When choosing a financial advisor, ask what duty they owe you and how it applies throughout the relationship.
“Fiduciary” is the legal term that matters. A fiduciary must act in the client’s best interest, disclose material conflicts, and put the client’s interest ahead of the advisor’s own.
Pathfinder acts as a fiduciary. We are also fee-only, so we do not receive product commissions. These describe the duty we owe you and how we are paid. We welcome questions about our recommendations and any conflicts involved.
If you are interviewing an advisor, ask a direct question: “Will you act as a fiduciary for me at all times, and will you put that in writing?”
The words “at all times” are useful. Some professionals act as fiduciaries for one part of a relationship and under a different standard for another. Ask the advisor to explain any change in their role or duty.