICTS OF INTEREST
Truly independent and objective
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).
Mostly loaded funds (commissions)
Often described as “A”, “B”, or “C” shares.
USES ASSET CLASSES FOR OPTIMAL DIVERSIFICATION WITH LOW TURNOVER
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.
Many insurance-based products
Annuities, cash value life insurance, etc.
NO SURRENDER CHARGE OR PERIOD
Often very high surrender charges
e.g., annuities as much as 10%; Surrender periods can be as long as 10 years.