How Do You Fit into Your Financial Adviser's Plan?

If you're like most potential financial advisory clients, you've heard advisers explain how they fit into your financial life. Advisers play the part too, giving you as the client the best audition, demonstrating their success, their prowess in the industry and their ability to be as effective as possible in creating the returns you need.

As a longtime financial adviser, I've come to believe that clients need to spend more time considering not just how an adviser fits them, but how your finances, goals and situation fit into a specific adviser's business model.

In fact, I think this could be one of the most important questions to consider. The answer is just assumed: The adviser is working for the client, and they want to keep the client forever. However, this may not always be the case.

What Are Your Adviser's Motivations?

Understanding the profit motive of your adviser can help you decode the rationalizations of the recommendations they are making. A careful review of the three most prevalent business models may lead