Investment advice can range from a general recommendation as to what type of asset allocation model you should follow, to specific recommendations on which investments to buy and sell. Some financial planners also offer investment advice and investment management services in addition to financial planning. Ask a potential financial planner if they give specific investment advice or only offer planning services.
There are several resources available that can help you know if an advisor is a fiduciary. The National Association of Personal Financial Advisors (NAPFA) has an online search tool that makes it easy to find certified financial planners in your area. Every advisor in that system operates on a fee-only basis and promises to act as a fiduciary. Garrett Planning Network is another planner organization of fiduciary financial planners who charge an hourly rate. Additionally, the Certified Financial Planners Board has an advisor search tool. You can use it to look up a particular planner and see their experience and history.
All investment advisors registered with the U.S. Securities and Exchange Commission (SEC) or a state securities regulator must act as fiduciaries. Broker-dealers, stockbrokers and insurance agents are only required to fulfill a suitability obligation. This means that while they must provide suitable recommendations to their clients, they don’t have to put their clients’ interest before their own.
Choosing a fiduciary financial advisor can give you greater peace of mind. With a fiduciary financial advisor, you’ll know that the person managing your money must make decisions in your best interest. In general, fiduciary financial advisors tend to have fewer conflicts of interest, and they’re required to disclose any potential conflicts of interest that they have. Financial professionals who earn commissions may be incentivized to sell their own products even if there are comparable products available at a lower cost. Fiduciaries must seek the best prices and terms for their clients. Thus, if you work with a fiduciary you’re more likely to end up with the product or recommendation that’s truly right for you.
As a professional sales trainer with more than 25 years of experience, Grant Cardone and his company work with small business owners and Fortune 500 companies from around the world to help increase their annual revenue. Unlike the majority of personal finance experts, including Dave Ramsey and Chris Hogan, Cardone teaches his followers not to worry about spending a lot of money or getting into debt. In fact, he once said, ‘‘Your problem is never debt or [over] spending.’’ He believes that people should focus their time and energy on making more money instead of struggling to make ends meet with what little they currently have. According to Cardone, there is no limit on a person’s earning potential; however, at the end of the day, one can only reduce their living expenses by so much. This is why he tells people that the only way to thrive and not merely survive in this new economy is to get out of the middle class and become a high-income earner.
The protagonist of the novel, Margayya begins his career as petty money-lender doing his business under the Bunyan tree, in front of the Central Co-operative Land Mortgage Bank in Malgudi. He helps the shareholders of the bank to borrow money at a small interest and lends it to the needy at a higher interest. In the process, he makes money for himself.
It’s best to go with a certified financial planner (CFP), which is an instant signal of credibility – but not a guarantee of same. To start, ask people like you if they can recommend a planner. If you have kids, ask a colleague who also has children. If you’re single and just out of college, check with a friend in the same boat. If possible, you want to find a planner with successful experience advising clients in the same stage of life as you.
The planner might have a specialty in investments, taxes, retirement, and/or estate planning. Further, the financial planner may hold various licenses or designations, such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Chartered Financial Consultant (ChFC), or Certified Investment Management Analyst (CIMA), among others. To obtain each of these licensures, the financial planner must complete a different set of education, examination, and work history requirements.
For more leads, check the National Association of Personal Financial Advisors (NAPFA). These planners are fee-only, which means their only revenue comes from their clients. They accept no commissions at all and pledge to act in their clients’ best interests at all times. In many respects, NAPFA standards meet or surpass the requirements needed for a CFP credential.
The most commonly held professional designation is the certified financial planner (CFP®), which is owned and issued by the Certified Financial Planner Board of Standards, Inc., a nonprofit certifying and standards-setting organization that administers the CFP exam. Certified financial planner is a formal credential of expertise in the areas of financial planning, taxes, insurance, estate planning, and retirement. The designation is awarded to individuals who successfully complete the CFP® Board’s initial exams, then engage in ongoing annual education programs to maintain their skills and certification.