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What Type of Advisor Can You Better Trust


A relatively small percentage of financial advisors actually get paid exclusively by the clients who receive their advice. The majority earn some or all of their income by selling mutual funds, annuities, insurance, and other financial products. When advisors are also salespeople, they bring a silent third party into the relationship between advisor and client. Instead of working solely for the client as your financial advisor, brokers have a simultaneous obligation to serve the bottom-line interests of the brokerage firm, bank, or insurance companies for whom they work.

In a commission-based system, brokers must often achieve sales quotas, deadlines, and incentives which can result in biased advice, shortcuts, and transactions contrary to ‘client-first’ principles. While most brokers will make an honest effort to provide excellent service to their clients, the out-of-date commission system is an obstacle to giving completely objective advice.

Registered Investment Advisor (RIA)

As a commitment in our registration with the Securities & Exchange Commission (SEC), Madden Funds Management (Madden) is an RIA with a fiduciary duty (legal obligation) to act in the best interests of the client at all times. RIAs are paid an asset-based fee, so their interests are directly aligned with the clients—as a client’s portfolio grows the RIA’s fee grows. RIAs provide their clients with a written disclosure statement at the start of a relationship. The disclosure statement details exactly how the investment advisor is compensated and does business. Brokers are not required to provide clients with any comparable type of disclosure.

Madden’s Pledge to Its Clients

As your financial advisors, Madden pledges to:

  • Adhere to the highest standards of ethical behavior and fiduciary responsibility.
  • Employ a team of talented, hardworking, and friendly professionals.
  • Communicate candidly with you regarding all aspects of your financial life.
  • Help you set realistic financial goals and instill the discipline to achieve them.
  • Always put your interests first.
  • Accept no compensation that impairs our ability to give you unbiased advice.
  • Continually educate you and ourselves regarding financial markets—both past and present.
  • Remain vigilant about minimizing fund expenses, transaction costs, and taxes.
  • Invest our personal and family assets in a manner consistent with your investments.
  • Keep a long-term perspective.