As recently discussed in the Los Angeles Times, the juicing trend continues to be strong in 2015, particularly in Southern California. Nowadays, many consumers are seeking out cold-pressed options in lieu of the traditional centrifugal juicers.
SEE ALSO:
Signs You May Need a Financial Planner (and How to Find the Right One)
p>
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Apparently, cold-pressed juicers safely extract juice by slowly grinding and pressing fruits and vegetables, instead of shredding them with fast-spinning blades. The fast-spinning blades in a traditional juicer generate heat, which can destroy many of the nutrients and enzymes in your fruits and vegetables. Cold-pressed juicers reduce the heat and create a more nutrient-filled snack.
Similar to the cold-pressing juice aficionados, I’m a firm believer that the way financial advice has been delivered for decades can be greatly improved upon. I believe there is a safer way to extract financial advice from the experts—a way that puts your interests ahead of theirs, at all times.
The traditional model that many financial advisers have adopted and still operate under today is called the suitability standard. Put simply, if these advisers, often known as “brokers,” can determine that a financial product is suitable for your investment profile, he or she can sell it to you. They are not obligated to consider costs, expenses, or even best interests of the client.
If that’s not enough to cause some concern, these fast-spinning brokers are typically selling a product in return for a commission. Not only does this compensation model present a potential conflict of interest, but the client often pays more for advice than necessary. Needless to say, the characteristics of the suitability standard model can destroy the value often found in working with a financial professional.
The fiduciary model, on the other hand, is a more appropriate way to render financial advice, in my opinion. A financial professional adhering to the fiduciary standard is required by law to put your interests ahead of theirs at all times.
Fiduciaries, often referred to as Registered Investment Advisors (RIAs), typically charge a flat, transparent fee in return for the advice they provide. This fee usually comes in the form of a percentage of assets, an annual or monthly fee, or even an hourly fee. Regardless of how the fee is billed, the consumer is always informed of the amount and their interests are always put first. Costs, expenses, quality of product and more are taken into consideration before making any recommendations.
Due to the stricter obligations of a fiduciary, the advice process is often longer than a commissioned broker. A fiduciary will take time to extract the unique characteristics of the client and prepare a plan that puts them in the best possible situation for success. In addition, RIAs will typically render advice on more than just investments. This might include tax planning, estate planning, charitable giving, college planning, and more.
Financial professionals have been rendering advice under the suitability standard for decades. Like traditional centrifugal juicers, it is a solution, but not the best one. If you want objective, conflict-free financial advice, get it cold-pressed by working with an adviser who has adopted the fiduciary standard.
Taylor Schulte, CFP, is founder and CEO of Define Financial, a San Diego-based fee-only firm. He is passionate about helping clients accumulate wealth and plan for retirement.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Serious Medical Diagnosis? Four Financial Steps to TakeA serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
-
To Stay on Track for Retirement, Consider Doing ThisWriting down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
-
How to Make Changing Interest Rates Work for Your RetirementHigher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
-
Within Five Years of Retirement? Five Things to Do NowIf you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
-
The Home Stretch: Seven Essential Steps for Pre-RetireesThe decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
-
Three Options for Retirees With Concentrated Stock PositionsIf a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
-
Four Reasons It May Be Time to Shop for New InsuranceYou may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
