Are You Getting the Right Financial Advice?

I want to share with you a non-negotiable requirement to look for when deciding who to trust with your life savings when building your retirement portfolio. It is known as the fiduciary standard, which means advisors are required to provide advice that is always 100% in the consumer’s interest. Unfortunately, there are a lot of brokers today who call themselves advisors and the consumer may be deceived into thinking the advice they are receiving is in their best interest, and in many cases may not be.

We have met with a lot of people in our office, who often times have a portfolio that is not built in their best interest. Typically, brokers are required only to recommend “suitable” investment advice, meaning the investments are based on the investor’s personal situation, including their age, investment goals, and risk tolerance, but ultimately, suitability can mean that a broker is not required to put a consumer’s interest before their own.
There are some advisors at financial firms that deal with possible conflicts of interests, such as sales goals or incentives which may encourage them to sell financial products that are not ideal for their client. For example, large brokerage firms have incentives to bring in new money and may pay their brokers and advisers a percentage of fees and commissions generated for their company. My recommendation is when you meet with your advisor, there should be complete transparency and disclosure of the investment or insurance products offered as well as the fees you are paying so when you leave their office you have a firm understanding of your overall portfolio.

Have you ever thought if the advice you are receiving from your “advisor” is in your best interest? Here at Cornerstone Retirement Group, we are fiduciaries, and in our eyes, you deserve to have your needs put first and a personalized plan developed to meet your investment goals. If you would like to visit with us to review your retirement plan, give us a call at (775) 853-9033.