Questions To Ask Your Advisor

Yes. A fiduciary owes his clients a duty of utmost good faith, and full and fair disclosure of all material facts. An advisor owes his client a fiduciary duty with respect to all services undertaken on the client’s behalf. An advisor’s fiduciary duty includes the duty of care and the duty of loyalty to clients. Your advisor should state in writing that a fiduciary relationship exists.

No. Advisors who do may be pressured to utilize products that help them meet their goals rather than your goals. 

Investment companies pay commissions to advisors on products sold to you. You pay fees to your advisor for ongoing advice provided to you. Commissions do not prevent a fiduciary relationship; however, having a financial interest in the products sold to you could cloud the relationship’s transparency. 

100% Fees. We are fiduciaries who do not accept income from any sources except our clients. This allows us to be objectively focused only on your best interests. 

Yes, I pay my own rent and business expenses, not a home office. An advisor who does not pay his or her own expenses is probably under the control of a larger organization that may influence the advisor’s decisions on how and where to invest your money.  

Yes. The ideal agreement is one you can terminate without penalty. Advisors who utilize proprietary products are preventing you from easily terminating your agreement because to do so will require that your investments be liquidated prior to being transferred. We do not utilize any proprietary products and most investment products we utilize are tradable through any full service or discounted broker. Products that won't transfer are liquidated penalty free. 

Certified Public Accountant, Personal Financial Specialist, Certified Financial Planner

As a CPA, I am required to have 120 hours every 3 years; as a Personal Financial Specialist, 60 hours every 3 years; and as a CFP, 15 hours every year

Yes. Your advisor should be able to look at your complete financial picture and offer you objective, wealth management advice covering all areas of your financial life. 

No. Some advisors place your assets in a limited partnership or pooled account and then manage them with little or no transparency.  Your assets will always remain in a brokerage account with your name on it and you will see every transaction posted to it. 

No. Some advisors are required to share their revenue with one or more superiors. This arrangement may, at the least, pressure the advisor to utilize high commissioned products, and most certainly creates a higher cost structure that you must pay to support. 

12(b)-1 fees - No
Trailing commissions of any sort - No
Surrender charges - No
Back-end fees - No
Soft dollar benefits - No
Contingency fees - No
Eligibility for sales prizes - No

All of these items are examples of hidden commissions that are paid to some advisors. Your advisor should be willing to disclose which products carry these commissions, how much the commissions are costing you, and why the advisor is utilizing these investments over those that do not generate any of these commissions. 

Yes. If the products are not good enough for the advisor, why should they be good enough for you?