Do you Know How Your Adviser Gets Paid?

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As Certified Financial Planner practitioners, we operate under a fiduciary standard, always focusing on the best interests of the client.  Conflicts of interest, if any, must be fully disclosed.  Any fees received by these professionals must be fully disclosed.  We operate as a Fee-Only adviser and receive no commissions or outside fees for our services.  Not all Certified Financial Planner practitioners act as Fee-Only advisers, and some receive commissions, which must be disclosed to you.

What standard does your financial adviser operate under? 

  • Are they a fiduciary?  A fiduciary is required to act in the best interest of the client. 
  • Do they earn commissions?  If so, how do they navigate which investments or products to recommend to you?  Some investments and services have higher fees than others.
  • Do they disclose to you how they made their decisions on what to recommend to you?
  • Does your adviser receive referral fees for professionals they recommend you to?  Is this disclosed?

 

It’s important to note that different types and designations of advisers operate under different regulations.  People who are not Certified Financial Planner practitioners may not operate under the same fiduciary standard.  Also, insurance professionals may not operate under these same standards.  Bottom line:  ask whoever you are working with how they get paid.  Do they earn fees, commissions, etc.?  When implementing your planning, do they earn additional fees in any other way?  Do they earn any fees from anyone they refer to you?

 

Questions?  We’re happy to discuss.