Published in 2011 by Summit Financial Planning
- They will show you their signed written oath promising to exercise their best effort to act in your good faith and in your best interests.
- All fees have been fully disclosed to you. The fees are understandable and you do not have to read the fine print to understand them.
- You pay fiduciaries for their knowledge, similar to a doctor or lawyer. Therefore, a fiduciary does not sell commissioned products.
- Does your advisor sell you products? If so, they are commissioned sales people acting in an advisory capacity. They have a legal obligation to the company they work for, not the client.
- Listen to the language that your advisor uses. A fiduciary will use consultative language. A sales person, who is trained to get to know you so that they can make a sale, will ask questions like: “Would you be willing to buy if . . .” and “Which of these choices would you prefer . . .”
- Listen….Follow your instincts. A red flag should be raised if…
- You feel like you are being sold or pushed to make a decision.
- It seems too good to be true.
- You are being sold a product that you cannot get out without great financial penalties.
- You perceive a conflict of interest. If your advisor is paid for products you buy, there is a conflict of interest between what is best for you and what is best for him/her and the company they work for.