Choosing the right financial professional is vitally important to your financial well-being. Here are some things to consider…
Run a background check on your Professional. Start at BrokerCheck.org – the government’s website for verifying employment history, certifications, licenses and any violations. Have they ever been convicted of a crime? Has any regulatory body ever put them under investigation, even if they weren’t found guilty or responsible? Have they ever filed bankruptcy? These are giant red flags and should be taken VERY seriously.
Community Involvement. Does the company focus more on contributing to the community or increasing profits? Being a pillar in the community and a beacon of trust is vital to the success of a town. Additionally, being a community-centric firm truly demonstrates their commitment.
Impact of the DOL rule. “The Department of Labor rocked the brokerage world several months ago when it decreed that brokers must – horror of horrors – put their clients’ interests ahead of their own. The so-called fiduciary rule is meant to address a long-standing problem. Financial Advisors routinely recommend mutual funds to retirement savers, but in many cases the mutual fund companies pay advisors to sell those funds.
The new fiduciary rule now forces advisors to make sure that their clients’ interests are, in fact, top of mind. That means advisors will have to stop taking money from mutual fund companies altogether or disclose those payments to their clients – a conversation that will rightly raise some uncomfortable questions.
There are plenty of places where investors can find conflict-free advice and cost effective investing, including community-based, independent financial firms..
To learn more about this and other Money Matters articles, contact Fritz at (702) 293.0880 or McDonaldFinancial.org.