What is a Fiduciary and why is it important for my financial advisor to be a fiduciary?

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Simply stated, financial advisors that adhere to a fiduciary standard are required to always put the interests of their clients first.  CFP®s must act as fiduciaries when providing any type of financial advice. 

 

Lamke Financial LLC is an independent Registered Investment Advisory (RIA) firm registered with the State of Missouri.  RIA firms are required by law to act as a fiduciary.  This is very different from broker-dealers and their representatives, who typically provide recommendations for a commission.  Broker-dealers and their representatives are not required to act as a fiduciary.  They simply must make suitable recommendations for a client.  This is a different standard of care, but most consumers are unaware of the difference, as any of these professionals may call themselves a financial advisor.  

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Please note that being a Registered Investment Advisor does not constitute an endorsement of Lamke Financial LLC by the state of Missouri nor does it indicate that our firm or its advisors have attained a particular level of skill or ability. 

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Why is it important for my financial advisor to be a CFP®?

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Anyone can refer to themselves as a "financial advisor" or a "financial planner".  But, only professionals who have fulfilled the education, certification, training and renewal requirements (including rigorous continuing professional education) of the CFP® board can display the CFP® certification marks.  That is why it is essential to seek out a CFP® when considering who to hire as your financial professional.  

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Here is what must be achieved in order to hold the CFP® designation:

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• Education - Complete a comprehensive course of study, which covers the financial planning curriculum approved by the CFP® Board.

• Examination - Successfully complete the CFP® Board's comprehensive examination, which tests an individual's ability to integrate and apply financial planning knowledge.

• Experience - Three years of financial planning related experience must be attained before the CFP® marks can be used. 

• Ethics - Ascribe to the CFP® Board's rigorous code of ethics and additional requirements, as mandated.  This includes adhering to the fiduciary standard. 

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Why is it important for my financial advisor to be a licensed CPA?

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Among other financial areas, CPA's possess a deep knowledge of general business, financial statement preparation and income taxes.  They can provide unique insights as a financial advisor that can compliment the considerable knowledge and skillset possessed by a CFP® professional.  If your advisor is a State of Missouri licensed CPA, you can take comfort knowing that you are working with a financial professional who had to fulfill the following qualifications and requirements:

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• Education - 
  - Successfully earn a bachelor degree or above, with an accounting concentration  
  - Earn 150 semester units from an accredited university or educational institution 
  - Earn 33 semester units of accounting courses 
  - Earn 27 semester units in general business courses

• Examination - Successfully complete the American Institute of Certified Public Accountants (AICPA) administered CPA exam.  This is a rigorous sixteen hour exam tested in four separate sections. 

• Experience - One year of public or non-public accounting experience. 

• Ethics - Pass the AICPA ethics exam.

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