Saving for retirement can be one of the most significant investments that you will make in your lifetime.  You are putting your hard-earned dollars into a variety of savings vehicles, like 401(k) plans or Roth IRA’s, with the hope that your funds will continue to grow.  Many investors choose to hire a financial advisor to assist them with this process—anything from financial education and setting up an account to analyzing results and rebalancing portfolios.  However, a common misconception is that all advisors are alike; so, before you decide to move forward with an advisor, you will want to ensure that he or she is a fiduciary.
A fiduciary is a person who will only act in the best interest of their client (fiduciary beneficiary).  He or she is held to a higher standard and will provide high quality care. In addition, a fiduciary will disclose any conflicts of interest and will be transparent in all communication.  This fiduciary responsibility applies to the entirety of your relationship—whether it is one day or fifty years. As the beneficiary, you are trusting your advisor to act on your behalf, so it is crucial that you have a relationship built on this foundation.  You can have confidence that any recommendations made or advice given will be based only on your particular situation. 
While all financial advisors may be knowledgeable about retirement accounts, differentiating between a fiduciary and non-fiduciary advisor could be the difference in how your portfolio performs.  Non-fiduciary advisors are not necessarily required to make recommendations based on your best interest.  Instead, their advice is only required to be suitable for your financial situation, meaning that it may not necessarily be the best option for you (i.e. could be more expensive).  Though many employees trust that their company plan providers are offering good advice, surveys report that many are still concerned about their portfolios. According to Market Watch, one survey of 1,425 adults aged 25 and over with money in a 401(k) or 403(b) plan completed by AARP stated: “Seventy-eight percent of savers said they are “very concerned” or “somewhat concerned” that the advice they get through their workplace plan isn’t always required to be in their best interest.”[1] Because of conflicted investment advice, those saving for retirement lose an estimated $17 billion each year.[2] To avoid these losses, it is crucial that Americans continue to educate themselves about fiduciary duty so they are prepared to make more diligent decisions regarding their finances.  
The first step in finding the right financial advisor is to determine what you need from the relationship.  If, for example, you are comfortable making your own investment decisions and only need help placing trades, it may not matter whether the advisor you choose is a fiduciary. However, if you are looking for someone to guide you through the retirement savings/investment process and make recommendations, finding a fiduciary will be more important. When you are interviewing potential advisors, ask if they follow the fiduciary standard.  If they do, they should be able to answer with a simple, “Yes.”  In addition, if an advisor offers his or her services to you for free, this could be a red flag that there may be hidden fees. Ultimately, the advisor you choose should be someone who you feel is the best match for your needs.  In addition to references provided by family and friends, Howard Capital Management, Inc. (HCM) can put you in touch with a trusted advisor in your area.  
Thanks to technological advancements, HCM has taken fiduciary responsibility to the next level by helping investors to become more informed and make investment decisions with more confidence. Online investment tools, such as HCM’s 401(k) Optimizer®, can offer personalized investment advice based on a computerized analysis of an individual’s retirement plan.  Using your risk tolerance and long-term goals, the system can recommend:
  • Which specific funds to choose in the employer’s plan.
  • How much to invest in each fund.
  • When to rebalance the account.
  • What to do with your investments when the markets rise or fall.
Together with your financial advisor, these tools can help you customize your portfolio as you work to optimize your investments and achieve a more secure financial future.  These recommendations will always be made with your best interest in mind.   Contact Howard Capital Management, Inc. At Howard Capital Management, Inc. (HCM), we understand how important it is to work with someone you trust, that can create and deliver tools and technology to help you navigate the market with ease.  By planning for your financial future now, you can make your retirement an exciting and smooth transition. [1] [2]


This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and may transact in them as principal or agent. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. Our proprietary indicator, the HCM-BuyLine®, identified changes in the market trend. Buys and sells may or may not have occurred on the exact dates shown. These dates do not necessarily reflect transactions applied to every individual account. Also, certain products, custodians and portfolios may have a delay in execution. When the HCM-BuyLine® indicates a bull market, HCM then identifies the particular mutual funds, ETFs or individual stocks that we believe have the best return potentials in the current market from the universe of assets available in each given program and invests in them. When the HCM-BuyLine® indicates a bear market, HCM moves clients’ investments to less risky alternatives. Not every HCM-BuyLine® buy and sell will result in a profitable trade. There will be times when following the indicator results in a loss. However, there have been situations in the past in which HCM reduced clients’ exposure to equities during market downturns by following an HCM-BuyLine® signal, thereby preserving capital. Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Howard Capital Management), made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be equal to past performance level or that it will match or outperform any particular benchmark.  Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Howard.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from the use of this communication. A copy of Howard’s current written disclosure statement discussing our advisory services and fees are available on our website LASS.102820 HCM.102820.50