Tag: financial advisor

How To Tell If a Financial Advisor Is a Fiduciary

Posted on by Colette Nichol

How To Tell If a Financial Advisor Is a Fiduciary

If you’re wondering how to tell if a financial advisor is a fiduciary these five steps will help.

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

5 Ways to Tell If Your Financial Advisor Is a Fiduciary

1 – Ask them directly: A genuine fiduciary will straightforwardly affirm their role and commitment to act in your best interests.

2 – Review the advisor’s credentials: Certifications such as CFP® (Certified Financial Planner) or AIF® (Accredited Investment Fiduciary) often indicate a fiduciary standard.

3 – Examine their fee structure: Fiduciaries typically operate on a fee-only or fee-based structure, avoiding commission-based payments that could influence product recommendations.

4 – Research their registration: Check if they are registered with the SEC (Securities and Exchange Commission) or state regulators, as Registered Investment Advisors (RIAs) are held to a fiduciary standard.

5 – Request a written commitment: A fiduciary should be willing to provide a signed document that attests to their obligation to act in your best interests at all times.

Common Questions About Fiduciaries

How do I know if a financial advisor is a fiduciary?

To determine if a financial advisor is a fiduciary, you can directly ask them and also verify their status by checking their credentials and registration with regulatory bodies like the SEC.

Do all financial advisors have a fiduciary duty?

No, not all financial advisors have a fiduciary duty. Only those who are registered as such and commit to acting in the best interests of their clients carry this responsibility.

Why is it important to work with a fiduciary advisor?

It’s important to work with a fiduciary financial advisor because they are ethically and legally bound to act in your best interests, ensuring you receive objective advice and minimizing conflicts of interest. While there are great advisors out there who are not fiduciaries, you may wish to check if the advisory firm you’re working with has a fiduciary environment. 

Some firms will have CFPs and AIFs who are fiduciary advisors. They may have other advisors who are not fiduciaries but are guided by the firms policy to always act in a client’s best interest. 

The main reason people choose to work with fiduciaries is because then they can be sure they’re not being sold packaged products such as mutual funds that have excessive fees.

What is the difference between a fiduciary and a non-fiduciary advisor?

The difference between a fiduciary and a non-fiduciary advisor is that a fiduciary advisor is legally obligated to act in the client’s best interests, while a non-fiduciary advisor might prioritize their own interests or those of the institution they represent over the client’s. They do not have a fiduciary duty to their client. 

Are there any red flags to watch out for when assessing an advisor’s fiduciary status?

Yes, when assessing an advisor’s fiduciary status, red flags to watch out for include vague fee structures, reluctance to provide a written fiduciary commitment, or promoting products that offer them high commissions without clear benefits to the client.

What questions should I ask my financial advisor to confirm their fiduciary duty?

To confirm their fiduciary duty, you should ask your financial advisor if they are a fiduciary, inquire about their fee structure, and request a written statement affirming their commitment to act in your best interests.

Are there regulatory bodies or organizations that oversee fiduciary standards?

Yes, there are regulatory bodies that oversee fiduciary standards. In the U.S., the Securities and Exchange Commission (SEC) and state regulatory bodies supervise fiduciary standards, and professional organizations like the CFP Board set standards for certified professionals.

What legal obligations do fiduciary advisors have towards their clients?

Fiduciary advisors have the legal obligation to act in the best interests of their clients, disclose any potential conflicts of interest, and provide advice that aligns with the client’s goals and financial situation.

Connect with a Financial Advisor Online or In Person

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Other Articles and Guides 

Online Advisor: Robo Advisors vs. Human Advisors

How Many Steps Are in the Financial Planning Process?

Retirement Planning for Self-Employed People

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Why Is It Important To Have a Fiduciary as a Financial Advisor?

Posted on by Colette Nichol

Why Is It Important To Have a Fiduciary as a Financial Advisor?

Why is it important to have a fiduciary as a financial advisor? In this blog post, we’ll explore the importance of choosing a fiduciary to guide your financial journey and ensure your best interests always take center stage.

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

Key Reasons to Choose a Fiduciary Financial Advisor & Tips to Find the Right One

Having a fiduciary as a financial advisor is often considered important because fiduciary financial advisors are ethically and legally bound to act in your best interests. This ensures the advice they give is based on their clients’ financial goals and not the advisor’s personal gain. 

Working with a fiduciary means you don’t have to worry about conflicts of interest. There will be a relationship of trust and transparency which is essential for long-term financial planning and wealth management.

A fiduciary financial advisor’s guidance is especially valuable in complex financial landscapes because a fiduciary’s duty compels them to provide advice with a depth of consideration and care. Your fiduciary financial advisor will factor in many aspects of your financial life and always put your best interest first.

Fiduciaries are often more thoroughly regulated, enhancing client protection and recourse in cases of unsatisfactory conduct or advice. The fiduciary standard can significantly influence the quality of financial planning, directly impacting wealth accumulation and preservation strategies vital for high-net-worth individuals.

To find a reputable fiduciary financial advisor, consider these five practical tips:

1 – Ask for Credentials

Look for advisors with reputable certifications such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), as these designations require adhering to fiduciary standards.

2 – Request a Fiduciary Statement

Directly ask if the advisor is willing to sign a fiduciary oath, committing in writing to place your interests above their own.

3 – Understand the Fee Structure

Opt for advisors with fee-based structures rather than commission-based, as this aligns their interests with yours, promoting transparency.

4 – Check Regulatory Compliance

Verify the advisor’s compliance history via FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure.

You can check (IAPD) for past disciplinary actions and to confirm fiduciary status.

