Is your advisor really working for you? When a financial advisor is employed by a brokerage firm, bank or an insurance company, he’s a ‘representative’ whose first allegiance is to his own firm in order to stay employed. Sometimes advisor ‘reps’ will want to adhere to the higher fiduciary standard, but then they switch hats and adhere to the lower suitability standard to sell you an investment product from their firm’s menu of products.
The new Fiduciary rules are intended to help investors clear up the confusion around choosing an advisor, and marketing departments at the big brand name Wall Street banks didn’t take long to find ways to blur the lines.
Here are my five questions to ask an advisor to help you make a smart decision.