Financially Speaking: Investment Advisors vs. Financial Advisors – Is There a Difference?
Jason Glisczynski, CAS
Certified Annuity Specialist
PlanMyBenefit.com Preferred Social Security Counselor
Not endorsed or approved by the Social Security Administrative office or any other government agency
Glisczynski & Associates, Inc.
1320 Okray Ave
Plover, WI 54467
715-341-8899 ext. 15
More often than not, consumers assume that the financial person they are working with is 100% free of bias and working COMPLETELY in their (the clients’) best interest. Unfortunately, the financial services industry is set up in a way that may unintentionally mislead the consumer to believe that the person they are working with is operating in a fashion that puts the clients’ interests first, above that of the professional and the company they are working for. Unfortunately, that simply is not the case.
If you review your current account holdings and the representatives that are assisting you with those you may find some interesting facts. Financial services professionals that are not held to a fiduciary standard are free to recommend investments to their clients that may cost more and pay higher commissions than similar funds with lower costs, provided the investment is a suitable one. An advisor that has a fiduciary duty is not permitted to do so. In fact, a financial professionals’ contract with the firm he or she works with may REQUIRE them to sell you the higher cost fund, resulting in higher fees and overall suppressed results. An advisor that is subject to the fiduciary standard legally cannot do that.
A smart move for consumers is to simply ask the following question to the individual they are working with: Do you have a fiduciary duty to work for me? Can you please provide that (the fiduciary duty) to me in writing?
This article was written by Jason Glisczynski and is not to be treated as investment advice. Investment Advisory Services offered through Brookstone Capital Management, an SEC Registered Investment Advisor.