Navigating

The Right Advisor-Type Choice Prevents a Lifetime of ‘Advisor Remorse'

Like many things in life, getting to Your Number comes from a combination of good planning and good adjusting. The challenge is to decide whether to do the planning and adjusting yourself or with the help of a professional. And if a professional, what's the REALLY Smart choice?

Brokers or Insurance Agents-Not Smart
We're sure most brokers and agents would personally intend to do their best for clients. But they're not independent, so their first obligation is to follow policies that support the interests of their employer's bottom line.

As a result of historical practices and inherent conflicts of interest in the application and revenue sharing of fees and sales charges, recent regulations put forth by the Securities and Exchange Commission (SEC) now requires brokers and other professionals who are not considered fiduciaries to add the following disclosure:

"Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and or salespersons' compensation, may vary by product and over time."

Broker business practices are held to suitability, not a fiduciary standard. The suitability standard essentially states that a broker must make reasonable efforts to insure that the products they are recommending are appropriate given the client's financial situation and circumstances. Penny stocks for Grandma might not be suitable. Selling a bond to Grandma that has the highest commission for the broker could be suitable.

The sentiments on brokers of Warren Buffet, America's second richest billionaire:

"The broker is not your friend. He's more like a doctor who charges patients on how often they change medicines. And he gets paid far more for the stuff the house is promoting than the stuff that will make you better'

There are enough mysteries in the paycheck replacement business, isn't the last thing you need is concern about whose interest your navigator is putting first.

And just because your advisor doesn't work for an easily identifiable brokerage firm like Merrill Lynch or Smith Barney doesn't mean he/she isn't a broker. Many brokers are affiliated with broker-dealers that aren't household names or are located in banks.

The REALLY Smart Hire an RIA (Registered Investment Advisor)
A fiduciary standard which dictates that, by law, the fiduciary will act solely in the best interest of the client. Once we have worked together to get you on track to Your Number with your PRP, we recommend periodic checkup meetings to make sure that you and we stay on track. Your PRP is customized to your situation for a given snapshot in time and while it's a great tool for getting you launched in the right direction, chances are your situation will change over time, whether that means new goals or new life circumstances.

• Meeting opportunities to keep your portfolio on track to Your Number:
• Monthly Investment Report. Prepared by Fidelity Investments, your account custodian.
• Quarterly Report. Prepared and mailed to you by Madden Funds Management.
• Annual PRP review and revision.

Getting There With Madden as your Fiduciary Navigator
With Madden on board as your navigator you can expect to maximize the retirement income process from start through all the years of paycheck replacement. A personal Paycheck Replacement Plan (PRP) aligned to your needs and goals minimizes emotional decision making when harsh weather hits.