Choosing a Financial Adviser: The Fiduciary Dimension
Even the most experienced investors sometimes reach a point where the challenges of balancing a broad range of financial objectives are too complex or time-consuming.
That's where a trusted financial adviser can help.
Many people find financial advisers by asking for recommendations from friends or co-workers. While this is a good starting point, it's important to understand an adviser's service model, compensation structure and whether they're qualified to both develop a financial plan and manage investments.
Whether you're beginning your search or already have a meeting with a financial adviser scheduled, you should know the answers to the following questions -- and understand their implications:
- Does the financial adviser serve his or her clients in a fiduciary capacity?
- How is the financial adviser compensated for his or her services?