Investing can seem daunting, but it’s a crucial step towards financial security. Understanding the basics and finding resources that align with your goals is key. This article explores how NerdWallet partners with Atomic Invest to offer investment advisory services and provides essential information regarding regulations and disclosures.
Understanding NerdWallet’s Investment Advisory Services
NerdWallet collaborates with Atomic Invest, a registered investment adviser with the Securities and Exchange Commission (SEC), to provide investment advisory account options. This partnership allows users to access professional guidance in managing their investments. It’s important to understand the details of this collaboration, including compensation and potential conflicts of interest.
Compensation and Conflicts of Interest
Transparency is paramount in financial relationships. NerdWallet receives compensation ranging from 0% to 0.85% of the assets under management annually, paid monthly, for each client referred to Atomic Invest. Additionally, NerdWallet earns a percentage of the free cash interest accrued by clients. This compensation structure presents a potential conflict of interest, as NerdWallet’s recommendations might be influenced by financial incentives. Furthermore, Atomic Brokerage LLC, an affiliate of Atomic Invest and a registered broker-dealer, provides brokerage services, creating another potential conflict of interest.
Regulatory Information and Disclosures
Atomic Invest and Atomic Brokerage are regulated entities, ensuring compliance with industry standards and investor protection. Atomic Brokerage is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). These memberships provide certain safeguards for investors. Comprehensive disclosures are available to potential investors to clarify the relationship between NerdWallet and Atomic, as well as the services offered. These documents include Form CRS, Form ADV Part 2A, and the Privacy Policy for Atomic Invest, and Form CRS and General Disclosures for Atomic Brokerage. These forms provide detailed information about fees, services, and potential risks. You can verify Atomic Brokerage’s background through FINRA’s BrokerCheck service.
Key Considerations Before Investing
Before making any investment decisions, it’s vital to understand the risks involved. Investments in securities are not insured by the Federal Deposit Insurance Corporation (FDIC), are not bank-guaranteed, and may lose value. Investing always carries inherent risks, including the potential loss of principal. Therefore, aligning your investment choices with your financial objectives and risk tolerance is crucial. Carefully reviewing the fees and expenses associated with any investment is also recommended.
Important Disclaimers
NerdWallet endeavors to provide accurate and current information. However, details may differ from what you find on financial institutions’, service providers’, or specific products’ websites. All financial products, shopping products, and services are presented without warranty. Always review the financial institution’s terms and conditions when evaluating offers. Pre-qualified offers are non-binding. For discrepancies with your credit score or credit report information, contact TransUnion® directly. NerdWallet is not a bank; banking services are provided by Evolve Bank & Trust, Member FDIC. The NerdUp Credit Card is issued by Evolve Bank & Trust under license from MasterCard International Inc. Credit score impact can vary, as credit bureaus determine scores independently based on numerous factors, including financial decisions made with other organizations. NerdWallet Compare, Inc. holds NMLS ID #1617539. Insurance services are offered through NerdWallet Insurance Services, Inc. (CA resident license no. OK92033). California residents: California Finance Lender loans are arranged under the Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812.
