"Managing Your Money Manager -- Demand these things from your financial adviser"

["Fiduciaries are persons or organizations who act on behalf of others and are required to put clients’ interests ahead of their own."
--Investopedia https://www.investopedia.com/terms/f/fiduciary.asp ]

From retired AARP financial columnist Jane Bryant Quinn:

"How do you know if your financial adviser has your best interests at heart? They all say they do. Then some of them turn around and sell you products with high (often hidden) costs that line their pockets at your expense...

"Ask the person managing, or offering to manage, your investments to state in writing that he or she will act as a fiduciary at all times, for retirement and nonretirement accounts. That’s especially important for less sophisticated investors who depend heavily on professional advice. Knowledgeable clients already demand fiduciaries for all their money.

"Ask the adviser to compare the costs and benefits of leaving your retirement money in your 401(k) versus investing it through the firm’s IRA. You want a good-faith estimate, in writing, of what you’ll pay in direct fees or sales commissions, plus any payments the adviser’s firm quietly receives for selling particular mutual funds or annuities... Don’t settle for generalities; get specifics. True fiduciaries will give them to you.

"Consider choosing an adviser who charges flat fees -- such as a percentage of managed assets or a fixed amount per year -- rather than those who also take commissions. Fee-based advisers can be expensive, too, so you still have to check. But commissioned advisers are those most likely to push complex products, such as annuities whose sky-high costs dwarf any benefits.

"Don’t be blinded by titles like “financial adviser” or “wealth manager.” If they’re not fiduciaries, the advisers can earn commissions on sales, and they’re legally entitled to put your interests last.

"Even if they are fiduciaries, they still might persuade you (wrongly) that costly investments are in your best interest."

https://jbquinn.com/?p=921 

You can pay directly for independent financial advice.

"A certified financial planner (CFP) is the gold standard for financial planners, backed by a rigorous certification from the CFP Board of Standards.... Most importantly, CFPs are required to put your interests first—it's not just a promise, it's their legal obligation as a fiduciary."  Investopedia article: https://www.investopedia.com/terms/c/cfp.asp

Locate a local Certified Financial Planner: CFP Board of Standards - Directory   CFP Certification Requirements   CFP Code of Ethics and Fiduciary Duty   Ten Questions to Ask Your Financial Advisor 

Whoever you deal with, you can easily check out the person and company.

The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.
Investopedia article: https://www.investopedia.com/terms/f/finra.asp

Check out a financial advisor or broker on the FINRA Broker Check site: https://brokercheck.finra.org

Financial companies, such as Fidelity or Vanguard, have their own business objectives, which may not align with yours.

Several years ago, HP made a pension lump-sum buyout offer to certain EDS retirees: "...speak with a Fidelity Representative at no cost to you... help you understand how this decision may affect your personal financial situation and help with your overall retirement planning and investment strategy." However, it became clear to EDS alumni that Fidelity was acting as HP's financial advisor, not the retirees' advisor -- key information required to evaluate the offer was buried in the legal Summary Plan Description, which was not included in the mailing.

If you have an existing retirement, 401(k), or personal brokerage account at Fidelity, go to http://netbenefits.com and use your existing username and password. Otherwise, call Fidelity 1-800-457-4015 (If no password, keep hitting #.) (Outside US 1-508-787-9902 collect.) Fidelity (Don't go to a local Fidelity office, which is focused on sales.)  

Credit unions, while legally member-owned non-profits, are still businesses -- with their own objectives.

At any credit union, the financial advisors are generally commissioned salespeople employed by legally-separate financial companies -- which pay the credit union for access to members and space in CU branch offices.

A CU financial advisor's business card and desk nameplate indicate their legal employer.

For example, Digital Credit Union financial advisors are employed by an outside company -- Digital Investment Services -- which is connected with LDL Financial.
https://www.digitalinvestmentservices.com (Scroll all the way down to the fine print.)

Similarly, First Tech CU financial advisors are employed by outside companies -- such as Addison Avenue Investment Services and ATS Wealth Circle -- connected with Raymond James Financial Services.

Typical fine print at the bottom of the page: "...securities are not insured by credit union insurance, the NCUA or any other government agency, are not deposits or obligations of the credit union, are not guaranteed by the credit union, and are subject to risks, including the possible loss of principal. .. First Technology Federal Credit Union, Addison Avenue Investment Services are not registered broker/dealers and are independent of Raymond James Financial Services and ATS Wealth Circle..."

The Digital Investment Services site has a link to a very thorough explanation:

"Our Professionals are primarily independent contractors, although a portion are employees or employees of an affiliated company... Professionals who provide you brokerage services receive a portion of the commissions or markups/markdowns from your trades. Receiving a portion of the advisory or brokerage fees you pay to us creates an incentive for them to encourage you to increase your investment account size or trade more frequently. We also compensate Professionals based on production, including payments based on the amount of client assets they service and the products they sell. In addition, our Professionals receive different levels of compensation for selling different types of investments or services. ...these additional forms of compensation create an incentive for them to recommend specific financial products."
https://www.lpl.com/content/dam/lpl-www/documents/disclosures/lpl-financial-relationship-summary.pdf  (Page 4)

"Preparing for early retirement, I called First Tech CU. Once the 'Financial Advisor' determined that I wasn't interested in an annuity, he was off the phone in 15 seconds." --HPAlumni Finance Forum member

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