I want to tell you about the “F” word. No not that one…Fiduciary. Fiduciary is a fancy legal term that means you LEGALLY have to do what is in the best interest for someone in your care. For instance, attorneys to their clients, doctors to their patients, guardian to his ward, or a priest to his parishioner.
Did you know that over 90% of financial advisors are NOT Fiduciaries?!?! This means they can put their own interest ahead of yours! They can sell you the product that is going to get them the highest paycheck or a bonus trip to Hawaii without regard if it is best for you.
Can you imagine having cancer and your doctor telling you to take an aspirin (because the aspirin company is going to give him $100k if he gets all his patients to take it)? You would be beside yourself! Yet this is happening in the financial services industry to your family and friends (and maybe even you) every day!
Here is a recent article in Forbes Magazine outlining the questions you should ask your advisor.