Creating Wealth and Building opportunities

As efforts by the federal Department of Labor to create a uniform fiduciary standard make their way through the financial services industry, predictions of smaller accounts being abandoned by advisors that can no longer service them are becoming a reality.

The Insured Retirement Institute reported in July 2017 – just one month after the new definition was implemented – that more than 150,000 accounts have been “dumped” by advisors. Other reports that came out this fall estimated close to 700,000 accounts are now orphans.

This trend bothers registered investment advisors such as Ron Medley, the senior portfolio manager for Moloney Securities Asset Management based in Manchester, Missouri whose goal is to provide true fiduciary-style financial guidance to those sincerely seeking it.

“The fear that smaller account holders would be orphaned is coming true,” Medley said.

The definition of the word “orphan” paints a destitute picture of one left without care or guidance. In the financial service world, orphan means an account holder who cannot access the level of expertise that is necessary to make educated choices. And, it is something Medley does not want to see within his industry. He recognizes the business model in which advisors whose only goal is profitability will opt to set firm minimums.

That isn’t for him.

“When anybody has an interest in becoming more educated regarding their finances and is looking for a way forward, I personally welcome that person as a client,” Medley said. “Whether that person is 20 years old with $1,000 to get started or a 40-year-old with a million or someone that just inherited a large sum, there is always an open door for the person who is trying to move themselves forward.”

Education is the key to his business practice, Medley explained.

He recognizes how overwhelming delving in to the world of financial jargon can be for those without background and training. It is one of the reasons he does business by the financial industry’s version of, “how long does it take to eat an elephant?”

The sarcastic common sense answer is, “one bite at a time.”

It translates well to the financial services world: How many decisions does it take to create a secure financial future? Just one at a time, Medley said.

“I work to break it in to manageable chunks,” Medley said. “When dealing with the complicated issues such as estate planning and retirement planning, it is best to make one decision at a time.”

His best advice to clients is something he strives to follow: As you begin to experience success and as you reach yet another level of success, always surround yourself with people that have expertise that you do not have. Continue to learn.

Read more about Ron Medley and Moloney Securities Asset Management online at: www.msam.net