When Choosing a Financial Advisor, Make Sure You Know Their Standard of Care

Thinking of hiring a financial advisor to help with your retirement planning? Before you do, make certain you’re choosing the professional who will always put your interests first. The surprising truth is, not all financial advisors are held to the same standard of care. Some are able to blur the lines between advising and selling, while others follow strict ethical guidelines and specific laws to ensure objectivity and transparency. In this blog post, we’ll review standards of care for financial advising and explain how they determine the manner in which advisors make their investment recommendations. We’ll also share tips on how to select a financial advisor who follows the highest standard of care. Let’s start with a summary of the two standards: suitability and fiduciary.   The Suitability Standard A financial advisor who adheres to the suitability standard can more accurately be described as an investment broker. The broker recommends financial products that are suitable...

Read More

Fee-Based vs. Fee-Only: How Your Advisor Gets Paid Can Impact Your Retirement

For decades, you planned ahead and saved. You dutifully contributed to your 401(k) and meticulously researched financial strategies that paid off. Your savvy investments helped you build the financial security you enjoy today. And now that retirement is a reality, you want to make sure your hard-earned nest egg will last. You need a financial advisor who will help you turn your retirement savings into a steady stream of ample income for decades to come. But what makes one financial advisor better than the next? Is there a specific type to look for? In fact, there are several things to be aware of before hiring a professional. One key consideration is compensation, or the manner in which an advisor gets paid for their services. In this post, we’ll look at how financial advisors are typically compensated and the impact this can have on how they serve their clients.   Two Types of Fee Structures In...

Read More