Advisor Check
Five questions. No name at the end, just a framework and where you actually stand.
Question 1 of 5
Do you currently have investments beyond a basic 401(k) or savings account?
Looking for our full fiduciary diligence criteria? How to Vet a Financial Advisor (Without Getting Sold) →
FREQUENT QUESTIONS // FIDUCIARY VETTING
[01] How do I know if my financial advisor is a fiduciary? +
Ask for a signed, written fiduciary oath. A true fiduciary is legally required to put your interests ahead of their firm's profits at all times. If an advisor only follows the 'suitability standard', they can legally sell you products that pay them higher commissions.
[02] What is the difference between fee-only and fee-based? +
Fee-only advisors are paid solely by you and accept zero commissions or kickbacks from Wall Street fund companies. Fee-based advisors sound similar, but they are allowed to collect both fees from you and hidden commissions from financial product providers.
[03] How much does a financial advisor cost over 30 years? +
Most advisors charge 1% of your total account balance each year. On a $500,000 nest egg compounding over 30 years, a 1% AUM fee siphons off more than $250,000 in lost returns. Flat-fee or hourly advisors can save you hundreds of thousands of dollars.
[04] What are hidden 12b-1 fees? +
12b-1 fees are annual marketing charges quietly taken out of mutual fund balances to reward the broker who sold the fund to you. They reduce your investment gains every year without showing up as a separate line item on your monthly statement.