What Type of Financial Planning Professional In Paducah Are You Speaking With ?
Most financial planners in Paducah are investment advisers, but not all investment advisers are financial planners.
Some financial planners assess every aspect of your financial life—including saving, investments, insurance, taxes, retirement, and estate planning—and help you develop a detailed strategy or financial plan for meeting all your financial goals. Others call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products, and sometimes products that aren’t securities.
Before you hire any financial advisor in Paducah, you should know exactly what services you need, what services the professional can deliver, any limitations on what they can recommend, what services you’re paying for, how much those services cost, and how the adviser or planner gets paid.
Another question Brandon Morgan, a fiduciary and independent investment advisor with Bradshaw & Weil Wealth Management in Paducah, suggest that you ask yourself some questions like; is the advisor a true advisor? This is important as an independent advisor has the right to reach across company lines and get his or her client the product or portfolio that is best for the client. An advisor that is restricted or who is limited, offers what the company he/she works for offers. This is common with the big-name Brokerage firms and captive Insurance companies. It is important to understand that when dealing with a limited range of financial products, it could have an adverse effect on your financial goals.
Does the advisor have an ADV Brochure, is also important to know. The Form ADV is the uniform form used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts. Part 1 requires information about the investment adviser’s business, ownership, clients, employees, business practices, affiliations, and any disciplinary events of the adviser or its employees.
Beginning in 2011, Part 2 requires investment advisers to prepare narrative brochures written in plain English that contain information such as the types of advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients. When filed, the brochures are available to the public on the IAPD website.
Brandon Morgan and Bradshaw & Weil Wealth Management believe it is important that before you hire someone in Paducah to be your investment adviser, always ask for, and read carefully, both parts of the adviser’s Form ADV.
Knowing what services, the advisor offers will also key you in on what type of financial professional you are speaking to in Paducah, KY. An Investment advisor should have the ability to discuss investment relates tax issues, assess your risk tolerance and build a total plan for not only your future, but the future of your legacy as well. Risk tolerance, level of income,
personal preference, capital needs, children’s future needs, your estate planning, insurance needs and sources of retirement income should all be discussed by your advisor. If these items and more are not discussed, you might need to keep looking for your advisor. Choosing the wrong advisor can mean lost years of your future.
Always ask, how does the advisor get paid and does the advisor accept fiduciary responsibility or are they held to a suitability standard? Investment Advisor Representatives are required to disclose to each client how much they will be paid and how they are paid on the plan put in place, for their client.
Trying to figure out the terms and language of today’s complex financial services industry can be difficult, even for the most financially educated members of the general investing public. Brandon Morgan said the two words of importance are: fiduciary and suitability. These two words are critical in understanding the motivation behind the person offering you financial products or advice, Brandon went on to say.
Recognizing the difference between the fiduciary and suitability standards may also help you to appreciate the level of care you receive from a trusted financial advisor.
In our next article we will dive deeper and explore the meanings of a fiduciary and the suitability standard.
Investment advisory services offered through Virtue Capital Management, LLC (VCM), a registered investment advisor. VCM and Bradshaw & Weil Wealth Management are independent of each other. For a complete description of investment risks, fees and services, review the Virtue Capital Management firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting Virtue Capital Management. Information provided is not intended as tax or legal advice, and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional. The information presented does not does not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to project the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a monthly fee for assets under management while insurance products pay a commission, which may result in a conflict of interest regarding compensation.