Growing up in a small town in Eastern Washington there were limited choices for such things as restaurants, clothes, movie theater and other entertainment. As consumers, we either had to settle for what was available locally or make trips of an hour or more to increase our options.
Another area with limited options was financial services. We had your typical banks and a couple of stockbrokers who focused on selling high commission products. This was in the 1990s before online brokers were available. I was familiar with how they worked because I was a client as a teenager. I used summer job money to invest in stocks and mutual funds and used the broker to make those purchases. There was no discussion around financial planning and they didn’t disclose conflicts including how they get paid and receiving trips for selling one product over another.
Later in life, after receiving a finance degree and starting my career as a financial advisor I learned about fee-only fiduciary financial advisors. At the time, I was working for a big Wall Street firm and saw how they emphasized gathering assets and selling products above all else. Financial planning and putting the client first fell down the list of priorities.
In September 2008, just before the top blew off the Great Recession, I became an independent, fee-only fiduciary financial advisor. The purpose for starting the business was to provide financial planning advice that was in the best interest of my clients. Compensation and any conflicts would be fully disclosed in clear English upfront.
A few years later, we planned to move our family to Crossville, Tennessee. In my research leading up to the move I found Crossville had a bunch of stockbrokers selling products but there were no Certified Financial Planners working in the client’s best interest at all times. This was going to be a great opportunity to provide the people of Crossville, Cumberland County and to help people make better financial decisions through a fiduciary financial planning process.
Peterson Wealth Advisory (PWA) is an independently owned Registered Investment Advisor (RIA) firm in Crossville, TN. I am the owner, a Certified Financial Planner™ and a member of the National Association of Personal Financial Advisors (NAPFA). PWA is the only member of NAPFA in the triangle between Knoxville, Nashville and Chattanooga.
There are significant differences between my firm and non-fiduciary advisors. Peterson Wealth Advisory is paid directly by our clients on a fee-only basis, we disclose all conflicts of interest and have a duty to put our client's interests first.
Dual registered advisors/brokers say they are fee-based. This means they can be paid a fee by the client for advice but at the same time they can sell a product that earns them a commission. They are not duty bound to provide advice in the client’s best interest. In practical terms they may sell a product that earns them a higher commission but that may just be “suitable” for your situation. Do you want a doctor prescribing you the best medicine for your illness or a doctor that considers the kickback they will receive from the pharmaceutical company?
We don’t receive kickbacks or revenue from mutual funds for selling their products. We don’t vacation to far off destinations because we sold a bunch of annuities or specific mutual funds. Conflicts can arise when fund A pays more to the advisor but fund B costs less and performed similarly. A fiduciary advisor has a duty to pick fund B.
At Peterson Wealth Advisory we don’t sell insurance products like complex annuities with huge commissions and long lock up periods. We will review your insurance policies and link you up with an agent we have worked with and trust to help our clients find appropriate and cost-effective policies.
When I work with clients, I take the time to get to know them personally, learn about their life experiences, and understand the quality of life they are striving towards. Until we know the answers to these impactful questions, we can’t possibly make financial planning recommendations.
For those looking for a financial advisor in Crossville who will put your best interest’s first contact me, Christopher Peterson, CFP®, for an introductory meeting.