Good Financial Reads: Defining "Fiduciary" & Why it Matters

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Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.

Catch up on the latest posts with this week's roundup:

 

Is your Financial Planner a Fiduciary?

by Ben WacekWacek Financial Planning, LLC

 

The word ‘fiduciary’ is unfamiliar to most. In simplest terms, a fiduciary is someone who works on behalf of a client with their best interests in mind. The reason it hasn’t had much mainstream attention is because, to date, financial planners have not been required to operate as fiduciaries. But that is all about to change. A new standard was recently approved by the Department of Labor (DOL) requiring all financial planners to act as fiduciaries when advising on retirement accounts. It’s important that each household understands how this important change impacts them, and how to know they have an advisor who can serve them well now and in the future.

[Read the Full Article]

 

3 Types Of Fiduciary Financial Advisors – And Why It Matters

by Steven Fox, Next Gen Financial Planning

 

Even though the Department of Labor’s new fiduciary rule for financial advisors has not yet been implemented, it has already been effective in increasing consumer awareness of and interest in the concept of fiduciary duty. In general, the term “fiduciary” simply means somebody who has a legal and/or ethical obligation to put the interests of another in front of their own interests.

Some common examples of fiduciary duty include the duties of attorneys to their clients, corporate board members to their shareholders, the trustee of an estate to the beneficiaries, or court-appointed guardians to minor children. Many people would presume that financial advisors also have a fiduciary duty to their clients, but that is not necessarily the case! In fact, the far majority of financial advisors do not currently have a legal responsibility to put their clients’ best interests before their own. Most financial advisors are subject to a lower standard called “suitability”, and there are others who are only required to act as a fiduciary for certain aspects of their relationship with clients.

[Read the Full Article]

 

The F Word

by Krista CavalieriEvolve Capital

 

Krista shares a 2-minute vlog explaining an important F-word: fiduciary.

[Watch the video]

 

Why Fee-Only Financial Advisors Are Different

by Jenna VanLeeuwen, Guest Contributor

 

When you’re looking for a financial advisor, it can be confusing to figure exactly what kind of professional is the right fit for you. You’ve worked hard to earn your money -- and you don’t want choosing the wrong person to cost you.

One way to ensure that you’re working with someone who has your best interest at heart is to work with a fee-only financial advisor. But before we tell you exactly why we think it’s so important to work with a fee-only financial planner, let’s go over the three ways financial advisors are paid for their work.

[Read the Full Article]

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