OmniDivitia Wealth Management, Inc. - ODWM Blog #fiduciaryOmniDivitia Wealth Management, Inc. - ODWM Blog #fiduciaryhttps://www.omnidivitia.com/blogs/tag/fiduciarySun, 12 Apr 2026 16:10:05 -0700http://zoho.com/sites/<![CDATA[One Size Does Not Fit All... and That's OK]]>https://www.omnidivitia.com/blogs/post/One-Size-Does-Not-Fit-All-and-Thats-OK
Image courtesy of zole4/freedigitalphotos.net

Have you noticed all of the advertisements that essentially say, "We know the answer... the one way you should invest"?  It's a good line for selling something, but could be questionable if you dig deeper.


Given the multitude of perspectives and investor preferences that exist, how can one approach fit everyone?  The answer is simple.  IT CAN'T.


If one approach were deemed to be correct, then logically, it still couldn't work in a marketplace.  For example, if you assume all investors want to be correct, and the correct action were to buy something, there would be no one to buy it from.  If the correct action were to sell something, there would be no one to sell it to.


Solutions are not absolute.  They are relative to your situation.  In my opinion, your success rests in having a plan that helps you understand what tactics you may need to take while being flexible and nimble enough to change as needed. In the beginning of Sun Tzu's   The Art of War , he explains that one must understand:


  • Your Belief System - what you want to accomplish and how you want to do it;
  • The Environment  - what uncontrollable factors may help or hinder you;
  • The Situation - where you are now and what it will take to get you to your goal;
  • Leadership - confidence in your/the decision maker's abilities;
  • Management - the proper use of resources at the appropriate time.

The solutions you choose may change over time due to uncontrollable, changing conditions.  No one solution will fit everything, but you can increase your odds of success by utilizing them properly.

]]>Wed, 12 Feb 2014 11:09:21 -0600<![CDATA["You Can Observe a lot Just By Watching"]]>https://www.omnidivitia.com/blogs/post/You-Can-Observe-a-lot-Just-By-Watching

Baseball legend Yogi Berra was as famous for the things he said as what he did on the field. Many of his quotes don't make sense on one level, and yet they may on another.  For example:

"It ain't over till it's over."

"When you come to a fork in the road, take it."

"This is like deja vu all over again."

"You can observe a lot just by watching."


Berra came to mind recently as I thought of the many conversations over the years with people who think they don't pay any fees on their investments.  On one level, they don't see any cost on their statements, so it must not exist, right?  On another, one man's revenue is another's expense.  If you're not paying anything, then they're not making anything, and I highly doubt businesses function on goodwill alone.  Ignoring the possible types of relationships momentarily (see my previous post,   Form Follows Function ), it's clear that many people don't understand that they are paying fees one way or the other.


To simplify things, I like to break down costs into the following three areas when I'm comparing competing options.


Types of Costs

  1. Compensation to the Representative   = Millions of people in the US go to work for a company, and in exchange for their efforts, they receive compensation.  It is no different with your financial representative.  Whether he/she works for a Registered Investment Advisor or for a Broker-Dealer, your representative is in business to receive compensation.  How they go about seeking profits or providing services may be different, but the goal of every business is to generate profits.  
  2. Costs of the investment product   = These costs may go include several items, such as a markup/markdown, commission, expense ratio, mortality expense, trading costs, or fee.  These costs usually goes to the company for creating and/or distributing the investment product, and may help pay for items such as compensation of their employees, marketing, or overhead.
  3. Recordkeeping or administrative costs   = The firm you deal with tracks and communicates (physically or electronically) details of transactions and of your portfolio through  trade confirmations &/or statements.  Firms incur costs for tracking this information (for example, custodians, transfer agents, and broker-dealers), and often pass on these costs to clients.

I hope you find this post and others in this blog to be both educational and helpful.  Let me know what your thoughts are by posting on either the  LinkedIn   or   Facebook   pages for Locker Wealth Management, by emailing me directly at   alex.locker@lockerwealth.com , or contacting us through our website.


Happy Investing!

]]>Wed, 12 Feb 2014 11:01:16 -0600<![CDATA[Form Follows Function]]>https://www.omnidivitia.com/blogs/post/Form-Follows-Function
Image provided courtesy of Grant Cochrane/ freedigitalphotos.net

Architecture is one area that makes Chicago a world-class city.  One lasting principle of architecture & design that many are familiar with is "Form follows function."  In other words, as Wikipedia puts it, " that the shape of a building or object should be primarily based upon its intended function or purpose."


So, let's talk about this mantra in the context of a four-letter "F" word - fees- as it pertains to both brokerage accounts and advisory relationships.


Brokerage Accounts

A broker is an entity that arranges a transaction between parties and receives a commission for the transaction.  In this scenario, brokers are often motivated to encourage a transaction, as long as it is "suitable."  However,   a broker's obligation is primarily to their employer .  Brokers also have lesser requirements for disclosing conflicts of interest that investment advisors.  You may or may not know the costs of a transaction beforehand.  Some firms offer fixed rate transactions (ex., $15 per trade), others may charge based on the number of shares and liquidity of the investment.  In other cases, costs are layered inside the expense ratio of the investment product.


Advisory Relationships

Investment advisors, by definition, provide advice.   They have a fiduciary responsibility; in other words, their primary obligation is to the client, and they must put the client's interest in front of their own.    In this type of relationship, you may be charged a retainer, a flat fee for planning, or a percentage of the account.  The fee structure is agreed to up front, before services are provided, and in writing.  Any potential conflicts of interests must be disclosed.


In short, how you pay your representative may depend on what you are paying them for.  Ask yourself a few questions in advance of engaging in either type of relationship.  

  • Do you have the time, desire, or experience to manage a portfolio by yourself?
  • Do you just want help with transactions, or are you looking for advice?
  • Are you comfortable working with someone whose obligation is to their employer rather than to you as a client?
  • Do you want to know your cost structure upfront, or would you rather pay-as-you-go?

If you would like to discuss your situation more in depth, click on "Our Website" above and go to the Appointments section to schedule a phone consultation.


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