401k Advisors

More people are flocking to financial planners these days, convinced they need professionals to help them navigate the market's stormy seas.

Unfortunately, not all planners are created equal. Some are thinly disguised investment salespeople, and many don't have the background or inclination to offer true, comprehensive financial advice.

So before you sign on with a planner, or implement the advice offered, make sure you know these secrets the planner may be keeping. Real financial planners take seriously their duties as fiduciaries -- professionals who are trusted to think of their clients' needs first and foremost.

Most of those who call themselves planners, though, are really in the business of selling investments. As such, they may face scrutiny from various government agencies over their sales tactics. But instead of being obligated to create the best financial plan for you, they're only required by law not to sell you something that's utterly unsuitable.

Your best bet: Ask for, and read, a copy of any code of ethics with which your planner is required to comply (usually as part of his professional designation). It may be slow reading, but you'll get an idea of the standard by which your planner operates.

The word "fiduciary," for example, does not appear in the Society of Financial Services Professionals' code of professional responsibility, but members of the fee-only National Association of Personal Financial Advisors are required to take a fiduciary oath promising "to act in good faith and in the best interests of the client."

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