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Evaluating Your Financial Advisor

"This year's evaluation might be a bit different from most because of the significant volatility we experienced in the markets.... Learn exactly what you are paying ... Discuss fee transparency ... Understand your investment costs ... Determine whether your advisor is a fiduciary ... Get a list of the services you should be receiving ... Check your advisor's background ... Make sure you are getting leading-edge advice ... Confirm that your advisor has no conflicts of interest ... Check the marketplace[.]"

Independent Financial Advisor Fee Comparison: All-In Costs

"[T]he reality is that the portion of a financial advisor's fees allocable to investment management is actually not that different from robo-advisors now, suggesting there may not be much investment management fee compression on the horizon. At the same time, though, financial advisors themselves appear to be trying to defend their own fees by driving down their all-in costs, putting pressure on product manufacturers and platforms to reduce their own costs.... [E]ven as financial advisors increasingly shift more of their advisory fee value proposition to financial planning and wealth management services, advisors are still struggling to demonstrate why financial planning services should command a pricing premium in the marketplace."

What Do Plan Participants Consider When Choosing a Financial Advisor?

"[F]or nearly nine-in-ten (89 percent) of retirement plan participants, honesty and trustworthiness are the most important criteria in choosing a financial advisor. Eighty-five percent of retirement plan participants surveyed ... place the highest premium on a financial advisor's transparency and being kept in the look on what they are doing in regard to their investments. For eight-in-ten, a financial advisor's investment track record and fees or commissions charged are the most important factors in choosing an advisor. Other factors retirement plan participants consider important when choosing an advisor include having access to products from a variety of different companies (73 percent), website and online services offered (63 percent) and the renown of the financial advisor's brand or company (61 percent)."

Nine in Ten Consumers Believe Their Financial Advisor Puts Their Interests First

"Overall study results showed only 43 percent of defined contribution plan participants discussed the advantages and disadvantages of potential rollover actions with someone.... [P]articipants who regularly work with financial advisors are more likely to have discussed the advantages and disadvantages of potential rollover actions than those who do not work with a financial advisor (60 percent vs. 30 percent).... [W]hen working with a financial advisor to make the decision to roll the money into an IRA, 3 in 4 participants report that they continue to work with this advisor. This implies that the rollover transaction is usually not a one-time interaction but is instead undertaken in the context of a long-term relationship."

Poll Shows Growing Financial Advisor Opposition to DOL Fiduciary Rule

"Financial Advisor opposition to the Department of Labor's fiduciary definition proposal has increased over the past year. This latest poll found that 91% oppose redefining the definition of fiduciary for financial advisors, up from 89% in August and 72% in February of this year. The redefinition would ban the earning of a commission on IRA advice, pricing millions of middle class investors out of the market on affordable advice."

The Value of a Financial Advisor to Plan Sponsors, 2022

29 pages. "91% of plan sponsors agreed that having a dedicated financial advisor provided them with guidance on critical plan design options as their company scaled.... Eighty-seven percent of plan sponsors agreed that when a Financial Advisor is offered with the workplace retirement plan, the company as a whole has better plan outcomes, including higher employee participation (86%) and more eligible employees being on-track for retirement (86%)."

Financial Advisor Designations and What They Mean

"There are over 100 different financial advisor certifications, so it can be confusing to determine what these letters mean, and which advisor might be best for you based on these qualifications.... [Here are] some of the most common financial designations and what they mean for you."

Working with a Financial Advisor Doubles Retirement Preparedness

"70 percent of those who work with a financial advisor are on track or ahead in saving for retirement, versus 33 percent of those not working with an advisor. Among people who have an advisor, more than a third had determined how much to save for retirement and half had contributed to an IRA; for people without an advisor, only 14 percent knew how much they'd need for retirement and 16 percent had contributed to an IRA[.]"

Does Your Financial Advisor Develop Your Annual Spending Budget Based on How Much You Have and How Long You Might Live?

"In a recent survey of Financial Advisors ... 25% responded that they based their approach on levels of pre-retirement spending, 22% indicated that they used a rule of thumb like the 4% Rule, 19% indicated that they used some variation of the Bucket Strategy, 16% indicated that they compared assets with future liabilities and 18% indicated some other approach. [The survey] concluded that not enough Financial Advisors were using 'math and science' to develop spending budgets for their clients and should be periodically comparing the client's assets with the client's liability ... similar to how actuaries measure the funded status of pension plans[.]"

Working with a Financial Advisor Lowers Boomers' Retirement Debt

"[B]oomers who developed retirement income plans generally were more optimistic about their retirement finances. Of the pre-retirees surveyed, 27% said they worked with financial advisors to develop retirement income strategies. Among pre-retirees who worked with advisors, 73% said that did not expect to carry debt into retirement."