For oversight of the administration of the TARP (Troubled Assets Recovery Plan), that is, the $700 billion recovery plan for the financial markets, the US Treasury made an interesting choice. They decided to go with the Fee-Only Financial Advisory firm of Ennis Knupp & Associates. Read the article from Forbes here.
The interesting part is that this advisory is a part of the small group of Fee-Only Financial Advisors across the country – according to some figures, fewer than 2% of all “financial advisors” operate in this conflict-free mode. The remaining 98% sell products and make commissions from the sales. As you might expect, any advice offered by a commission-oriented advisor will almost always include the product for which he is compensated. If there is no product sale involved, that’s one less conflict of interest in the relationship.
This doesn’t mean that the Fee-Only Financial Advisor is better. There are scoundrels in all corners of our world these days – but this is one additional “hurdle” that helps you to ensure your financial advisor is working in your best interests at all times.
I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 20 years of experience in the industry. . Read more from this author
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