So, what is actionable here? You need not only an advisor who is willing and able to find you the best courses of action as to the planning aspect of your finances, but one—perhaps not the same person—who will find the best product in each category that you need. Let’s focus now on individual professionals and their services and relationship to you.
But first, consider this before we examine types of professionals: For complex constitutional law reasons, the new fiduciary rule can only cover IRAs and tax-qualified plan advice and product sales. Therefore, the rule that applies to a professional who advises or sells in connection with these products does not apply even when that same individual provides or advises on any other form of investment, referred to as “nonqualified or non-qual,” and that extends to credit products and disability or long-term care insurance. Does that mean you are “at risk” of bad advice or worse using a professional for everything other than IRAs and 401(k) advice? No. People are people, including advisors. They go to synagogue, care about your kids and you, love their spouses, and are kind to neighbors and animals. You can come to trust them using the usual mix of indicators. Use the advice that follows in the next section, but because of the high-stakes nature of this advice, keep the potential of complaint to authorities in your back pocket….