fiduciary standard binds planners to legally act and advise in the best interest of the client
NEW YORK (PRWEB) June 29, 2018
A lot of consumers who are serious about their finances are trying to decide how they can choose the best financial planner for them that is why National Debt Relief shared some tips to help them decide. The article titled “Should I Consider A Fee-Only Financial Planner?” released June 27, 2018, gives people some important things to ponder on before choosing a professional financial planner.
The article starts off by pointing out that for people who manage their own investments might find the need to hire a professional financial planner at one point in their life. There are changes in a person’s life such as receiving windfall money or even starting to take minimum distributions from their IRA or 401(k) account.
One thing that the article points out is that hiring a professional financial planner is not always a requirement. However, the expertise that it brings to the table is a valuable one for people. It is much like trying to make a major repair on their house or car. Consumers would certainly call up a professional to do it for them especially if they undertaking big repairs. The same can be said with their finances. Having a professional take a look at their finances can be a big help in making sure they protect their finances.
The article also shares how financial planners and advisors operate when it comes the way they are paid. Those that are fee-only are paid only by their client directly much like lawyers and tax accountants. They are not allowed to receive any form of commission on the products they sell. The article also shares there are advisors who are paid a percentage of the client’s assets they are managing.
The article also explains the difference between fiduciary and suitability standard by which professional financial planners operate by. Simply put, fiduciary standard binds planners to legally act and advise in the best interest of the client. Suitability standard, on the other hand, requires financial advisers to only make recommendations that are suitable and appropriate to the client’s financial situation and long-term objectives. This means that the adviser has the opportunity to choose between products that may be equally suitable but also choose the one that pays the highest commission to him or her. As long as the choice is considered suitable, it doesn’t necessarily need to be the best choice for you
To read the full article, click https://www.nationaldebtrelief.com/consider-fee-only-financial-planner/