What is a Fiduciary?

It's one of the most important questions you can ask about your financial advisor.

A fiduciary is someone who is legally and ethically required to act in your best interest. 

When a fiduciary gives you financial advice, your interests come before theirs, including how they get paid. It sounds like something every financial professional should do. But not every person who calls themselves a “financial advisor” is held to this standard.

What the Fiduciary Duty Means

A Duty of Loyalty

A Duty of Loyalty

A Duty of Loyalty

Your interests come first. A fiduciary must avoid conflicts of interest or clearly disclose them, and must never put their own interests ahead of yours.

A Duty of Care

A Duty of Loyalty

A Duty of Loyalty

 Advice must be based on a real understanding of your situation, goals, and risk tolerance. That includes looking for reasonable costs and monitoring your plan over time.

Not Every Advisor is a Fiduciary

Fiduciary Advisor

Standard: Must act in your best interest and put your interests ahead of their own

How they are paid: Typically a transparent advisory fee paid by you

Conflicts of interest:  Must avoid them or fully disclose them

Relationship: Ongoing advice and monitoring of your plan

In writing:  our fiduciary duty is affirmed in writing and in our contracts with clients

Broker or Insurance Agent

Standard: Generally follows Regulation Best Interest or suitability rules, depending on the product

How they are paid: Often commissions paid by the company whose product is sold

Conflicts of interest: Must disclose certain conflicts, and may be paid more for some products than others

Relationship: Often tied to individual transactions or product sales

Questions to Ask Any Advisor

Whether you work with me or someone else, these questions can help you understand who you're working with:

  1. Are you a fiduciary, and does that apply to all of the advice you give me?
  2. How are you paid, and do you receive commissions on anything you recommend?
  3. What will I pay in total, including fund and product costs?
  4. What conflicts of interest do you have?
  5. Can I see your Form CRS?

A good advisor will answer all of these clearly and without hesitation.

My Commitment to You

“I do what I do to help you know what you don’t know... financially.”

When I provide investment advice, I act as a fiduciary. That means I'll explain your options in plain language, tell you what you're paying and why, and make recommendations based on what's right for you. If there's ever a conflict of interest, you'll hear about it from me.

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