Paul J. Hynes, CFP®

There are many differences. Among them is the incentive structure. The broker is incented to sell the plan, become the broker of record, and then collect the commissions, trails and/or residuals based on the contributions to the plan. The fiduciary advisor is likely to be compensated on a fee for advice and services basis. There's more transparency and accountability in the fee for services model. And, one likely area of advice would be around the costs of the plan investments. A broker will probably not recommend reducing costs if it affects the broker's earnings. A fiduciary advisor would not have the same conflict. Finally, the plan trustees can share some of their own fiduciary liability with another plan fiduciary, not with a non-fiduciary broker.

You can find a wealth of information to help your relatives with special needs and help those who care for them at the Special Needs Alliance (www.specialneedsalliance.org). This is a complex and changing area of law, tax and financial advice. You can find a qualified advisor in your area through this website.

In addition to checking on this website, there are other steps you can take to try to avoid becoming a victim of fraud by an unscrupulous advisor. It's your money and you want to be sure who you're dealing with. 1) Make sure the advisor uses a third-party custodian. That's where your money is. And, you should get statements and other reports directly from the third-party custodian. 2) Make sure the advisor only has limited discretion rather than full discretion. They can only direct investments, not take money out of the account. 3) The advisor should be able to explain clearly and easily how they invest on your behalf. 4) Avoid being wowed by a "celebrity" or enticements such as "this is an exclusive club and if you're lucky we'll let you in." 5) Be wary of high returns with low risk. There's no free lunch. 6) Check out the advisor on this site as well as either the FINRA or SEC website or both.