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Is Your Investment Advisor a Fiduciary?

Dont’ be fooled, most advisors do not adhere to the fiduciary standard, but rather the suitability standard. That means they put their own interests ahead of yours. Advisors practicing under the suitability standard have a higher duty to their firm than their clients.

Conflicts of interest often come into play at Wall Street firms. And when an advisor has a conflict between the firm and the client, the firm usually wins. Advisors often receive greater compensation when they don’t put the client first. Be sure that you’re working with an advisor that adheres to the fiduciary standard. Understand the conflicts of interest (pushing company product) that may arise and know what fees you’re paying. Less money paid in fees increases your overall return.