5 – Seek Referrals and Read Reviews

Ask for client referrals and read online reviews to learn from others’ experiences and ensure the advisor has a strong reputation for upholding fiduciary responsibilities.

finding a fiduciary financial advisor

Common Questions about Why Is It Important To Have a Fiduciary as a Financial Advisor?

Why should my financial advisor be a fiduciary? 

Your financial advisor should be a fiduciary because they’re legally bound to place your interests above their own, ensuring recommendations are based on your financial goals and needs.

What is a fiduciary, and why is it important to know if a financial advisor is or is not a fiduciary? 

A fiduciary financial advisor is a professional entrusted to manage assets or wealth while putting the client’s best interests first. While you don’t have to work with a fiduciary, it’s important to know that there are benefits to ensuring your advisor is a fiduciary. Working with a fiduciary will ensure your investments are handled with utmost integrity and you advisor is fully dedicated to your financial wellbeing.

Do financial advisors have a fiduciary duty to clients? 

Not all financial advisors have a fiduciary duty, but those who are registered fiduciaries are legally obligated to act in the best interests of their clients.

Can you lose money with a fiduciary?

First it’s important to note that you don’t lose money until you sell. The market may be down, but unless you sell, you haven’t lost any money. However, if you were to sell at the wrong time, you could lose money. Thus, it’s possible to lose money with a fiduciary if you insist on selling when the market is down. Your advisor is there to guide you through the ups and and downs of the market and to help prevent you from making catastrophic errors that put your wealth at risk.

However, if you were to liquidate some of your investments when the market was down, you would lose money whether you were working with a fiduciary or any other advisor.

Investments inherently carry risks because the market doesn’t have an exclusively upward trajectory. Depending on your risk tolerance, your portfolio may be more or less volatile than the market as a whole.

Keep in mind that a fiduciary’s duty is to make prudent decisions in alignment with your financial objectives and risk tolerance. If you’re younger and are working to grow your wealth, then your portfolio will fluctuate more than someone who is in their 70s and is aiming to preserve wealth rather than build wealth.

Why is having a fiduciary financial advisor important? 

Having a fiduciary financial advisor is important to some investors because fiduciaries are required by law to act in your best interests. They can’t just choose investments that are “suitable.” Instead, they must ensure that all investments and advice are in your best interest. When you know that your advisor isn’t selling you packaged products with hefty hidden fees, you can relax. You can trust your advisor because you know they’re always acting in your best interest.

How do fiduciary advisors protect my interests? 

Fiduciary financial advisors protect your interests by acting with loyalty and care, avoiding conflicts of interest, and providing transparent, objective advice that aligns with your financial goals. They must choose what is best for you not what is merely suitable for you.

Are there risks to not having a fiduciary advisor? 

Yes, the risks of not having a fiduciary advisor include receiving advice that might be influenced by factors other than your best interests, such as commissions on products sold to you.

How does working with a fiduciary advisor benefit my financial future? 

Working with a fiduciary advisor benefits your financial future because you’ll know that every piece of advice or financial planning strategy you receive is tailored to your goals. This gives you peace of mind because you know that your wealth is being managed with your best interests in mind. You don’t have to worry about your portfolio growth being slowed down by hidden fees.

Connect with a Fiduciary Financial Advisor

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Other Articles and Guides 

Online Financial Advisor vs Human Advisor

How To Tell If a Financial Advisor Is a Fiduciary

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call


This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Is It Ever Wise To Choose a Financial Advisor Who Is Not a Fiduciary?

Posted on by Colette Nichol

Is It Ever Wise To Choose a Financial Advisor Who Is Not a Fiduciary?

Is it ever wise to choose a financial advisor who is not a fiduciary? If you find a financial advisor who you feel comfortable with and who has been recommended to you but is not a fiduciary, is it okay to work with them? That’s what we’ll go over in this post.

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

6 Key Considerations When Choosing a Financial Advisor

Ultimately, you’ll have to decide whether to work with a fiduciary or a regular financial advisor based on what you think is best for you. However, here are some guidelines that may help you decide if an advisor is the right fit for you.

Some of these key considerations are also relevant when evaluating fiduciary financial advisors as well.

1 – Compensation Structure

How does the advisor earn their money? through commissions, fees, or a combination? This knowledge can reveal potential biases in the products they recommend.

2 – Conflict of Interest Disclosures

Does the advisor provide clear disclosures about potential conflicts of interest? Full transparency is key to trusting their guidance.

3 – Product Specializations

What are the advisor’s areas of expertise or product specializations? Sometimes, non-fiduciaries might offer more extensive options in specific areas like insurance.

4 – Regulatory Standing

Is the advisor in good standing with regulatory bodies? Check FINRA’s BrokerCheck for any past disciplinary actions or conflicts.

5 – References and Reviews

Can the advisor provide references from satisfied clients, or are there positive reviews available publicly? Past clients’ experiences can offer valuable insights.

6 – Investment Philosophy Alignment

Does the advisor’s investment philosophy align with your financial goals and risk tolerance? Even if they’re not a fiduciary, it’s vital that their strategy resonates with your objectives.

Is it ever wise to choose a financial advisor who is not a fiduciary?

Common Questions About Choosing a Financial Advisor

Is it ever wise to choose a financial advisor who is not a fiduciary?

  • There are times when it might make sense to work with someone who isn’t a fiduciary. It’s not a black and white decision. Review these questions and then make a judgement based on your preferences and priorities.

When might it make sense to choose a non-fiduciary financial advisor?

  • Opting for a non-fiduciary advisor can be practical for product-specific advice or transactions, such as purchasing insurance or investments with upfront commissions, especially if you are confident in your ability to assess the recommendations yourself.

What are the benefits of working with a non-fiduciary advisor?

  • The benefits of a non-fiduciary advisor include potentially broader product offerings and lower initial costs, as they often work on commission and may have access to a wide array of insurance or investment products.

