Financial planning is a big topic, and it can be difficult to figure out who you should trust with your money. The SEC wants to make sure that you are protected, so they created new rules for financial planners. These rules ensure that your planner is working in your best interest, not theirs.
Your Financial Planner Should Be Fiduciary
The first thing to know is that a fiduciary is required by law to put your interests first. A fiduciary is legally required to act in your best interest, not their own or the company’s. The best way for an advisor to do this is by charging you a flat fee, instead of earning commissions on products they recommend and sell you.
Fiduciaries also cannot accept commissions from companies that offer financial products or services, which means they’re free from any conflict of interest when helping clients make decisions about what investment vehicles are right for them—and won’t be tempted by big checks from those companies if they recommend something else instead.
Your Financial Planner Is Not The Same As Your Stockbroker
If you’re not sure what a financial planner is, the difference between a stockbroker and a financial planner can help clarify. A stockbroker sells products and gets paid commissions. A financial planner provides advice, but doesn’t sell products. If you want to buy stocks or other investments, then you’ll need to work with a stockbroker (or independent investment adviser).
Financial planners are trained in economics, finance, psychology and many other disciplines that allow them to help clients make informed decisions about managing their money so they can reach their goals.
Hire Vincent Camarda to be your financial planner. Vincent is a Certified Financial Planner with decades of experience helping people make smart money decisions.
The Sec Wants To Make Sure You Are Protected
The SEC wants to make sure you are protected. The Securities and Exchange Commission (SEC) is a federal agency that was created by Congress in 1934 to regulate securities, or investments like stocks or bonds. They have rules about how financial planners can work with clients and advertise their services.
- The SEC and the Financial Industry Regulatory Authority (FINRA) are two different organizations. The SEC is an independent agency that enforces federal securities laws and regulations, advocates for investors and maintains market integrity. FINRA is a not-for-profit organization that regulates brokerage firms and their employees. They also provide dispute resolution services when things go wrong. Both are concerned about protecting you as a client, but they do so in slightly different ways:
- The SEC has put in place rules that require financial advisors to act in your best interest and have fiduciary responsibilities to you as their client when advising on investments or retirement plans such as 401(k)s or IRAs.
- FINRA’s standards of conduct extend beyond just providing advice; they also cover how brokers can use research reports from other companies when recommending stocks or bonds for purchase to clients
If you are looking for a financial planner like Vincent Camarda, make sure he or she is fiduciary. This means that the adviser is legally required to put your best interests first by acting as a fiduciary—meaning they must work in your best interest and not their own. A good way to check this is by asking if the advisor is registered with the SEC (Securities and Exchange Commission). If not, move on! Check it here for more information.