Why Your Advisor Should Be A Fiduciary

In general terms, a fiduciary is a person or entity who has the power to act for another in situations that require complete trust. When it comes to the financial industry, investment advisers are held to this duty in the investment advice they provide their clients. By law, a fiduciary advisor must be completely transparent and always act in their client’s best interest. This means they are obligated to avoid conflicts of interest and cannot use a client’s assets for their personal benefit without client consent. However, if a conflict of interest does occur, they are required to disclose it to their clients.

Additionally, the ongoing services and investment monitoring they provide also falls under the fiduciary duty. In other words, their job doesn’t end after the initial meeting or purchase. They must regularly review your accounts to help ensure your investments are in your best interest.

There are financial professionals whose services do not fall under the fiduciary standard. This doesn’t mean that they are out to steal your money and can never be trusted—far from it. These financial professionals are held to the suitability standard. This means that the products and services that are being offered are suitable to the client based on the needs and objectives of the client.

There are several benefits to working with an advisor who serves in a fiduciary capacity. For one, they are open and transparent. Aside from the obvious goal of maximizing value for your money, working with a fiduciary can give you confidence that your advisor is working with your best interests in mind rather than their own.

By working with an advisor who is bound to the fiduciary standard, you can feel empowered that the investment advice you receive for yourself and your finances is in your best interest. Clients have the power to ask questions and to seek a higher value for the service that advisors are providing. As a firm in the financial world, we understand people’s reservations or even negative connotations toward the underlying motivations of some advisors. We strive to provide a relationship with you that is built on integrity.