Fiduciary's have a responsibility to their clients to act in their best interest.

Is Your Financial Advisor a Fee-Only Fiduciary

 

Do you know how your financial advisor is compensated? Why is this something you should be aware of? It’s important to know since how they are compensated can have a huge impact on the type of advice you’re provided and the types of investment products that are recommended to you. A fee-only financial advisor basically means a “no-commission” advisor. They only receive compensation straight from you instead of being paid by commissions from products they sell.

 

How to tell if your advisor is a fee-only fiduciary?

Fee-Only

Compensated only by fees, typically a percentage of assets under management. This compensation structure avoids conflicts of interest when a significant portion of the advisor’s income comes from selling financial products.

Fiduciary

Investment advisors are bound to a fiduciary standard that was established as part of the Investment Advisors Act of 1940. This act states that the advisor must simply act in the best interest of his or her clients at all times. Take for example, an advisor who adheres to the Investment Advisors Act of 1940, must buy and sell securities in his or her client’s accounts first BEFORE his own personal accounts. Loyalty is also key. An advisor who is held to the Fiduciary standard places their loyalty to their CLIENTS!


You would assume that all financial advisors must give advice that’s in their client’s best interest—but that’s not the case. The Suitability standard states just that—that recommendations only have to be suitable, it doesn’t necessarily have to be consistent with the client’s investment objectives or profile. A financial professional, held to the suitability standard, is loyal to their employer first, not the client.


Here’s the HUGE differentiator with Pacific Landfall

 

I take this one step further and purchase many of the same securities that my clients own! That way, my clients know I am confident in my recommendations and have my financial interests in the same securities as I recommend!


Here’s How to Tell If Your Current Advisor Is a Fiduciary

  1. Registered Investment Advisor firm. Advisors who work for a Registered Investment Advisor firm are all held to the Fiduciary standard.

  2. Check their certifications. Look at what certifications your financial advisor has. Advisors holding certifications from the College for Financial Planning or popular certifications such as CFP, CRPC, CFA are all held to higher ethical standards!

  3. Ask them! Ask your financial advisor if he or she is a Fiduciary. If they are a Fiduciary, your advisor will gladly tell you all about the Fiduciary standard. If your financial professional is NOT a fiduciary, they might not answer you directly. ASK about the Series 65 securities law license.

Pacific Landfall is a Registered Investment Advisor registered at the state level with Arizona. I currently hold my Series 65 – Securities Law License, as well as my Chartered Retirement Planning Counselor designation. I proudly tell everyone I am held to the Fiduciary Standard and am on a mission to show everyone why their financial goals are best kept with an advisor who adheres to the Fiduciary standard!

Sound overwhelming? Not as well-versed in the world of finance as you’d like to be? Let me help you achieve your financial goals! Getting started working with me is as easy as requesting to meet.  Let’s meet!

Schedule your complimentary consultation with Chance today!