Quote Of The Week: “We’ll Trust Anyone To Manage Our Money”

question mark people

Anyone can call themselves a “financial adviser.” How can you tell if your adviser really puts your interests first?

Do you know the difference between financial advisers, or will you trust just about anyone to manage your money?

That’s the question raised by MarketWatch’s financial columnist Priya Anand in “10 Things Investors Won’t Tell You.”

Here’s how she explains it:

Brokers, advisers and financial planners all have different credentials–and different obligations toward clients.

“Some purveyors of financial advice operate under the fiduciary standard, which means they must put clients’ best interests first–for example, by avoiding and disclosing conflicts of interest or seeking low-cost investments.

“Brokers, who buy or sell securities, often call themselves financial advisers–but they operate under separate rules. They (and some others in the industry) are primarily salespeople, and are required only to deem products “suitable” for a client based on his or her risk profile, age, investment goals and other factors. The investments brokers recommend may come with higher fees or commissions that do more for their own bottom line than for that of their clients.”

“Investors seeking professional help should ask advisers or brokers how they get paid, and how that might influence their suggestions.”

The Bottom Line:  Adam Financial Associates is a Registered Investment Adviser, and our firm adheres to the highest fiduciary standard that Priya talks about above. Anyone can call themselves a “financial adviser,” so make sure to ask your advisor about their credentials, and if they’re a fiduciary, like we are, who is required to put your interests first.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!


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