What are the potential risks of selecting a non-fiduciary advisor?

  • Risks involve conflicts of interest since non-fiduciary advisors aren’t obligated to place client interests above their own, leading to recommendations that might be profitable for them but not necessarily optimal for you.

How can I ensure a non-fiduciary advisor is acting in my best interest?

  • Ensuring a non-fiduciary advisor acts in your best interest involves proactive steps like consistently asking about and evaluating the reasoning behind their recommendations and understanding how they’re compensated.

Are there standards that non-fiduciary advisors must follow?

  • Non-fiduciary advisors are bound by the suitability standard, meaning they must provide recommendations that are appropriate for your situation, but not necessarily the best possible option available.

What questions should I ask a non-fiduciary advisor before hiring them?

  • Inquire about their compensation structure, experience, how they handle conflicts of interest, their typical client, and request examples of how they’ve helped clients in similar situations to yours.

When might it be a good idea to use both fiduciary and non-fiduciary advisors for different financial needs?

  • Utilizing both fiduciary and non-fiduciary advisors can be wise when different segments of your financial portfolio require distinct expertise, allowing for comprehensive coverage of both general and specific financial areas.

Connect with a Fiduciary Financial Advisor

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call or video chat with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients online and in person serving clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Other Articles and Guides 

Online Financial Advisor vs Human Advisor

How To Tell If a Financial Advisor Is a Fiduciary

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

What Does a Fiduciary Financial Advisor Do?

Posted on by Colette Nichol

What Does a Fiduciary Financial Advisor Do?

What does a fiduciary financial advisor do? A fiduciary financial advisor helps you to navigate complex financial planning and wealth management strategies.

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

Your fiduciary financial advisor will consider your big-picture financial plan, retirement strategy, tax implications, charitable giving strategies, and multigenerational wealth transfer. They will ensure that all decisions made are beneficial to you. They will typically offer a range of services, from comprehensive financial planning to specific investment management, always with a duty of care that legally binds them to act in your best interests. 

A fiduciary financial advisor meticulously analyzes your entire financial situation and crafts strategies aligned with your long-term objectives and risk preferences. 

Legally, fiduciary financial advisors are obligated to disclose any potential conflicts of interest and are committed to transparent fee structures. Their legal obligation to act in your best interest prevents biased advice driven by commission motives. In fact, if something is not the absolute best option for you, they cannot recommend it.

By prioritizing your needs, your advisor will seek the most prudent path to safeguard and optimize your wealth.

woman doing her taxes

Common Questions About Fiduciary Financial Advisors

Is a fiduciary financial advisor better than a broker?

  • A fiduciary financial advisor is often considered better than a broker because they are legally required to act in your best interests, whereas brokers may promote investments that benefit them through commissions.

What is the primary role of a fiduciary financial advisor?

  • The primary role of a fiduciary financial advisor is to provide comprehensive financial guidance and investment advice that prioritizes the client’s needs and goals above all else. They operate under a strict standard of honesty and transparency.

How does a fiduciary financial advisor help with financial planning?

  • A fiduciary financial advisor helps with financial planning by offering unbiased, client-focused advice on wealth management strategies, savings, investments, and other financial matters. They ensure that their recommendations align with your long-term objectives and financial security.

Are fiduciary financial advisors only focused on investment management?

  • No, they are not only focused on investment management; they provide a range of services including financial planning, retirement strategies, tax advice, and estate planning.

How does a fiduciary financial advisor prioritize my financial interests?

  • They prioritize your financial interests by placing them above their own, offering advice and choosing products based on what’s best for you, not based on personal gain or commission.

Are fiduciary financial advisors legally bound to act in my best interest?

  • Yes, they are legally bound to act in your best interest, ensuring a standard of care in their advice and services that non-fiduciary professionals are not required to uphold.

Can a fiduciary financial advisor help with retirement planning and estate management?

  • Yes, they can help with retirement planning and estate management, offering expertise on creating sustainable income streams post-retirement and effectively transferring wealth with minimized tax burdens.

Connect with an Advisor Online or In Person

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Other Articles and Guides 

How Fiduciary Financial Advisors in Minnesota Can Help

How to Choose a Good Financial Advisor

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

What Is the Difference Between a Financial Advisor and a Fiduciary?

Posted on by Colette Nichol

What Is the Difference Between a Financial Advisor and a Fiduciary?

A financial advisor can be anyone who gives financial advice, while a fiduciary is a type of financial advisor who is legally and ethically required to put your interests above their own. 

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

Non-fiduciary advisors may recommend suitable products, even if they aren’t the lowest-cost or most beneficial to you, potentially earning commissions on those products. In contrast, fiduciary advisors must recommend investment products that best suit your needs and are usually compensated by a flat fee or a percentage of assets managed, avoiding conflicts of interest common in commission structures. 

This fundamental difference in obligation can impact the advice you receive. Fiduciaries may provide more impartial guidance than advisors who are not fiduciaries. This is crucial for anyone with substantial assets to consider. 

When selecting an advisor, understanding this distinction is key to ensuring your wealth is managed with transparency and your financial goals are prioritized.

Common Questions About the Difference Between a Financial Advisor and a Fiduciary

Should I use a fiduciary or regular financial advisor?

  • You should work with the financial advisor who is most qualified and with whom you feel comfortable. In many cases a fiduciary may be a better fit for you as fiduciaries are ethically bound to act in your best interests, providing more assurance that your financial plans align with your goals and needs. However, there are also regular financial advisors who are also excellent. Ensure that you feel comfortable with whomever is managing your investments. 

How do you determine if a financial advisor is a fiduciary?

  • You can determine if a financial advisor is a fiduciary by asking them directly, checking for relevant certifications like CFP® or CFA, or verifying their status on regulatory websites like the SEC’s Investment Adviser Public Disclosure (IAPD).

