Fiduciary

You’ll probably be surprised to know that many financial advisors are not held to a fiduciary standard when providing you advice. What does this mean? Simply put it means someone who holds themselves to the standard of acting in YOUR best interest at all times. 

Lawyers, Doctors, CPAs are all held to this standard. But not many financial advisors.

This can come as a shock to some people, others are more jaded. Either way, you’re probably asking yourself “Why not?”

That’s a good question! