With trust in banks and the nation’s financial system at historic lows, new market research reveals that 86 percent of investors are thinking twice about their financial advisors.
If you don’t trust your financial advisor, get a financial second opinion. Above all, you want to work with a financial advisor who tells the truth. The best definition of truth is when the word and the deed are one. Find an advisor who truly looks out for your best interest–someone who isn’t just there to tell you what you want to hear, but someone who is there to tell you what you need to hear. An advisor who makes commissions from selling you a financial product has an inherent conflict of interest. Remember, an advisor who swears to act as a fiduciary bears a legal obligation to act in your best interest at all times.
An industry survey recently revealed how confused investors are about which financial professionals operate under a “fiduciary standard” that mandates putting their clients’ interests ahead of their own. Although most investors don’t understand that brokers and registered investment advisors work under different legal obligations, 97 percent of investors agree that “when you receive investment advice from a financial professional, the person providing the advice should put your interests ahead of theirs and should have to tell you upfront about any fees or commissions they earn and any conflicts of interest that potentially could influence that advice.”
The Dodd-Frank Act gives the SEC the chance to craft a pro-investor policy that requires all financial professionals to operate under the fiduciary standard. The investing public deserves nothing less.