Three Things To Know When Selecting a Financial Advisor
The Security and Exchange Committee (SEC) recently proposed requiring a variety of new disclosures to be made by financial industry professionals so that investors can better understand their relationships with their service providers. In light of these proposals, we selected these three questions to ask when choosing a financial advisor.
Is the advisor an acknowledged fiduciary?
The SEC’s proposals recognize that not everyone in the financial services industry is a fiduciary. With ongoing duties of care and loyalty, a fiduciary is required to act in your best interest above their own financial gain when providing investment advice. Ask for credentials and acknowledgment of fiduciary status.
How is the advisor paid for their services?
Understand how much the advisor will be paid and how they are paid: fee-only, commission-only or a combination. Know what investment products are being suggested or used, how they are managed, and how they may impact your overall costs.
Does the advisor have any conflicts of interest?
Investigate the background and certifications of potential advisors. Tools like FINRA’s BrokerCheck show any complaints and years of service for registered investment advisors and brokers. Ask about industry affiliations that might cloud an advisor’s recommendations about securities or other service providers.
NEWS AND BLOG
2020 Contribution Limit Changes & the Secure Act
Understanding the changes for 2020 so you can maximize your retirement There are some significant changes to your retirement plans starting January 1, 2020. Between the Internal Revenue Service announcing cost-of-living adjustments for tax year 2020 and the new Secure...
5 Ways to Build A Better Tax Plan
It's never too early to make your tax plans. It's important that as you build your plan, you think about some strategies to reduce or defer your taxes now or in the future. Here are some strategies to consider helping your financial plan become more tax-efficient: Tax...
Market Corrections are Healthy and Beneficial
Because they keep bubbles from forming – but only if you’re prepared With the stock market’s historic growth that began in early 2009, many believe a 10% pullback may be a healthy thing. Such a drop is not horribly painful, by historical standards, and smart investors...