Thankfully, many professionals including doctors and lawyers are held to certain standards within their industries that require them to put the interest of their clients first. Professionals that are legally obligated to put their client’s interest first are known as Fiduciaries. However, this standard is not required of all industries.
We have all heard the horror stories of those who were negligent with their client’s trust and did not act in their best interests. For your financial security, it is important to make sure your advisor is interested in your well-being instead of his or her own. Do they get paid only when they sell you an investment product or when they give you advice that fits your needs? Do they receive commissions that are hidden within the product, or are they a fee-only financial planner who clearly shows their fees? Is your planner available for advice on making your entire financial picture better: including retirement planning, investment management, and tax strategies? Or are they available only when you are receiving additional money or a new financial product becomes available?
It is wise to learn about how your financial fees are charged and if the company directing your future has your best interests at heart. Here are a few questions to consider asking your financial professional:
1. Are you held to a fiduciary standard in all dealings with me and my financial affairs?
2. Do you disclose all conflicts of interest, both actual and potential, that exist or might exist in my relationship with you?
3. Do you forego any type of commission-based compensation in favor of receiving all compensation via fees that are fully disclosed?
4. Do you provide full service financial planning services as well as investment advisory services?
At ElderAdo Financial we are fiduciary advisors because we care about our clients and truly want them to succeed in their financial lives. If you would like to learn more about how fiduciary advice can help you contact one of our advisors.