What Is An Advisor?

When choosing your financial advisor looking for one that offers a fiduciary standard can give you greater peace of mind. In general, financial professionals bound by fiduciary duty tend to be more transparent. Fiduciaries must thoroughly discuss their decisions with their clients, providing all relevant information and pertinent facts. This makes it easier to ensure you understand the decisions that are being made in regards to your assets and financial future.

While not all non-fiduciaries are necessarily bad advisors, it’s easier to ensure that you’re working with someone who has your best interest if you opt to work with a fiduciary. By definition, a fiduciary is an individual who is ethically bound to act in another person’s best interest. This obligation eliminates conflict of interest concerns and makes a fiduciary’s advice more trustworthy.

Fiduciaries must:

• Put their clients’ best interests before their own, seeking the best prices and terms.

• Act in good faith and provide all relevant facts to clients.

• Avoid conflicts of interest and disclose any potential conflicts of interest to clients.

• Do their best to ensure the advice they provide is accurate and thorough.

• Avoid using a client’s assets to benefit themselves, such as by purchasing securities for their own account before buying them for a client.

When you’re working with your financial professional it’s key to find out if they abide by fiduciary duty. Ultimately, when it comes to choosing someone to manage your money, you should find someone you can trust.

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