How To Know Your Advisor Is Working For You

When you go to a car dealership you expect to be sold a car, right? In fact, they’re called salespeople. You both know the relationship of the other so you know what to expect. No problem.

Similarly, if you go see a financial advisor you expect to get advice. But, how do you know if that advisor is truly providing advice for you or really just trying to sell you something, such as life insurance or an annuity?

Answer: Ask the advisor if they are a Certified Financial Planner™ professional. CFPs are required to “act in the best interests of the client at all times”, according to the CFP Board’s Code and Standards.

What does that mean? Simply put, a CFP® professional must place our clients’ interests above our own. So, would we recommend a mutual fund in order to get a commission? Nope. Will we try and sell you life insurance to generate a fee? No way.

A Certified Financial Planner™ professional is trained and can demonstrate competency in multiple areas such as cash flow/budgeting, retirement, tax, estate planning, education funding and, yes, investments. All for the benefit of the client.

Would you trust a doctor providing advice that was anything other than “in your best interest?” No, you want treatment for you. Why ever settle for less?

Steve Byars, CFP®