Barbara Roper, director of investor protection for the Consumer Federation of America and a member of the Securities and Exchange Commission's Investor Advisory Committee, discusses what investors should expect from brokers and advisers.
….Do you have money to invest, but you're not sure where to put it? Most people who are unsure about investments hire someone to help. Here's how to do that the right way….
Unlike the NCAA, today’s investors do not have access to a single, systematic method or model for selecting an advisor and whittling a field of thousands down to the final four, and ultimately, the advisor team that best meets your needs.
It's no small matter entrusting someone to manage your investments. Scrutinize the person almost as much as someone you marry. There are several considerations, but how you pay the adviser is critical.
What would a football game look like if there were no playbook? A pickup game in the park with friends. In other words, it would be made up on the fly. While that might make it on the playground, it won't cut it in organized sports or with your financial life.
Relying on one "financial planner" to be an expert in everything is unrealistic. That's why FirsTrust offers our consulting clients access to a team of experienced specialists from the firm's 4 specialized divisions: Investment Management, Financial Planning, Tax Consulting, Trusts & Estates. We believe in having access to depth & breadth of knowledge, and we welcome the opportunity to collaborate with your other professional advisors.
…….if you haven't asked your financial advisor how they are being compensated, now is the time to ask……
Remember that a person selling a product can never be a true advisor, as their interest lies in selling their product and meeting their targets. So, who should someone seeking advice turn to? The best bet for the investor would be a fee-only advisor, who only offers advice, just like a doctor/lawyer and does not sell products or get any remuneration from it. In such a case, the advisor would work in their best interest, offers the most appropriate solution and charges a fee for it.
