What is a CFP®?
A Certified Financial Planner (CFP®) designation is a professional certification for financial planners. The CFP® candidate must meet rigorous examinations, experience and ethics requirements as well as ongoing education. A CFP® professional is held to a fiduciary standard of care to act in your best interest.
What is a Registered Investment Advisor (RIA)?
A Registered Investment Advisor is regulated by either the state or SEC. The RIA is usually the firm (in this case, K-Mack Financial, LLC) and the Investment Advisor Representative (IAR) is the employer or principal (in this case, Kevin McKenney, Principal).
An RIA has a legal obligation to act in your best interest at all times. The advice given by an RIA has be both suitable and in your best interest.
A non-fiduciary advisor working as a stockbroker or as an advisor for a large bank is not held to the same high standard. This individual only has to recommend an investment that is suitable which may or may not be in your best interest.
What is a Fee-Only Financial Advisor?
Fee-only advisors are paid only by you and as such have no inherent conflict of interest. They don’t accept fees or compensation based on compensation based on product sales.
However, Fee-Based advisors may charge both fees to you as well as receive commissions, incentive fees, rebates marketing fees, 12b-1 fees, awards or any number of other sources of compensation that may influence their investment choices.
What does this difference mean to you? First, many of the fees paid to the Fee-Based advisor are not that readily disclosed to you to allow you to make informed decisions. Second, these additional fees paid to the advisor, and these fees can be significant, can only reduce your return. However, the most important issue is that these hidden fees paid to the advisor could influence which investment choice they chose to recommend to you. This conflict of interest can lead to a loss of objectivity on the part of the advisor.
What is an Enrolled Agent (EA)?
An Enrolled agent is a federally authorized tax practitioner who has demonstrated to the iRS to have expertise in the field of taxation. The Enrolled agent status is the highest credential awarded by the IRS. Enrolled Agents, CPAs and attorneys can represent taxpayers before the IRS.
K-Mack Financial. LLC and/or Kevin McKenney is a CFP, RIA, EA, Fee-Only Financial Advisor