Understanding the difference between a fiduciary standard and a suitability standard could pay major dividends in a relationship with a financial professional. Operating under the fiduciary standard requires a planner to put the client’s interest ahead of his or her own. In other words, don’t be afraid to ask your financial advisor the motivation behind his or her recommendations. Recently, the FPA in a combined effort with NAPFA and the CFP Board have made a big push to have the fiduciary standard applied to securities brokers that give investment advice as well. In this msn.com article, Liz Pulliam Weston does a nice job breaking down the differences between these two words and lists some questions you might like to ask your advisor.
Can You Trust Your Financial Advisor?
Written by Chad Smith, CFP®.
