With a nod toward Mr. Foxworthy, and full recognition that this list lacks any humor whatsoever: You might need a new Financial Advisor if: Individual stocks comprise a large percentage of your portfolio. The fees on the mutual funds you own average more than 30 basis points (3/10 of 1%). All of your mutual funds Read more about You Might Need a New Financial Advisor if …[…]
Rick Ferri correctly notes that “there are two levels of fiduciary care. One is a legal standard and the other is a stewardship standard. A legal standard exists in the RIA industry and may soon exist in the brokerage industry. A legal fiduciary will act in the client’s best interest provided these actions are also in Read more about Beyond the Fiduciary Standard[…]
Robb Isbitts correctly notes that “the problem with seeking professional investment help is that all too often the person sitting across from the investor as an ‘‘advisor’’ is there to make a sale . . .” rather than to provide objective advice designed to help investors reach their financial goals. Read the entire article here Read more about Are You Being Advised or Sold To?[…]
“In this era of corporate scandal, the world needs more truth tellers. History has consistently shown that law enforcement authorities cannot effectively and efficiently police the marketplace without the assistance of private individuals and entities. Labaton Sucharow is dedicated to helping responsible organizations establish a culture of integrity and courageous whistleblowers to report possible securities Read more about Wall Street in Crisis: A Perfect Storm Looming[…]
Choosing a financial advisor can be an extremely consequential (and difficult) decision. Finding the right one can make a significant difference to your financial future. Finding the wrong one can have devastating consequences.
Unfortunately, many (most?) of the 300,000 or so financial advisors in the United States are simply financial salesmen with excellent communication skills and just enough knowledge of the financial marketplace to be dangerous. And, sadly, most of them work for the best-known Wall Street firms, banks and insurance companies (the part of the industry that those of us who are independent refer to as “the Dark Side”). Suffice it to say, while it’s very easy to find someone with “financial advisor” on their business card, it can be frustratingly difficult to find someone who can actually dispense objective financial advice at a reasonable price.
This is, perhaps, the best (video) explanation I’ve seen on the difference between a broker and a fiduciary. Well worth the 2 1/2 minutes! View the video >>