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The Foundation of Great Financial Advice


There is an old saying about building your house on a rock instead of sand – of course I can’t remember exactly how it goes but you get the idea. There is a tendency among the naturally trusting public to assume that anyone calling themselves a financial advisor will be on their side when giving them advice. In reality, there are very few financial advisors that accept the legal and moral responsibility to place their client’s interest above their own. Folks are naturally wary when buying a used car, but the guard comes down when it is time for financial advice.
The first step in finding a financial advisor is finding someone who will act as a fiduciary for you. Without this foundation of rock to build a relationship on, you are very likely headed for problems. Retirement planning, financial planning, investment management, taxes, estate planning and insurance are all very complex issues. This complexity can be used to manipulate you so that advice becomes a hidden sales pitch to generate revenue for the advisor.
A fiduciary accepts the responsibility of putting your interests ahead of all other interests. In my opinion every client deserves no less. So if you are looking for a financial advice relationship, ask this question first; “Will you act as a fiduciary and will you put that commitment in writing?” If the answer is no, move on. You are building a house on sand.
Here is a link to another article on the benefits of a fiduciary.

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Comment   |  6 years, 6 months ago from Kingsport, TN