Q. How could I find a financial adviser who acts in my best interest?
A. Here are four ways to find an adviser who acts in your best interest -
1. Look for an adviser who structures his or her business to minimize conflicts of interest. You can find them among fee-only financial planners through the National Associations of Personal Financial Advisors (www.napfa.org).
2. As of Jun 30, 2020, the CFP Board will begin enforcing the new standard that holds a certified financial planner to a fiduciary duty for all the financial advice they dispense. (Under the current standard, CFPs have a fiduciary duty when they engage in financial planning but not more generally when giving advice)
3. As the adviser to sign a fiduciary oath (you can download one at www.thefiduciarystandard.org). It documents the agreed-up standard of conduct in case you get into a dispute, and it's a way to separate the wheat from the chaff because non-fiduciary advisers won't want to go near it.
4. You can also look for firms with Centre for Fiduciary Excellence certification (CEFEX) at www.cefex.org. These firms have agreed to adhere to fiduciary best practices and undergo audits to ensure that they are doing so.
A. Here are four ways to find an adviser who acts in your best interest -
1. Look for an adviser who structures his or her business to minimize conflicts of interest. You can find them among fee-only financial planners through the National Associations of Personal Financial Advisors (www.napfa.org).
2. As of Jun 30, 2020, the CFP Board will begin enforcing the new standard that holds a certified financial planner to a fiduciary duty for all the financial advice they dispense. (Under the current standard, CFPs have a fiduciary duty when they engage in financial planning but not more generally when giving advice)
3. As the adviser to sign a fiduciary oath (you can download one at www.thefiduciarystandard.org). It documents the agreed-up standard of conduct in case you get into a dispute, and it's a way to separate the wheat from the chaff because non-fiduciary advisers won't want to go near it.
4. You can also look for firms with Centre for Fiduciary Excellence certification (CEFEX) at www.cefex.org. These firms have agreed to adhere to fiduciary best practices and undergo audits to ensure that they are doing so.
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