(BPT) – Let’s face it: finances can be complicated. Whether opening a new investment account, saving for your child’s college fund or rolling over a 401(k), sometimes you need professional financial help.
But who to turn to? A financial advisor can be a great resource for professional guidance so that you’re not making critical investment decisions on your own, but did you know that not all financial advisors are equal? Some financial advisors may be little more than salespeople trying to sell you investment products that may or may not be in your best interest, but earn them a hefty commission.
If you’re looking for an advisor who truly has your back, you need to work with what is called a “fiduciary.” As a fiduciary, your advisor is legally required to place your interests ahead of their own.
It can be difficult to know who to trust — especially when advisors misrepresent their services with carefully crafted wording that gives the appearance of being a fiduciary, even when they are not. According to a recent survey from Financial Engines, America’s largest independent investment advisor, 53 percent of Americans mistakenly believe that financial advisors are already legally required to put their clients’ best interest first. Only 50 percent of investors who work with a financial advisor are certain that their advisor is a fiduciary, while 38 percent don’t know if their advisor is a fiduciary or not.
Most investors aren’t aware of how their advisors get paid and that advisors may not always be acting in their…
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