Investor Protection – The Department of Labor – Advisors Should Act in Your Best Interest – I Agree!
The department of Labor has an article where they are blunt about investment advice that involves a conflict of interest. As you know, I am a fee-only advisor precisely because of the Department of Labors Concerns and:
1) I am a fiduciary that will act in your best interest
2) I LOVE being able to tell people that regardless of what investment product I recommend, my compensation does not change. It is liberating to be able to choose the best product without regards to how I get paid. My compensation/fee is easy to calculate, understand, and is completely transparent. You know exactly what you are paying for.
Here is the Article:
and here is a video they embedded in the article. Please note that this video is the department of labor’s video and not mine but it demonstrate the potential conflict of interest for some advisors.
How is a fee only Advisor Different than the Video?
Simple! We get paid ONLY the fee agreed upon by the client. We then seek out the best pricing for the investment product we use. We have an incentive to locate the best product for you, without the bias of how much we will get paid.
What Should You Do? Investigate if Your Advisor is Working in Your Best Interest
1) Ask if your advisor makes a different level of compensation depending on the product they recommend
2) Ask your advisor how they are paid. If you are paying a fee, ask if that is the ONLY compensation they receive related to your accounts
3) Ask if your advisor is a fiduciary and will always act in your best interests. In my investment advisory and financial planning contracts I am a fiduciary and am contractually obligated to act in my client’s best interest and disclose any and all conflicts of interest.
** The information on this website is intended only for informational purposes. Investors should not act upon any of the information here. Reh Wealth Advisor clients should discuss with their advisor if any action is appropriate.
Image by Stuart Miles at FreeDigitalPhotos.net. Video from the US Department of Labor