of new Verdence/PRO clients come to us loaded with funds, investments or insurance that they were paying too much for or did not need at all.
Data Source: July 1, 2017 – February 1, 2021; Verdence Capital Advisors /PRO clients that have had at least one prior non-Verdence advisor
“I was a sports advisor for many years and was proud to help many young men build their careers. During that time, I saw a lot of bad advice given to athletes by those they thought were their trusted financial advisors. I knew that these players needed someone like me who could put a team together that really cared about giving them sound financial advice.” —Rich Rosa, Verdence/PRO Partner
Vocabulary Toolbox Top
Top 8 financial terms that can make or break your future.
(see our Life Resources page for helpful blogs, articles, and videos on financial education topics)
It’s a good thing to hear when searching for a financial advisor. Fiduciary duty is a legal responsibility to put a client’s interests before theirs. They are required to show you how they’re compensated and any outside conflicts of interest that could affect the recommendations they make. A fiduciary cannot, for example, recommend anything that doesn’t benefit you but instead provides a kickback to them.
Fee Structure: How is your advisor compensated.
- “fee-only” – you pay a flat percentage of your total investments;
- “commission” – advisors earn a commission on each transaction they make;
- “hourly” fee – you are charged for the time advisors spend giving you advice.
an investigation and research of a potential investment or product to confirm all facts, that might include the review of financial records and reports.
the movement of money up and down, a rate measured by financial returns over a given period.
the absolute and real loss of money.
refers to the amount of market volatility, ups and downs, an investor can tolerate. It’s important to understand and establish your risk tolerance with your advisor prior to making a financial plan.
(HNWI) is someone with roughly $1 million+ in cash and/or other investments that can easily be converted into cash. (UHNWI or Ultra-high-net-worth individual is someone with roughly $30 million+ in cash)
Combining your spending and savings accounts into one. It gives you an artificially inflated perspective of how much money you can spend—meaning, you think you have more money to spend than you do in a given moment because your spending and savings allotments are seen as one big amount. It is one of the quickest ways to spend your money too quickly. Don’t be a Spaver.
Non-fiduciary advisors are held to the “suitability standard”—which means they only have to prove that an investment is suitable for their client at the time of its purchase, not that the advice was in the client’s best interest. If you don’t know if your financial advisor is a fiduciary…It’s important to ask!
What’s the first step?
Call or email us. We’ll do the rest. And don’t worry. We respect the sensitivity of your private information.