Have you ever wondered what the difference is between an investment representative, financial advisor, financial planner, wealth manager, or investment broker? Most people who use these titles claim to provide financial advice, but the similarities may stop there. The first step is to ask if your advisor has a fiduciary duty to you. Some advisors are only held to a standard of suitability – which means their advice need only be suitable for you. For example, investments can be considered suitable but not be the best or cheapest option for you. “Advisors” at a broker dealer or who are tied to specific firms will get higher commissions off investments of their own firm so they are incented to recommend these suitable investments. Do you want to settle for suitable?
Listen to or pass on this Fiduciary Video to find out why Timothy Financial Counsel chooses to be a fee-only, hourly-only firm that specializes in providing financial advice that is independent and objective.
Other good questions to ask when you are searching for a financial advisor include:
- Are they fee-only?
- Are they certified and/or licensed?
- Do they have the appropriate education or experience in the financial industry?
- Are they recommended by other professionals (attorneys, CPAs, bankers, etc)?