Not every "advisor" is held to the same standard
Many people who call themselves financial advisors are salespeople paid by commission. They may only need to recommend something "suitable," even if a cheaper or better option exists. A fiduciary has to put your interests ahead of their own, all the time, not just at the moment of a sale.
How an advisor is paid matters
| Fee-only (C&D) | Commission-based | |
|---|---|---|
| Who pays the advisor | Only you | Product companies, sometimes you too |
| Sells insurance or annuities | No | Often |
| Paid more for recommending certain products | No | Can be |
| Required to act in your best interest | Yes, always | Not always |
"Fee-based" sounds like fee-only but isn't the same. A fee-based advisor charges a fee and can also earn commissions.
What this means at C&D
C&D Wealth Advisors has been fee-only since it was founded in 1981. We don't sell insurance, annuities, or other commission products, and we don't take finder's fees or referral payments. The only thing we earn is the fee you see on our Fees page.
Questions to ask any advisor
- Are you a fiduciary at all times, and will you put that in writing?
- How are you paid, and by whom?
- Do you earn anything from the products you recommend?
- Who holds my money?
- Can I see your Form ADV?
We're happy to answer every one of these at your first meeting.