Financial fiduciaries are professionals who are legally obligated to put their client’s best interests first. They must avoid conflicts of interest and disclose any potential conflicts before recommending a course of action. At the core, fiduciaries build trust with clients; they always put their client’s interests ahead of their own.
And while that may seem like a no-brainer for financial advisors, unfortunately, it’s not always the case. In fact, many so-called “financial professionals” aren’t held to the same legal standards as fiduciaries. So, if you’re working with someone who isn’t a fiduciary, how can you be sure they have your best interests at heart? Here’s what you need to know about fiduciary advisors – and how they can benefit you.
Define what a fiduciary advisor is
A fiduciary advisor or company like Homrich Berg is a trusted financial professional held to a higher standard of care than other advisors regarding offering advice. They are legally obligated to prioritize the client’s best interests above all else, including their own.
Fiduciary advisors look at a holistic approach when analyzing the entire situation to get the most suitable solution for each client. This practice ensures that all aspects of the client’s well-being are considered and strives to create relevant and long-term results.
Describe how a fiduciary advisor can benefit you
Working with a fiduciary advisor can be highly beneficial for all types of investors, from beginners just starting to more experienced investors. Fiduciary advisors are highly knowledgeable professionals who are held to strict standards of neutrality, objectivity, and transparency when providing their advice and services.
As such, they provide unbiased judgments while striving to ensure the best outcomes for their clients. Working with a fiduciary advisor gives you access to expert advice and services tailored specifically to your individual goals and financial needs. Their insight is invaluable in helping you navigate the ever-changing world of investing, build wealth over time, secure retirement income and make informed decisions about your fiscal health overall.
Additionally, as you collaborate on plans to reach long-term objectives or address current issues with your finances, they will provide caring guidance throughout the process.
List some of the duties of a fiduciary advisor
Fiduciary advisors are specialists in the field of financial management and planning. They provide clients with advice and guidance about investments, estate planning, retirement plans, insurance coverage, and much more. The primary duty of a fiduciary advisor is to act loyally on behalf of the client – to put the client’s interests first at all times. They will always strive to make decisions in the best interest of their clients without conflict of interest or undue influence from any other party.
Furthermore, a fiduciary advisor must provide full disclosure and transparency on all matters related to the investment accounts they advise on and manage. They are obligated to review existing portfolios versus recommended strategies to ensure clients receive proper advice and guidance tailored specifically to their personal needs. Having a fiduciary advisor as part of your financial team can greatly benefit you by providing trustworthy expert guidance at every step of your financial journey.
Give examples of when you should seek out the help of a fiduciary advisor
Fiduciary advisors can help in a range of situations. Most notably, when dealing with high-value investments, significant purchase decisions, or facing complex financial choices, a fiduciary advisor can provide invaluable assistance. Such advisors are most helpful in buying or selling stock portfolios or real estate investments, preparing for retirement, or handling the finances of an estate.
Additionally, seeking out the advice of a fiduciary advisor can be beneficial when considering annuities or insurance policies that come with complicated terms and conditions. Ultimately, these specialized financial professionals aim to ensure your interests take precedence over any other party when it comes to making significant monetary decisions.
Offer tips on finding a reputable and qualified fiduciary advisor in your area
Finding a reputable and qualified fiduciary advisor starts with researching the backgrounds of potential advisors who should be legally bound to act in your best interest. An excellent way to explore potential fiduciaries is to look at their designations, certifications, and credentials – such as Professional Financial Planner (PFP) or Chartered Financial Analyst (CFA).
You can also check their registration status through FINRA BrokerCheck. Past client reviews can provide another valuable resource for gauging an advisor’s success rate. Additionally, be sure to ask questions about their areas of expertise and strategies they’ve used in the past. Any advice they give you should help you meet your financial goals without putting too much risk on your end. Ultimately, you must find a qualified provider you trust enough to invest in for the long haul.
A fiduciary advisor is a professional legally bound to act in your best interest when giving financial advice. Fiduciary advisors can provide many benefits, such as helping you save for retirement, negotiating on your behalf with financial service providers, and protecting your assets. When choosing a fiduciary advisor, ask about their experience, qualifications, and fees. You can also check out these tips from the SEC for finding a qualified fiduciary advisor near you.
