Do you have a true financial advisor?
Do you have a true financial advisor?
Fiduciary A true financial advisor is a fiduciary for you. A fiduciary manages another party’s assets and has legal and ethical obligation to put the other party’s interest’s first. For a financial advisor, that means helping a client make decisions that are in his /her best interest, even if it means reduced compensation or no compensation for the advisor.
Not all financial advisors are fiduciaries. The term financial advisor is used loosely in the financial and insurance industries. Just because people call themselves a financial advisor, it does not mean they are a fiduciary looking out for your best interests and legally for putting your interests first.
Certified Financial Planner™ A true financial advisor is a CFP® professional. The CFP® Board of Standards is similar to the Medical Boards in the regard they are overseeing the advisor and his practices to insure clients are receiving true un-biased advice. A CFP® professional knows and understands the importance of providing the best financial advice suited to your specific needs and not his/her financial pocket books.
Helpful Hints for Selecting a True Financial Advisor
Determine if your advisor has a CFP® designation or holds a Series 65 or 66 securities license by going to www.brokercheck.finra.org or look for the CFP® letters behind his/ her name. If you are not sure, ask.
Does your advisor discuss multiple products and strategies with you and provide the pros and cons to each option? Certain commissionable products do not require the advisor to act as a fiduciary, but if your advisor is trying to make the case for them, be sure you understand why it is the best option.
Does your advisor share how he/she is compensated and by how much for each product being recommended? A true, “fiduciary” will share with you how much he/ she will earn from you.
CFP® STATISTICS
Approximately 20% of financial advisors in the U.S. are CFP® professionals.
73,684 CFP® professionals nationwide.
711 CFP® professionals in Kansas.
Information provided by www.cfp.net as of 12/31/15
(Investment advisory services offered through Cambridge Investment Research Advisors, a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Cambridge and Tucker Financial Services are not affiliated. 5835 SW 29th St, Ste 201, Topeka, KS 66614)
