Why meet with a financial advisor

The first meeting is about what's most important to you. We can help you navigate your financial future. It all starts with a conversation. Find an Advisor. What concerns you most about your finances? In other words, advisors working under the suitability standard are only obligated to recommend products that are a suitable solution for you, but may not be in your BEST interest.

So how do you know if your advisor is a broker operating under the suitability standard or a pure fiduciary? To find out, visit the Broker-Check website. Alternatively, here is a search for a random Wells Fargo financial advisor from the Broker Check website:. In this example, the advisor is a Broker and does not operate under the fiduciary standard of care.

This person also has a compliance disclosure! Imagine going to a doctor who recommends a specific drug to make you feel better. Later, you find out that the doctor was paid by the pharmaceutical company to recommend that prescription.

Even worse, another less expensive drug was available but the doctor didn't recommend it because he wasn't paid a commission for selling it. How would you feel? This would be a lapse of fiduciary duty. But brokers or non-fiduciary advisers do that all the time when they sell a product that is suitable for you, but not necessarily in your best interest.

What's the bottom line? The fiduciary duty should be an integral part of your conversations with potential advisors. Here are some follow-up questions you can ask an advisor before you hire to ensure that person is indeed a pure fiduciary:. How do you uphold the fiduciary standard in your business? Do you apply your fiduciary commitment to every part of your business? Are you a registered representative?

If so, then they are a broker too. Another reason financial planning can get murky is through advisor fees and compensation. Many advisors don't disclose their fees through their website.

That's a major problem and reeks of a lack of transparency. That's why our fees are prominently displayed on our website. After all, how can you trust an advisor if they don't even tell you how much they are paid.

The truth is that there is a whole slew of ways advisors get paid and it is important that your advisor clearly articulates and illustrates their fees so you know exactly how it works. After all, good investment advice is never free.

Your financial advisor should be compensated. But how they are compensated can create conflicts of interest. Fixed fee. This plan is not etched in stone. As your priorities shift, your advisor will help adjust your strategy accordingly. Working with a financial advisor can give you peace of mind that you have a well thought out strategy when it comes to your hard-earned money. However, when you think about your complete financial picture — does it only include your cash flow, debt management, and investments?

At HD Vest, advisors have reinvented the way financial services are delivered. Think about it this way — every dollar you make or spend may be affected by taxes at some point. From income and sales tax to investment tax breaks, understanding the pages of tax rules is often a difficult task.

The HD Vest affiliated companies exclusively provide financial products and services and do not provide or supervise tax or accounting services.

Advisors may provide tax, accounting or other services through their independent outside businesses, but these services are separate and apart from HD Vest. Some planners charge by the hour or have a set rate for certain services: This is called fee-based planning.

Some are compensated by a commission every time they make a transaction or sell you a product. Some get paid in both ways. Fee advisors claim that their advice is superior because it carries no conflict of interest, as commission-based recommendations might. Investors looking for the right advisor should ask a number of questions , including:.

The nature of the advisory field is also changing. Investors now usually have access to their accounts digitally and so, beyond traditional, in-person meetings, may meet with their advisors virtually for some or all of their portfolio review sessions.

Additionally, many robo-advisors offer a hybrid advice model, which combines the typical asset allocation and advice services of a traditional advisor with a digital, automated platform. These are computer algorithms, though, so don't expect customized advice, unique strategies, and hand-holding from them.

When deciding on the type and the scope of advice that you might need from a financial advisor, it's important to ask the right questions about your money needs and to assess your own level of comfort in managing your own finances. Some consumers may balk at the idea of paying hundreds of dollars just to plan, budget, and invest their money, but think of it as an investment: The money can buy you a quality plan that can be put together in a few hours and last you 20 years, with only a minimal need for a financial checkup with the planner from time to time.

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