Protect Yourself From Financial Salespeople

January 10th, 2020
January 10, 2020
Joseph Vecchio CPA, CFP, MBA

Anyone can call themselves a financial advisor, wealth counselor, financial coach, etc… ? They can LEGALLY work in a capacity that’s NOT IN YOUR BEST INTEREST! Sad but true.

Currently most people who offer financial advice are held to a much lower standard, called the suitability standard. The suitability standard means that whatever recommendations your advisor gives, you merely need to be “suitable” for someone in your situation. The advice does not need to be in your best interest! In many cases they are influenced by their ability to earn commissions. Also these salespeople may be influenced by sales quotas that their firms impose. And this is legal!?

The Fiduciary Standard means financial advisors MUST put their clients’ best interest first and must disclose real or potential conflicts of interest. You will receive CONFLICT-FREE ADVICE.

Most everyone offering financial advice through insurance sales, bank and credit union wealth departments, or brokerage firms ARE NOT fiduciary advisors in all of their dealings with clients. Some marginally legal behavior results in expensive annuity, whole life insurance and other financial product sales that benefit the salesman over the client.

So, how can you protect yourself?

DEMAND your current broker/wealth manager sign the “FIDUCIARY OATH”!!! Why trust and/or work with anyone who does not work in YOUR BEST INTEREST?

So how do you find Fiduciary financial advisors, who ALWAYS work in YOUR BEST INTEREST?

Since most Fiduciary Financial Advisors don’t sponsor golf tournaments, football games you may not know how to find one.

The National Association of Personal Financial Advisors (NAPFA) (, which has more than 2,400 members nationwide. Its members are fiduciaries, Certified Financial Planners™ and they do not accept commissions. Members of NAPFA are verified to ONLY serve clients under the highest standards of fee-only compensation, and every year sign and renew a FIDUCIARY OATH. All members of NAPFA are fully independent and are not tied to a large financial firm, so they find the BEST SOLUTIONS FOR YOU & YOUR FAMILY, and do not have to keep to a corporate script when recommending investment options!

You can be assured that the advice you receive is coming from and advisor that is on YOUR team, NOT a SALESPERSON trying to hit a sales goal!

NAPFA members’ motivation is to develop a LONG-TERM RELATIONSHIP of TRUST by helping you accomplish your goals.

Until the financial industry reaches that level of professionalism, you have to work a little harder to understand the background, training, incentives, and legal duty of your financial advisor.

Joseph Vecchio, CPA, CFP®, MBA
Joe believes that people are being exploited by financial salespeople who are merely motivated by quotas, product sales and commission-based income! Shore Financial Planning was founded to provide peace of mind through conflict-free, value-added advice.