What are the disadvantages of a fiduciary?

  • The disadvantages of a fiduciary may include potentially higher fees due to their in-depth service and a limitation to products they believe are in your best interest, which might restrict a broader market view. For most investors, this is not a problem. 

What are the potential benefits of working with a fiduciary over a regular financial advisor?

  • The potential benefits of working with a fiduciary over a regular financial advisor include receiving unbiased advice, more transparent fee structures, and the assurance that your advisor is held to the highest ethical and professional standards.

How do financial advisors and fiduciaries differ in their responsibilities?

  • Financial advisors and fiduciaries differ in their responsibilities in that fiduciaries must legally prioritize their client’s best interests above their own, while non-fiduciary advisors are only required to recommend products that are suitable — not necessarily best — for clients.

Are all financial advisors fiduciaries?

  • No, not all financial advisors are fiduciaries; the fiduciary status of an advisor depends on their certifications, the nature of the advice they provide, and their registration with regulatory bodies.

Do fiduciaries have different legal obligations towards their clients?

  • Yes, fiduciaries have different legal obligations towards their clients, as they are required by law to act solely in their clients’ best interest, a standard that surpasses the “suitability” requirement of non-fiduciary advisors.

Are there specific situations where one might be more suitable than the other?

  • Yes, specific situations where one might be more suitable than the other include complex financial planning or significant investment decisions, where a fiduciary’s higher standard of care is beneficial, whereas basic investment guidance or one-time financial advice might be suitably handled by a non-fiduciary advisor.

Connect with a Fiduciary Financial Advisor

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Other Articles and Guides 

How To Tell If a Financial Advisor Is a Fiduciary

Online Financial Advisor vs Human Advisor

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Financial Advisors for Business Owners: What They Do and How They Help

Posted on by Colette Nichol

Fiduciary Financial Advisors for Business Owners

What Your Business Financial Advisor Will Do and How They Can Help

If you’re searching online for financial advisors for business owners, then you probably have specific tax and investment management needs that are more complex than the average professional. It’s important that you work with the right wealth management team. In this post, I’ll cover what financial advisor for business owners do and how they help.

By Will Grant, Wealth Manager, CFP®, CPWA® of 360 Financial

As a CERTIFIED FINANCIAL PLANNER™ and Certified Private Wealth Advisor®, Will helps clients create their ideal life through values-based financial planning. His process is designed to pursue each client’s objective, whether it’s preparing for retirement, ensuring smooth business succession, funding for education, implementing wealth transfer strategies, or navigating other impactful financial events.

Do You Need a Financial Advisor that Specializes in Working with Small Business Owners?

It’s important to work with an experienced and credentialed team that can help you get you from where you are now to where you want to go.

If you’re planning the sale of a business, you need someone who can handle the complexities of that transition and guide you through it. Or you might want to ensure that you’re not overexposed and unprepared for retirement.

An advisor who understands investment management and complex financial planning for business owners can help. They can help you evaluate your options, discuss pros and cons, and build a customized strategy based on your specific goals. 

Try to Find a Financial Advisor that Provides Holistic Wealth Management for Business Owners

As a business owner, you’re busy running your business.

Maybe you have a family or other loved ones that you’re responsible for and life can hectic. If you’re like many of the busy business owners we work with, you’re looking for a team that can take care of every single aspect of wealth management for you. So you don’t have to worry about it.

Your time is valuable, and it’s critical that you’re able to focus on what matters most to you, rather than worrying about your portfolio or future retirement income streams.

There are advisory firms that are great at handling the basics.

However, as a business owner, your needs may be more complex. You may require more than the basics. And you would likely benefit from having seamless tax planning capabilities. In this post, I’ll go over the main aspects of wealth management for business owners.

At 360 Financial, we work with many business owners within our home state of Minnesota. We also work with business owners across the US. To learn more about our financial advisory services for business owners, please schedule a 15-min introduction call.

How Does a Business Financial Advisor Help?

Your personal and business finances may be connected when you’re a small business owner. Below, I’ll cover some of the areas where a good financial advisor for business owners will be invaluable.

Comprehensive Financial Planning

An experienced advisor will provide business owners and their families with personalized plans based on their situation, goals, risk tolerance and unique challenges. You advisor should address all aspects of your financial life.

The should help you with the following key elements of wealth management:

  • retirement planning
  • investment management
  • succession planning
  • risk management
  • tax optimization
  • estate planning
  • legacy planning

A comprehensive approach is instrumental to make smart, informed financial decisions.

Tax Planning and Strategies

Your financial advisor should support you as a business owners with tax planning by staying up-to-date with ever-changing tax laws. Whether you’re considering business entity structures, retirement plans, or succession planning, your advisor should offer valuable insights.

At 360 we have a partnership with a CPA firm which enables clients to access tax planning services alongside a tax advisor and wealth manager, streamlining your financial strategies. While you’re not at all required to work with our CPA firm, it can be helpful to have it all under one roof.

Your financial advisor should work together with your accounting firm to ensure you get the best possible tax planning strategy to minimize your taxes each year.

Insurance Planning

Your financial advisor should play a key role in helping you as a business owner assess risks within your financial life and discuss options to protect your business and family. Overall, your advisor should strive for well-rounded insurance coverage that is customized to your goals, provides risk management and provides financial security for those you care about.

Retirement Planning

At 360 Financial, we start by conducting a comprehensive analysis of your current financial savings and retirement goals to determine if we are on track. Then we can create a customized retirement strategy which uses the appropriate retirement plan based on your situation and employees.

We can assist with the initial retirement plan set-up, monitoring and maximizing your contributions to help build a work-optional lifestyle.

401(k) Plans for Employees

Your financial advisor should guide you through the different types of retirement plans that are available to business owners and help you decide which is best. Navigating whether you should get a Solo 40(k), SEP IRA, SIMPLE IRA, Profit Sharing Plan, Cash Balance Plan, etc can get confusing. Your advisor should help you decide which will align best with your employees and financial goals. At 360 Financial, we assist our business owner clients through the whole process from set-up to monitoring. If the plan needs to be terminated in the future, we’re able to help with that as well.

Help with Succession Planning

For some business owners a succession plan is a once in a lifetime event that you want to make sure is done correctly. From maximizing the value of your business to facilitating a successful transition, you want to make sure there are no mistakes and everything is seamless.

At 360, we can help explore a range of options from Mergers and Acquisitions (M&A) strategies to Family Limited Partnerships (FLP) and Employee Stock Ownership Plans (ESOPs). Whether you’re considering a sale to an external buyer, passing the business to family members, or employees, we can provide a customized strategy based on your vision.

Schedule a 15-minute Call

What Kinds of Business Owners We Help at 360 Financial

Local Brick-and-Mortar Small Business Owners

From sole proprietors to business owners with hundreds or thousands of employees, our team is experienced in a wide range of situations, dedicated to serving your business and family. Our partnership with CPA firm Rapacki + Co. allows us to offer you the option of working with a comprehensive team to help implement tax-efficient strategies through our LifeWealth Process.

Business Owners Planning for Retirement

As a business owners, you’ve worked hard and deserve to have a relaxing retirement. We help you get there by developing a customized LifeWealth Plan based on your financial goals, risk tolerance and vision.

Our financial plans for business owners approaching retirement involves review of their current financial landscape, optimizing retirement savings while working, developing a tax-efficient withdrawal strategy during retirement and assisting with succession planning. Our team of CFP professionals provide experienced knowledge that will access estate and tax considerations as well. 

Independent Financial Advisory Firms Ready for Succession

At 360 Financial, we also specialize assisting financial advisors with books of business monetize their business and transition to retirement. It’s important to know that your clients are in good hands with a team of dedicated professionals held under the fiduciary standard with excellent client service for the coming decades.

Business Owners Planning for a Sale or Liquidation Event

If you’re preparing for the sale of a business, you’re probably spinning a lot of plates. And you might be worried about the tax consequences. Everyone has to pay tax. But you shouldn’t have to pay more than is required due to an error in tax planning.

Our team of Wealth Managers assist business owners to prepare for a sale or liquidation event for their business. We do this with a professional team of advisors ranging from tax, insurance and legal to help navigate the complexities of a transaction.

Benefits of Working with a Fee-Only Fiduciary Financial Advisor

There are several key benefits working with a fee-only fiduciary advisor such as our experienced, CFP professional team. First, there is trust that your advisor is held under the fiduciary standard which means to always act in client’s best interests. Not every advisor is held to that standard so it’s important to ask. We also provide our transparent fee structure during our first discussions which is a pillar to building trust with our clients.

This promotes clarity on the benefits we can provide your family through our LifeWealth process and investment committee. 

Connect with a Financial Advisor Online or In Person

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

William Grant

Will Grant, CFP

Will Grant enjoys empowering people to make informed decisions and seeing the positive impact his guidance can have on their lives.

Prior to joining 360, he spent seven years serving hundreds of clients at a boutique RIA focused on healthcare executives with equity compensation and then at a large, independent RIA. He earned a Bachelor of Science degree in Finance from Miami University and holds his Series 7 and 63 licenses through LPL Financial and his 65 license through 360 Financial.

Will lives in Minneapolis with his fiancée, Melissa. In his free time, he enjoys competing in triathlons, golfing and is an active member of the Minnesota Leadership Council for the Chick Evans Scholarship Foundation, which he was a recipient of.

Schedule a 15-minute Call with Will

Other Articles and Guides 

Retirement Planning for Self-Employed People

Small Business Retirement Plans

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

How To Find a Good Fiduciary Financial Advisor

Posted on by Colette Nichol

How To Find a Good Fiduciary Financial Advisor

When looking for a financial advisor or wealth management team, it’s not uncommon to prefer to work with a fiduciary. But how do you know if someone is a fiduciary and how can you find a good fiduciary financial advisor? In this post, we’ll cover the basics of finding a fiduciary financial advisor. 

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

At 360 Financial, you can speak with a fiduciary financial advisor to see how they can help you build and protect your wealth and prepare for the future.

7 Tips on How to Find a Good Fiduciary Financial Advisor

1. Verify Credentials

First and foremost, look for advisors with respected certifications such as CFP® (Certified Financial Planner), CFA (Chartered Financial Analyst), or CPWA® (Certified Private Wealth Advisor), indicating they’ve met rigorous professional standards. At 360, we have CFPs, AIFs, and CPWAs who can help you with your wealth management needs.

Look for:

  • CFPs
  • CFAs
  • CPWAs
  • AIFs

2. Utilize Financial Regulatory Websites

Use resources like the SEC’s Investment Adviser Public Disclosure (IAPD) website and FINRA’s BrokerCheck to confirm registration status and uncover any past disciplinary actions.

3. Seek Personalized Referrals

Ask high-net-worth acquaintances or business associates for recommendations, as they’re likely to know advisors experienced in handling substantial assets.

4. Ensure Complete Fiduciary Commitment

During your first call, ask advisors if they’re committed to acting as a fiduciary across all services and inquire about their approach to conflicts of interest.

5. Understand Fee Structures

Prefer advisors with transparent costs. A fee-based model based on a percentage of assets under management will prevent conflicts of interest because you and your advisor will be on the “same side of the table.”

However, all fiduciaries must work in your best interest at all times. So when you have a fiduciary financial advisor, you don’t need to worry about being sold packaged products that aren’t in your best interest. This is in contrast to some firms or big banks where you may find that you’re being sold mutual funds that have hidden fees and are not in your best interest.

6. Evaluate Communication and Compatibility

Your advisor should offer clear, consistent communication and show a willingness to understand your unique financial objectives, ensuring a solid, long-term relationship.

7. Assess Depth of Services

Depending on your investable assets, ensure potential advisors offer a comprehensive range of services, including estate planning, tax strategies, financial planning, legacy planning, and philanthropic planning. They are all crucial for wealth management if you have a high net worth.

Ask about:

  • estate planning
  • tax strategies
  • financial planning
  • legacy planning
  • philanthropic planning

Fiduciary advisors with appropriate qualifications and certifications have demonstrated a high level of competency, education, and ethics. When you work with a fiduciary financial advisor you can have confidence that they’re equipped to make decisions in your best financial interest.

Common Questions About How to Find a Good Fiduciary Financial Advisor

Is a fiduciary financial advisor worth it?

  • Yes, a fiduciary financial advisor is worth it as they are legally obligated to act in your best interest, potentially preventing costly conflicts of interest and guiding your investments responsibly.

What is the downside of using a fiduciary?

  • The downside of using a fiduciary includes possibly higher fees due to their comprehensive advice model and a sometimes narrower range of products due to their obligation to only recommend the best options for you.

Why should I consider working with a fiduciary advisor?

  • You should consider working with a fiduciary advisor because they provide unbiased, client-first advice and are committed to transparency and high ethical standards, ensuring your wealth is managed with utmost integrity.

What qualifications and certifications should I look for in a fiduciary advisor?

  • In a fiduciary advisor, look for qualifications and certifications such as CFP® (Certified Financial Planner), CFA (Chartered Financial Analyst), or CPWA® (Certified Private Wealth Advisor), which indicate advanced expertise and adherence to stringent ethical guidelines.

Are there any specific questions I should ask potential advisors during interviews?

  • During interviews, ask potential advisors about their fiduciary commitment, fee structure, conflict-of-interest scenarios, investment philosophy, and experience with clients in similar financial situations to yours.

What are some warning signs of a potentially unreliable financial advisor?

  • Warning signs of an unreliable financial advisor include lack of transparency about fees or fiduciary status, making exaggerated claims about investment returns, pressuring client decisions, absence of reputable certifications, or having a disciplinary history with financial regulatory bodies.

Connect with a Fiduciary Financial Advisor

SPEAK WITH AN ADVISOR

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial.

360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

About the Author

Mike Rogers

Mike Rogers

Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.

In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”

Schedule a Call

At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.

Schedule a 15-minute Call

Read More:

Wealth Management for Small Business Owners

A Guide to Wealth Management for High-Income Earners

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

How a Fiduciary Financial Advisor in Minnesota Can Help

Posted on by Colette Nichol

How a Fiduciary Financial Advisor in Minnesota Can Help

By Mike Rogers, AIF®, Founder and President of 360 Financial

Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.

What is a Fiduciary?

A fiduciary is an individual or organization legally required to act in the best interest of another party. Fiduciaries must prioritize the interests of their clients above their own, which eliminates potential conflicts of interest and ensures you receive the highest standard of service and care.

 

Table of Contents:

  1. What is a Fiduciary?
  2. What is a Fiduciary Financial Advisor?
  3. How to Find a Fiduciary Financial Advisory in Minnesota
  4. Is it Better to Have a Fiduciary Financial Advisor?
  5. Understanding the Fiduciary Standard in Financial Advising
  6. Ethical Responsibilities of a Fiduciary Financial Advisor
  7. Impact of Fiduciary Duties on Investment Strategies
  8. Regulatory Compliance for Financial Advisors
  9. Conflict of Interest Management for Financial Advisors with Fiduciary Duty
  10. Fiduciary Responsibility in Retirement Planning
  11. The Consequences of Breaching Fiduciary Duties
  12. Fiduciary Duties in Estate Planning and Wealth Transfer
  13. Evaluating the Performance of a Financial Advisor
  14. Work with a Fiduciary Financial Advisor in Minnesota

 

What is a Fiduciary Financial Advisor?

A fiduciary financial advisor is a finance professional who is obligated to act in their client’s best interest. They provide financial advice and recommendations based on the client’s specific needs, goals, and circumstances rather than focusing on products or strategies that might benefit the advisor more than the client. 

For example, a fiduciary financial advisor can’t recommend a mutual fund that gives them a nice commission unless this mutual fund is the absolute best product for their client. When you work with a fiduciary, you don’t have to worry about being “sold” products you don’t need. Your advisor is legally required to act in your best interest at all times. 

 

How to Find a Fiduciary Financial Advisory in Minnesota

To find a fiduciary financial advisor in Minnesota, search for advisors with certified designations such as Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC). You can use online resources like the National Association of Personal Financial Advisors (NAPFA) or the Financial Planning Association’s (FPA) database. 

Always verify the fiduciary status by asking directly or checking the advisor’s Form ADV.

At 360 Financial, we are financial advisors, financial planners, wealth managers, and fiduciaries. 

 

A woman considering her retirement plan.
Always verify the fiduciary status of an advisor by asking directly or checking the advisor’s Form ADV.

 

Is it Better to Have a Fiduciary Financial Advisor?

Opting for a fiduciary financial advisor can be beneficial as they are required by law to act in your best interest. This obligation reduces the risk of conflicts of interest and ensures that your advisor’s recommendations align with your financial goals. However, it’s also important to consider an advisor’s qualifications, experience, and fees to ensure they are a good fit for your financial situation.

 

Understanding the Fiduciary Standard in Financial Advising

The fiduciary standard in financial advising refers to a strict code of conduct to which advisors must adhere. This standard requires advisors to act in a client’s best interest, avoid conflicts of interest, and disclose any potential conflicts. It’s a higher standard of care compared to the suitability standard, which only requires advisors to recommend suitable products.

 

Ethical Responsibilities of a Fiduciary Financial Advisor

Fiduciary financial advisors are bound by ethical responsibilities, including good faith and trustworthiness. They must provide accurate and complete information and diligently monitor and manage a client’s assets. They are also responsible for maintaining confidentiality and avoiding conflicts of interest.

 

Impact of Fiduciary Duties on Investment Strategies

Fiduciary duties significantly influence investment strategies. Advisors must consider the client’s financial goals, risk tolerance, and time horizon when making investment recommendations. They cannot recommend any investments that are not the absolute best fit for a client. This typically results in strategies tailored to each client’s unique situation rather than a one-size-fits-all approach. 

 

Regulatory Compliance for Financial Advisors

Like other U.S. states, financial advisors in Minnesota are subject to regulatory compliance. They must adhere to the rules set forth by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). Compliance includes accurate record-keeping, transparent fee structures, and regular audits.

 

Conflict of Interest Management for Financial Advisors with Fiduciary Duty

Fiduciary financial advisors are required to manage conflicts of interest effectively. They must disclose any potential conflicts to their clients and take necessary steps to mitigate them. This ensures transparency and maintains the trust between the client and the advisor.

 

Fiduciary Responsibility in Retirement Planning

In retirement planning, a fiduciary’s responsibility is to provide advice that best suits the client’s retirement goals. This may involve suggesting suitable investment options, ensuring the client is maximizing their retirement benefits, and planning for a sustainable income during retirement.

 

The Consequences of Breaching Fiduciary Duties

Breaching fiduciary duties can have severe consequences. If a financial advisor does not act in the best interest of their client, they could face legal repercussions, potentially involving financial restitution and damage to their professional reputation. 

In some cases, advisors may lose their licenses or be banned from practicing. Clients who believe their advisor has violated their fiduciary duties can report their concerns to regulatory bodies such as the SEC or FINRA.

 

Fiduciary Duties in Estate Planning and Wealth Transfer

A fiduciary financial advisor’s role extends to estate planning and wealth transfer. They are expected to guide clients through the complex process of planning for the distribution of their assets upon their death. This includes understanding the client’s wishes, recommending appropriate estate planning tools (like wills or trusts), and potentially coordinating with attorneys or tax professionals. Moreover, they have to ensure a smooth, efficient transfer of wealth with minimal tax implications, always acting in the client’s best interest.

 

Evaluating the Performance of a Financial Advisor

Evaluating the performance of a financial advisor is not just about assessing the financial returns. It also includes reviewing how effectively they communicate, their responsiveness to your needs, and their ability to proactively address changes in your financial situation or the market. Advisors should provide clear, regular updates on your investments and be willing to discuss their decisions. Additionally, an advisor’s performance should align with your financial goals, risk tolerance, and investment timeline.

Remember, a fiduciary financial advisor’s primary obligation is to put your interests first.

 

 

Connect with a Fiduciary Financial Advisor in Minnesota

If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial. 

Founder and CEO of 360 Financial, Mike Rogers, has been a financial advisor for over 30 years. As a fiduciary, he always puts his clients’ best interests first and is dedicated to helping them achieve their big-picture financial and life goals. With his growing team, Mike is committed to providing outstanding financial services to successful professionals and business owners so they can live their lives on their own terms and leave a positive legacy. 

360 Financial is one of Minnesota’s best independent wealth management firms. 360 works with clients in Minnesota and across the US. If you’d like to work with a team that always puts you first and is committed to helping you create a lasting legacy, please get in touch. 

Schedule a 15-minute Call

 

 

Read More: 

Human vs. Robot: Is an Online Advisor or a Human Advisor Right for You?

40(k) Retirement Planning Essentials Everyone Should Know

 

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Financial Planning vs. Financial Advisor

Posted on by Trone

Financial Planning vs. Financial Advisor

What’s the difference between a financial planner and a financial advisor?

Written by Mike Rogers, President and Founder at 360 Financial

When you start to get serious about pursuing financial independence, you’ll probably begin to wonder about the difference between “financial planning” vs. “financial advisor.” Similar terms can cause confusion, but we’re here to help you understand these terms and their differences.

 

TABLE OF CONTENTS

  1. What is financial planning?
  2. What does a financial planner do to help their clients?
  3. What designation does a financial planner have?
  4. What is the difference between a financial planner and financial advisor?
  5. What does a financial advisor do to help their clients?
  6. What designations does a financial advisor have?
  7. Do I need a financial advisor or planner?
  8. Do I need to find a financial advisor or planner locally?
  9. What is the cost of working with a financial advisor?
  10. Key Takeaways

 

What is Financial Planning?

You have a financial goal but don’t know what steps to take to reach that goal. That’s where financial planning comes in: Financial planners help you create an actionable, achievable financial plan to help you meet your goals. A financial planner can help you reach long-term goals related to:

  • Budgeting
  • Saving
  • Retirement planning
  • Investing
  • Insurance

 

What Does a Financial Planner Do to Help Their Clients?

A financial planner creates long-term programs to help their clients reach their long-term financial goals. They help you chart a course for your life as it relates to your finances, analyzing every aspect—such as your savings, taxes, expenses, and investments.

Goals a financial planner can help you achieve include:

  • Saving to fund your child’s college education
  • Buying a new home
  • Saving to retire comfortably
  • Increasing profitable investments

One key aspect of a financial planner is that they provide targeted services. You’ll come in with a specific goal in mind, and they’ll help you reach that goal.

