In 2020, we re-branded from Action Point Financial to Fiduciary Financial Advisors. Our old name worked fine. So why disrupt? As Fiduciaries, it is important to put our fee-only approach to financial planning & investment management front and center.
Watch this video to learn more about why we changed and why being a Fiduciary Advisor is so important to us (and you!). To learn more visit: https://forfiduciary.com/
Ready or not, the holidays are headed our way. Soon, we will be carving the turkey, scrambling to get our last-minute gifts, hearing jingle bells in our sleep, and pulling out our ugly sweaters for their once a year use. Although family gatherings may look completely different this year, safely in-person or virtual family conversations will still be in our midst.
Remember that unspoken rule that you shouldn’t talk about money or politics at family gatherings? You know - the rule that somehow always gets broken at holiday parties? Well, I’m here to help you be prepared with what to say. Let me back up: I’m here to help you with the money convos - not the political side. You’re on your own for that one.
Financial Advisors are one of the many money topics that get brought up. Whether you are currently working with an Advisor or are on the hunt for one, knowing how to hire a Financial Advisor is a skill worth knowing. I’m not encouraging you to break the unspoken rule, however, I am encouraging you to continue reading to impress your Uncle with this valuable piece of wisdom.
Did you know that there are Financial Advisors who have no legal obligation to put your best interests first? Not only that but they can recommend investment products to you that actually pay them more. This sounds crazy - I know. The craziest part? Over 90% of so-called “Financial Advisors” are NOT fiduciaries. You don’t want to ever question if your Financial Advisor advised something because it was best for you or for them.
Financial Advisors who are true fiduciaries are held to a legal standard where they must put your best interests first. They cannot earn commission off a product they recommend. They will disclose any conflicts of interest.
Financial Advisors can get paid in many different ways. Commission-only, fee-only, fee-based are all examples of how they receive a paycheck. Make sure you fully understand how they get paid and what they will charge you. If they aren’t giving you a straight answer on their fees, this should be a red flag.
Want a hint? Fiduciary Financial Advisors are classified as fee-only. They could charge you on a flat fee, an hourly rate, retainer method, a percentage of assets under management, or a combination.
Don’t forget about your investment portfolio’s expense ratio. The expense ratio is charged by the investment company to the investor. This fee reflects the cost of the investment company’s management and operating expenses. Even though this percentage does not go to your Advisor, it’s important that they are transparent about your all-in costs.
Transparency is key here. Don’t leave the Advisor’s office without a complete understanding of how they get paid and how much you will pay.
Communication and access to your Advisor are important. You should have a clear idea of how your relationship will work. Will you meet once a year? Twice a year? More? How can you get a hold of them? Everyone has a different idea of how often they want to talk to their Advisor.
Be on the same page with the expectations of your relationship and also the Advisor’s capability to meet those expectations.
When you are interviewing your Advisor - remember, you are hiring them - ask questions and listen to how they respond. Do they take the time to explain and teach? Are they patient with you? Most people like to have a basic understanding of why their money is doing what it is doing. Advisors need to be good educators and focus on making sure you understand. Who wants to leave their meeting confused and unsure?
No one wants to be bouncing around Financial Advisors throughout their lifetime. In a perfect world, you and your Advisor could have a relationship that lasts your entire life. If we go into it with that mindset, you need to click with them. Relationships matter! Feel out how you jive with them and make sure it is a good match.
Do you love the company but just aren’t clicking with one Advisor? Be honest with the Advisor and ask if they recommend another Advisor from their company. This is your financial life and working with someone you enjoy should be a priority.
What are the beliefs and principles that they will make investment decisions based on? Do they align with your goals? An Advisor should be able to clearly explain this to you. Another great question to ask them is, do you or would you personally invest in this fund? That answer can lead you in the right direction.
With this guide, you can now go confidently to your holiday parties. You may even want to break the unspoken rule. I don’t blame you - people need to know this. Do you or a family member already work with an Advisor? Challenge them to answer any area of this guide you may not know.
Hire a Financial Advisor who is a fiduciary, transparent of their fees and your all-in costs, clear about your relationship, a good educator, someone you click with, and has a defined investment philosophy.
The holiday season always flies by. Soon the ringing of the jingle bells will be replaced with the ringing in of 2021. Start your new year off knowing how to hire the right Financial Advisor and doing so confidently.
Here, at Fiduciary Financial Advisors, we take our fiduciary oath seriously. We hold these five principles:
I will always put your best interests first
I will avoid conflicts of interest
I will act with prudence; that is, with the skill, care, diligence, and good judgment of a professional
I will not mislead you, and I will provide conspicuous, full, and fair disclosure of all important facts.
I will fully disclose, and fairly manage, in your favor, any unavoidable conflicts
The information contained herein has been obtained from a third party source which is believed to be reliable but is subject to correction for error. Action Point Financial Planning LLC does not give legal or tax advice. The information contained does not constitute a solicitation or offer to buy or sell any security and does not purport to be a complete statement of all material facts relating to the strategies and services mentioned. Past performance is not a guarantee or representation of future results.
