Are Financial Advisors True Professionals?

Written by Chris Cooper, CFP® | 15 October 2012

Many financial advisors would like to think of themselves as professionals on par with lawyers and accountants. But as some industry observers are quick to point out, financial advisors aren't professionals in exactly the same way as those who work in those other professions.

What's the difference between a financial advisor and an accountant? The difference isn't that financial advisors don't act like professionals—many do, and these individuals take their responsibility to their clients very seriously. The issue is that there is no single professional code that governs the behavior of all financial advisors. Doctors have the Hippocratic oath, lawyers must adhere to professional codes of conduct or risk losing their license to practice, and accountants are bound to the American Institute of Certified Public Accountants' Code of Conduct. But financial advisors instead have a patchwork of codes and associations, which aren't universal within the profession.

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What's the Deal with the Fiscal Cliff?

Written by Chris Cooper, CFP® | 08 October 2012

If you've been paying attention to the news lately, you may have heard something about the "fiscal cliff," or the combination of tax increases and spending cuts that are scheduled to take effect if Congress does not take any action between now and January 1, 2013. If the U.S. goes off the fiscal cliff, it could send the economy into a tailspin, possibly triggering another recession.

How bad could the fiscal cliff be? Pretty bad. If the changes take place, they would have a $502 billion impact on the economy, possibly leading to increased unemployment and decreased economic growth.

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Moving Forward After a Job Loss

Written by Chris Cooper, CFP® | 28 September 2012

While the economy seems to have been looking up lately, that doesn't mean that everything is rosy. In California, the unemployment rate currently sits at just above 10%, which means that there are still a lot of people out there looking for work.

Life can be tough if you're unemployed and job searching, but it's important to not lose hope. Instead, embrace proactive techniques that will improve your chances of getting a new job.

One of the first issues you need to consider is how to address your separation from your previous employer. If you left your last job because the company closed or as a result of a major layoff, that makes it easier to explain your current lack of employment. But if you were let go because of performance issues or for another reason, you need to prepare a short, reasonable explanation for what happened.

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Does the Fiduciary Standard Really Protect Clients?

Written by Chris Cooper, CFP® | 24 September 2012

Financial advisors often point to the fiduciary standard as the most useful tool for protecting clients. But is the fiduciary standard all that it's cracked up to be? Some people would say no.

Fiduciaries have an obligation to act in the best interest of their clients at all times. Often, financial advisors who are fiduciaries (such as those individuals who have earned the CERTIFIED FINANCIAL PLANNER™ professional designation) are perceived as being better able to serve clients, but that doesn't mean that every fiduciary is equaled committed to acting in a client's best interest at all times. Some less ethical fiduciaries may try to skirt around the rules, as discussed in a recent Wall Street Journal blog post that described a CFP® advisor who sold a client an annuity and then charged him both a commission and a fee based on the percentage of ongoing assets under management.

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