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
After the Nest is Empty, It’s Time To Save and Invest
When your children are grown and leave home, you are released from being the financial “provider”: No more bills for everything from food and clothes to visits to the dentist. Along with this “freedom” may come immediate temptation to spend your “extra” money on the...
Breathe for Your Life Health and Well Being
Breath is life. Life is breath. The yoga sages of India have embraced this link for centuries, where conscious breathing has long been an integral part of daily life. More recently, Western researchers have also begun to acknowledge the importance of the breath. As...
Without a Spike in Wages, Inflation is Less Scary
Inflation is clearly a headwind for investors, but it might be more of a breeze Inflation has found its way into the broad economy, partly as a result of all the money that government stimulus created over the past 18 months since the financial crisis brought upon by...