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What’s the Difference Between a CPFA and a Financial Advisor? How Does it Make a Difference in Yo...


What’s the Difference Between a CPFA and a Financial Advisor? How Does it Make a Difference in Your Employee Retirement Plan?
What’s the Difference Between a CPFA and a Financial Advisor? How Does it Make a Difference in Your Employee Retirement Plan?


What’s the Difference Between a CPFA and a Financial Advisor? How Does it Make a Difference in Your Employee Retirement Plan?


When you hire a CPFA to consult on your employee retirement plan, you are not only hiring a financial advisor on behalf of your employee retirement plan but also an advisor for you as a fiduciary. The difference between your CPFA and a financial advisor is that your CPFA will actually act as a [certified] fiduciary on the plan.


That is what allows your CPFA to provide you with ERISA-type services. Additionally, a CPFA has a legal obligation as a fiduciary on your plan to provide advice in your best interest, unlike a typical financial advisor who earns their fees through commissions paid by a service provider for selling their specific products. When one of these commissioned advisors has an incentive for selling a product for your employee retirement plan that benefits them or your service provider as opposed to your employee retirement plan, they will default in favor of that option instead.


A CPFA, on the other hand, will instead ensure that your plan allocations are void of any underperforming mutual funds and that you only pay necessary fund expenses for your employee retirement plan (in compliance with a fiduciary’s legal duties). In return, a CPFA will only charge a flat rate versus commissions. This fee typically ranges between .2% to .5% of the assets in the employee retirement plan annually but will vary depending on your specific needs.


If you are a fiduciary for your company’s employee retirement plan and need an advisor who you can trust but don’t know who you can turn to who will provide advice in your best interest? I’ve got you covered. I specialize in evaluating employee retirement plans and adding 99% value to them. As a fiduciary on your employee retirement plan, I will ensure that you only pay necessary expenses and offer you the best advice for your plan needs. Contact me today if you’re ready to get the most value from your company’s retirement plan and work with an advisor who you can trust.

 

If you are a fiduciary for your company’s employee retirement plan and are concerned about your current investment options, I can help. My specialty is reviewing and adding 99% value to employee retirement plans. Contact me today if you’re ready to get the most value from your company’s retirement plan and protect yourself from personal liability as a fiduciary.


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