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Youre seeking aid to grow your assets and, likely, help you plan for retirement.
In your research, you may identify financial advisors who label themselves as fiduciaries.
Given the compensation structure of most in the financial advisory field, thissimple but powerful distinctionis important.
A fiduciary is ethically bound to work for whats in your best interest, not their commission.
Additionally, use thefree FINRA Broker Checkto learn the employment history, complaints, licensing information, and more.
If there is a red flag, it may be best to look elsewhere.
If a potential financial advisor is not a fiduciary, look elsewhere.
In fact, if a financial advisor isnt a fiduciary, run away!
Being a financial advisor can often be amere job descriptionor indicate theyve passed a test or two.
Fiduciaries Arent Led by Commissions
One inherent problem with a financial advisor is they charge commissions.
Fiduciariesare held to a different standard of care.
They typically charge a flat fee or percentage of assets under management.
Financial advisors arent legally required to abide by those same standards.
Hiring an advisor to help with your investments can be a good thing.
Dont stop short when researching potential people to hire.
It can be challenging to determine if an advisor is a fiduciary.
Use tools like the FINRA Broker Check or ask the person if they are a fiduciary.
If theyre unclear or theres little information on them, it may pay to seek help elsewhere.
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