Financial Advisor Fundamentals

01Fiduciary vs. Suitability Standard

A fiduciary must act in the client's best interest and disclose conflicts of interest. The suitability standard only requires a recommendation to be appropriate for the client's profile — not necessarily the best or lowest-cost option available.

02Roth vs. Traditional IRA & 2026 Contribution Limit

Traditional IRA contributions are typically pre-tax or deductible with tax-deferred growth and taxable withdrawals; Roth IRA contributions are after-tax with tax-free qualified withdrawals. For 2026 the combined contribution limit across all Traditional and Roth IRAs is $7,500 (under 50), or $8,600 with the $1,100 catch-up for those 50+.

03401(k) Match Basics

Employers often match a percentage of employee contributions up to a cap (e.g., 50% of the first 6% of pay). Contributing below the match threshold leaves free, guaranteed employer money unclaimed.

04Compound Interest & the Rule of 72

Compound interest means returns are earned on both the principal and previously earned returns. The Rule of 72 (72 divided by the annual return rate) gives a quick mental estimate of how many years it takes an investment to double.

05FINRA Licenses: Series 7 & Series 66

The Series 7 license qualifies a registered representative to sell a broad range of securities (stocks, bonds, mutual funds, options). The Series 66 combines state securities law and investment adviser law requirements, enabling registration as an investment adviser representative — it's paired with, not a replacement for, the Series 7.

06Diversification

Spreading investments across different assets, sectors, or companies reduces the impact any single investment's poor performance has on the overall portfolio.