I came across this article last night and found that it captures many of the frustrations and distrust people have with the financial services industry. Most of the time I’ve heard these frustrations expressed as questions: How is my advisor making money off me? Is my advisor acting in my best interest? How do I even start the process of vetting an advisor and determining if he or she is right for me?
Manisha Thakor, Director of Wealth Strategies for Women for The BAM Alliance, wrote an article that I think goes a long way in addressing these frustrations. While the article is aimed at women specifically, I think the analysis that Ms. Thakor provides is valuable to anyone. You can read the article here: Fiduciary vs. Suitability Standard
At the end of the day, you deserve to know whether or not your advisor has chosen to legally obligate himself or herself to act in your best interest. If not, perhaps you should be seeking financial services elsewhere.