 

What Designation Does a Financial Planner Have?

Typical designations of financial planners include:

Make sure your financial planner has at least one of these designations before moving forward with them. The term “financial planner” is an unregulated umbrella term, so you’ll want to be sure that they have the proper designations before trusting them with your financial future.

Now that you have a full understanding of financial planners, we’ll dive into the difference between them vs. a financial advisor.

 

What Is the Difference Between a Financial Planner and Financial Advisor?

The difference is that while a financial planner helps you with a very specific goal, financial advisors are broader in their approach. Financial advisors typically offer the same services as financial planners, but they offer even more, including managing your investments.

Another key difference between financial planners vs. financial advisors is how you pay them. A financial planner will typically charge a flat hourly or annual fee, while a financial advisor often earns a commission on investments or products they sell. Some financial advisors earn a combination of commissions and flat fees, and others may charge a percentage of your overall portfolio per year.

Now, we’ll dive further into what exactly a financial advisor does to help you further understand the difference.

 

financial planning vs financial advisor
A financial planner will typically charge a flat hourly or annual fee, while a financial advisor often earns a commission on investments or products they sell.

 

How a Financial Advisor Helps Their Clients

While a financial advisor offers similar services to a financial planner, they also offer even more services, including:

  • Managing your investments
  • Acting as your stock broker
  • Advising and arranging insurance coverage
  • Strategizing estate planning
  • Making financial decisions
  • Executing your financial plan

While a financial planner will create your plan, a financial advisor will provide more hands-on services actually to help you execute that plan. 

 

Related: How to Find a Good Fiduciary Financial Advisor

 

Designations a Financial Advisor May Have

If a financial advisor is working with the public, they are required to hold a FINRA Series 65 license. On top of that license, they may also hold other financial certifications that are similar to those of a financial planner. These may include:

  • Certified Financial Planner (CFP)
  • Chartered Financial Analyst (CFA)
  • Chartered Financial Consultant (ChFC)
  • Certified Investment Management Analyst (CIMA)

The main designation to look for in a financial advisor is the FINRA Series 65 license.

 

Do I Need a Financial Advisor or a Financial Planner?

Choosing between a financial advisor and a planner will look different for everyone. The right fit for you depends on what your individual needs are. Before we jump into how to decide, remember that your needs will probably change over the course of your life. While one may be the best fit for you now, you may want to switch in a few years.

A financial planner is best for you if you:

  • Want help developing a long-term financial plan, but don’t need help implementing that plan
  • Want to understand how your finances will evolve over your lifetime
  • Have gone through a major life change, such as getting married
  • Are nearing retirement
  • Need help managing debt, saving for college or retirement, or minimizing expenses
  • Need help strategizing about asset transfers

A financial advisor may be the best fit for you if you:

  • Are looking for help implementing your financial plan
  • Don’t want to or don’t feel comfortable making financial decisions
  • Are looking for occasional financial guidance
  • Need help with a specific investment strategy

Again, your situation will likely change over your lifetime, so your decision isn’t permanent. You can always change your mind in the future.

 

financial planner vs financial advisor

 

Do I need to find a financial advisor or planner locally?

No, you don’t need to find a financial advisor or planner locally. In fact, doing so can be extremely limiting. The best fit for you may be just a Zoom call away, so don’t be afraid to consider financial advisors or planners that aren’t local.

 

What is the cost of working with a financial advisor?

Financial advisors can charge for their services in a few ways:

  • Flat hourly ($100 – $400 per hour) or annual fee (ranging between $2,000 and $7,500 per year)
  • Commission on investments or products (a certain percentage)
  • A certain percentage on your portfolio (typically 0.25% to 1% per year)

It all depends on which financial advisor you choose, and how they charge for their services.

 

What are the 4 Pillars of Wealth Management?

 

Key Takeaways

  • A financial planner creates a plan, while a financial advisor creates your financial plan AND executes it.
  • A financial planner offers targeted services, while a financial advisor can help with more general financial services.
  • Choosing a financial planner vs. a financial advisor depends on your specific circumstances and needs, and these may change at any time.
  • Looking for a financial planner or advisor locally limits your options and may stop you from finding the best fit.

 

Next Steps

When you’re looking for a financial advisor, look for one that puts your needs first. At 360 Financial, we have a process centered around you, your goals, and what matters to you. We want to get to know you and your family, your financial goals, and any frustrations you have.

If you decide to work with us, we’ll mutually decide if there’s a comfortable fit—after all, we want to make sure your needs are being met. Book a 15-minute introductory call with 360 Financial today.


 

 

Top Financial Planning Articles

Want to keep learning about financial planning? Keep reading:

Financial Planning for Young Adults

Financial Planning for Retirement

 

 

About the Author

Mike Rogers, AIF®

This article has been reviewed by Mike Rogers, 360 Financial President and Founder of Wayzata-based 360 Financial. Prior to establishing the firm in 1995, he spent seven years with two of the nation’s largest investment firms. As a fiduciary, he utilizes his 30+ years of experience to plan and implement strategies tailored to address the issues and concerns of qualified retirement plan trustees, high-level professionals, and thriving business owners.

Mike holds the series 7 and 63 security registrations with LPL Financial. He served six years on the Benilde-St. Margaret’s Board of Directors, chairing the Investment Committee for many of those years. Through his membership in the Twin West and Wayzata Chambers of Commerce, he is able to better support business owners. And belonging to the LPL Financial Chairman Club and the Financial Planning Association allows continual support for the financial industry.

 

Schedule a Call

At 360 Financial, you and your financial goals come first, always. We’ll help you understand all the pieces of your financial puzzle, and work toward your financial goals for long-term success. Book a 15-minute introductory call with us today.


 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.