Have you ever felt like someone had their hands in your pockets taking some of your hard earned saving dollars away from you? This uneasy feeling you were having could be more real than you think. And on top of this, it could be coming from an unexpected source. It could be your financial advisor. This is why finding a financial fiduciary to work with you on your finances is important.
The main culprit that could be stealing your saving dollars straight from your pockets could be a conflict of interest. Watch this video to see an example of a conflict of interest.
https://www.youtube.com/watch?v=dBs6H1P7Wd0&feature=youtu.be
As you can see, when you find a fee-only financial advisor, you are selecting a fiduciary who has your best interest in mind.
You select a financial fiduciary to avoid these back door payments:
- Loads
- Additional fees
My wife and I were at a dinner party recently and the question came up about what I did for a living. When my wife stated I was a Fee-Only financial advisor the person stated, “Why does that matter?” They thought their financial advisor deserved to make some money. They did not see the importance of getting robust investment advice that was free of conflicts of interests. For me, I see a big difference in someone making a fair living and someone making a killing at my expense. I think when given the opportunity to see how a conflict of interests can impact your financial future. Most of you will readily come to the same conclusion. I want to get the best financial advice for me.
I want you to imagine if we took this idea of, “Why does that matter?” to the professions of physicians and attorneys. I want you to think of going to the doctor seeking treatment for a heart condition. After seeking their advice, the cardiologist gave you a treatment that made him the most money without regard to what was in your best interests. Next, I want you to consider going to an attorney to request assistance about a legal issue. Upon your request, you get advice from the lawyer that he knew would enrich his practice and maybe provide you with the protections you were seeking. In both of these examples, I think everyone sees the need for the fiduciary standard of care. When it comes to finances, I think everyone needs the same standard of care.
I am not saying that everyone that is not a fee-only advisor is giving you biased advisor, but why risk it. When it comes to your retirement savings, it is in your best interest to get advice that is free of conflicts of interests.
Is your financial advisor offering you advice as a fiduciary? If you are not sure, I recommend that you ask them. They should be able to respond with a simple, “yes”. If not, I think maybe you ought to be concerned.
Do you think finding a Fee-Only advisor matters?
Author
Isaac is a Fee-Only (no products sold) Certified Financial Planner® Practitioner. Isaac founded Stalwart Financial Planning with offices in Fayetteville NC and Durham NC. Isaac provides comprehensive planning and investment management services to individuals from all walks of life. Isaac can be reached by phone at 910-867-8464, or by email (iallen@StalwartPlanning.com). Visit him at Stawart Financial Planning www.StalwartPlanning.com.