December 4, 2019 - Action Point Financial Planning, an independent financial planning firm based in Grand Rapids, Michigan, has been named a recipient of WealthManagement.com’s inaugural Thrive Awards, the first-annual list of the nation’s fastest-growing Advisors.
“I am thrilled to learn that we have received this award! Five years ago, all I had was an idea - the role of a true Financial Advisor could be significantly improved compared to what I saw happening out in the marketplace.” said Ben VerWys, Founder and CEO at Action Point Financial. “At the time, there wasn’t nearly the emphasis on Fiduciary advisement that continues to grow so rapidly today. Much of our success is directly related to the fact that at Action Point, we do the work the right way. What I mean by the ‘right way’ is a laser focus on stewarding our client’s investments and managing their financial planning from a strictly Fiduciary standpoint. Our ‘math wins’ philosophy means we have no products to sell, a strong vested interest in seeing our clients lives improved, and an active effort to mitigate all conflicts along the way. These things are clearly laid out in our Fiduciary Oath that we make to all clients. It has been exciting to be part of the rapid evolution of financial advice over the last 5 years, but to receive an award specifically for our participation in that growth means we’re making the impact we set out to deliver.”
A total of 121 individuals and teams made the list this year, which was compiled by measuring percentage revenue growth over the previous three years. The average revenue growth of the 2019 Thrive Advisors was three times the industry average, as calculated by McKinsey & Company’s PriceMetrix.
To qualify for the WealthManagement.com 2019 Thrive Awards list, applicants had to be based in the U.S., offer financial services to individual clients, and have a minimum revenue of $100,000. Applications were accepted from individuals, teams and companies of all types and sizes—including solo advisors, ensembles, practices, family offices, RIAs and IBD reps.
The complete 2019 Thrive Awards list is available here, and will be featured in the December 2019 issue of Wealth Management magazine.
The Grand Rapids Business Journal recently wrote a feature article about Action Point titled 'Investment Industry Still Struggling With Commissions vs. Fees'.
Read MoreEach year, on November 11th, I attend a Veteran's Day assembly at my daughter's school that honors veterans of all generations. It's a point of pride for the kids to be connected with a relative or family friend that participates in the assembly so I make it a point each year to attend. And honestly, the feeling that I get when I can see that my daughter is truly proud of me is not something I want to miss.
Action Point is a veteran owned business and I've often thought that we have unique advantages and perspective because of this. It's interesting though because the hiring world seems to be very polarized when it comes to hiring veterans. I personally can credit much of my career success thus far to the opportunities that were opened up to me because of my military service. However for every one of me, I can find an article or research evidence that shows when push comes to shove, many companies do not look to ex-military members for high level expertise.
We are proud to be veteran owned and our desire would be that our clients and potential clients are more inclined to hire us because of this than less. Being former military in no way undermines our ability to provide helpful financial planning techniques or hinders our ability to identify compelling investment opportunities.
Here's a quote for you to ponder:
At first read, that may seem like it's talking about former war heroes or veterans and it certainly is applicable in a military way. However you may be surprised to learn that is a direct quote from financial educator Nick Murray, addressing the task at hand for my firm; to help people navigate to and achieve financial success. As CEO of Action Point, I became a Financial Advisor to help people like you become a hero to yourself and your family. Together, we can help each other be heroes, starting by getting laser focused on achieving your long-term financial success. To have a conversation about, contact me via our Contact Us page. And remember, veterans are veterans every day.
Lastly, for my military friends, check out The Veteran Mafia, a great perspective post from Patriot Boot Camp addressing why each of us veterans has a unique opportunity post service.
Warm regards,
Ben VerWys - Senior Financial Advisor
When you hear us talk about truly putting our client's best interests first and advising clients the right way, we want you to know it's not just cheap talk. Aside from believing in completely transparent relationships, aside from being anti-commissions, aside from dropping the licenses that allow us to charge commissions, one of Action Point's Founding Partners and Senior Financial Advisor, Ben VerWys has been admitted to the Paladin Registry. According to Jack Waymire, Founder of The Paladin Registry and author of Who's Watching Your Money?, Paladin, is "the only online service that vets and rates the quality of financial planners and advisors. We ask the right questions so investors don't have to. And we know the critical differences between good answers (benefit investors) and bad ones (damage investors)."
Paladin uses an objective research process to determine who is profiled in the Registry. Advisors must be willing to practice full transparency. They cannot withhold information that may cause investors to reject them. Next, they must complete Paladin’s rigorous due diligence process that focuses on their expertise and ethics. And lastly, they must also score in the 90th percentile or higher when Paladin’s proprietary algorithm rates the quality of their credentials, ethics, business practices, and services.
Fiduciary Financial Advisors is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.
