What you don’t know – but should – about how your advisor gets paid

When working with an advisor, ideally you will work with someone who follows the fiduciary standard.

That means that they are obligated to act with your best interest in mind.

But calling yourself a fiduciary does not necessarily make you one, Levine said.

In order to really be a fiduciary, your advisor has to want to act in your best interest, have the education to be able to identify what is right for you and work in an environment that allows him or her to follow through.

“You have to have the desire, the knowledge and the capacity,” Levine said. “Otherwise, you can say you’re a fiduciary, but you’re not really a fiduciary.”

Of note, infamous former investment advisor Bernie Madoff — who is serving a 150-year jail sentence for running a Ponzi scheme — was a fiduciary, but clearly did not act in his clients’ best interests.

The lesson: The title you call yourself doesn’t change the kind of person you are, Levine said.

Be sure to do a background check. The websites for the Securities and Exchange Commission and the Financial Industry Regulatory Authority can help.