What is a fiduciary?
The term “fiduciary” is a good thing to hear if you’re searching for a financial advisor.
As a fiduciary, the independent advisor has a legal responsibility to act solely on the financial interests of their clients.
Why it is so Important
Choosing a fiduciary financial advisor can give you greater peace of mind. With an independent fiduciary financial advisor, you’ll know that the person managing your money must make decisions in your best interest, making a fiduciary’s advice more trustworthy.
In general, fiduciary financial advisors tend to have fewer conflicts of interest, and they’re required to disclose any potential conflicts of interest that they do have.
Financial professionals who earn commissions may be incentivized to sell their own products even if there are comparable products available at a lower cost. Fiduciaries must seek the best prices and terms for their clients. Thus, if you work with a fiduciary you’re more likely to end up with advice that’s truly right for you.