Fiduciary vs Non-Fiduciary
Is there any benefit on using a financial advisor that is a fiduciary? Is it important for your advisor to be a fiduciary? Is there a site that would list whether he is or where I could research fiduciaries in my area? Thank you
Terry Says
The word “fiduciary” has come to mean many things — and there is no strict definition. In fact, the SEC is struggling with that issue right now. The dictionary definition is “the responsibility to put others’ best interests ahead of your own.” It’s a pledge that an advisor should be willing to put in writing: that your best interests come first.
You can learn more about this concept at the Fiduciary Institute: https://thefiduciaryinstitute.org/
As to your question, I think it’s pretty obvious that if you want to trust someone’s advice, that person should not be motivated by commissions, hidden fees, ongoing income from the investment he or she is recommending.
That’s why I have a link on my website to Wealthramp.com, where you will be matched with a FEE-ONLY FIDUCIARY advisor.
Yes, many non-fiduciary advisors (typically brokers, but also others calling themselves financial advisors) have a great moral code and care for their customers’ best interests. But how would you know you are hooked up with one of them — unless you choose a FIDUCIARY who will put that in writing!!
