There’s an idea that is rampant in financial services, insurance, and financial sales today. It’s that real financial advice from an investment adviser is only available to wealthy investors and that a broker’s product recommendation is real advice. This idea makes headlines. It is deeply embedded in brokerage industry culture, practices and talking points.
There’s only one problem. This idea is just not true. It is not based on the facts or the law and it defies common sense. It’s a misconception, a grand mythology. The truth is incidental advice is not real advice and many investment advisers stand ready to serve all investors – including small investors. The truth is there are no incidental investors.
This new website, noincidentalinvestors.org, aims to show small investors that investment advisers can and will advise them. It offers investors in the Washington DC area assistance identifying local investment advisers. These are advisers who work under a fiduciary standard at all times and serve investors that have specific needs or more modest means. These advisers do not sell products and have no investment asset or income minimums.
This project, “No Incidental Investors” offers to provide small investors in the Washington DC area who fill out a simple form with the names at least two local advisers. Advisers who only provide real fiduciary advice and stand ready to serve on a fee for service basis. The website also offers information to explain to consumers why brokers’ advice, according to the law, is incidental to selling products.
This project is undertaken with the simple idea that incidental advice is not real advice and everyone should get real advice. Because, after all, there are no incidental investors.
The Institute for the Fiduciary Standard, the Garrett Planning Network, the National Association of Personal Financial Advisors (NAPFA) and the XY Planning Network have organized this project. Information about these adviser groups is here.
Institute for the Fiduciary Standard
The Institute for the Fiduciary Standard formed in 2011 as a non-profit to provide research and education on the vital role of the fiduciary duties for investors and the capital markets. The Institute’s Best Practice advisors affirm their fiduciary and fee-only practices to the SEC. See www.thefiduciaryinstitute.org.
Since 1983, the National Association of Personal Financial Advisors (NAPFA) has provided fee-only financial planners across the country with some of the highest standards for professional competency, comprehensive financial planning, and fee-only compensation. Today, with more than 3,200 members, NAPFA is the leading professional association dedicated to fee-only financial planning. Learn more at https://www.napfa.org/.
XY Planning Network
XY Planning Network is the leading organization of fee-only financial advisors who specialize in helping members of Gen X and Gen Y. Our advisors stand out from the rest of the financial planning industry because of the way they put their clients first. https://www.xyplanningnetwork.com
Garrett Planning Network
The Garrett Planning Network has a nationwide membership with hundreds of independent, fee-only financial planners providing advice to people from all walks of life, without minimum account requirements, sales commissions, or long-term commitments. See: http://www.garrettplanningnetwork.com