It has been difficult to find a trustworthy financial advisor. An appeals court recently overturned the Labor Department's escrow rule, further confusing financial consumers. It is very important to know whether your independent financial advisory is acting as a trustee for you or is looking for an investment that is suitable for you.
It's also important to know if this is a trustworthy person who understands your needs, offers a touch-friendly approach, and has the experience you are looking for for your particular situation. To help you navigate your sometimes stressful search, we've put together the top five most recommended questions when looking for a financial advisor.
Trust standards require consultants by law to put your interests ahead of theirs. Trust standards consultants should raise conflicts of interest and let you know whether they have benefited from product or other professional recommendations. You must be transparent about the fees the counselor receives for this board.
In contrast, fitness standards are those that require advisors to offer the right investment product for you. There is no standard for concluding that investing will help you achieve your goals or that it is your best law to do so. Additionally, there is no need to fully disclose a conflict of interest, so advisers may be able to recommend products that may offer themselves higher commissions than similar products at a lower cost.
There are good and bad advisors who work fiducially and appropriately. We work to the standards of trust and value the trust we know.