Differences Between Stock Brokers and Financial Advisors: Fiduciary Duty 
There has always been a certain appeal of having a personal stockbroker. Someone at the “front line” of the global marketplace, an industry insider, ready to offer investment opportunities that the ordinary investor may miss, never hear of or even have access to.

Brokers develop relationships with their clients, often providing them with a sense of security, representation and access.  Brokers do well when their clients’ investments do well, and giving bad advice is simply bad for business.  So surely, as financial representatives, brokers are required to give the best investment advice possible, and to put the interests of their clients ahead of their own.  Right?

Astonishingly, NO.

Because “broker-dealers” are regulated far less strictly than “investment advisors” under SEC law, brokers do not have a fiduciary duty to clients.  A fiduciary duty is the highest standard of care at either equity or law. 

A “fiduciary” (such as a financial advisor) is expected to be extremely loyal to the person to whom he owes the duty (the “principal”); fiduciaries must not put their personal interests before the duty, and must not put themselves in a position where their personal interests and their fiduciary duties may conflict.  If a broker recommends a client buy a given stock – and receives a commission from their firm for selling that stock – there is an inherent conflict of interest.

Brokers will often push investment products upon clients not because they are best for the client, but because the broker has a financial incentive to sell that product. 

Because brokers are not bound by fiduciary duty, such conflicts of interest are not only legal, but also quite common.

Many financial advisors and investment advisors, on the other hand, are bound by fiduciary duty.  They are legally bound to put their clients’ interest above their own, and to avoid conflicts of interest – often resulting in more objective advice than one would receive from a stockbroker pushing certain products upon clients for their own benefit. 

Ensuring that your financial advisor, financial planner or investment advisor is bound by fiduciary duty is a very important distinction to make – if you are seeking this degree of care, conscientious advice and objectivity, don’t expect it from your broker.

NOTE: Experts recommend contacting 2-3 financial advisors or financial planning firms, in order for an individual to contrast and compare each financial advisor or firm; thus making the best-qualified choice for their unique situation.

This online resource of financial advisors is a directory of independent, Registered Investment Advisors (RIAs) managed by FINRA and the SEC (United States Securities and Exchange Commission).

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Financial advisors have varied educational backgrounds, work experiences, and specializations.  Finding the right financial advisor, wealth manager, money manager and/or financial planner takes the right research. 

It requires Trust in the source. 

We are an independent 3rd party database of high-quality financial advisors and financial planning firms and if you have noticed… there is NO advertising on this directory.  That’s not what we are about.  We are about helping our consumer base find the best financial advice for their particular situation.  That’s you!

Every person has uniqueness to their financial landscape along with their unique goals.  Financial advisors gain credentials in a wide variety of specialized areas in order to serve their client’s specific needs.  We feature select financial planning professionals, wealth managers and financial advisors across the US from which to choose. 

The AllFinancialAdvisors directory is a “matching service”  so that consumers and investors alike can find the right match for their unique situation.

It’s really easy.  Just Start by entering your Zip Code.

NOTE: Experts recommend contacting 2-3 financial advisors or financial planning firms, in order for an individual to contrast and compare each financial advisor or firm; thus making the best-qualified choice for their unique situation. 

This online resource of financial advisors is a directory of independent, Registered Investment Advisors (RIAs) managed by FINRA and the SEC (United States Securities and Exchange Commission).

Many of the financial planners within our directory explain how their financial planning process works within their profiles.  Our financial advisors take fiduciary oaths and pledge to uphold the highest standard of ethics. 

After reviewing their profile pages, you can request more detailed information, their fee schedule and/or a meeting.   You can have us make that match if you prefer.

Many of our advisors are members of the National Association of Personal Financial Advisors (NAPFA: the nation’s leading organization promoting Fee-Only comprehensive financial planning) and the Financial Planning Association (FPA).

Excerpts written by Ara Oghoorian, CFA: ACap Asset Management
(Beverly Hills, CA).

If you’re like most Americans, ringing in the New Year also means resolving to change old habits, or start new ones. Year after year, getting one’s personal finances in order consistently ranks as one of the top 5 New Years resolutions.  As with any resolution, the hard part is not making the promise, but actually putting it into action – consistently.   

Monitor Your Credit Rating / Credit Scores
A good credit score is the single most important factor in getting a bank loan to buy a home or a car, among many other things. Therefore, it is crucial to check your credit report; one overlooked mistake can cause havoc when you least expect it. Under current laws, you are entitled to a free copy of your credit report each year. Put a reminder on your calendar to check your credit every January.

Put Your 401K and Other Savings on Auto-pilot
If your employer has a 401k (403b, 457, etc.) plan, contribute the maximum amount while still maintaining a manageable lifestyle.  If you have maxed out your 401k and can still save some more, open either a Roth IRA (if you qualify) or a non-deductible IRA and contribute any additional savings. While your current income is finite, your future needs are infinite. If you would like to save for your child’s college education, only do so after you have saved for your own retirement. As I tell my clients, you can always borrow for college, but you can never borrow for retirement.

Pay Off Credit Cards
If you carry a balance on one or more credit cards, select the one with the highest interest rate and begin aggressively paying down the balance. If you can only make the minimum payments on your credit cards, begin cutting non-essential monthly expenses to devote more funds to paying off the debt.

Meet with a Fee-Only Financial Advisor
You don’t need to be a millionaire to benefit from working with a competent financial advisor.  A Fee-Only financial advisor can help you: identify or sharpen your financial goals; develop a detailed written plan to help keep you on track; identify an appropriate asset allocation that is commensurate with your circumstances; minimize your taxes; and most importantly, put your plan into action and provide you with detailed updates.  A Fee-Only financial advisor is like a doctor for your finances.

SUMMARY: Executing on all four (4) of these steps and you are certain to see tangible improvements in your financial health.  May your 2011 be a prosperous and healthy year for you and your family.
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AllFinancialAdvisors.com: Many of our advisors are members of the National Association of Personal Financial Advisors (NAPFA: the nation’s leading organization promoting Fee-Only comprehensive financial planning) and the Financial Planning Association (FPA).  Using the services of a qualified financial advisor and/or Wealth Manager (to help you identify the strengths and weaknesses in your financial picture) will ensure you can retire comfortably!  NOTE: Experts recommend contacting 2-3 financial advisory firms, so that one may compare/contrast each firm, thus making the best-qualified choice.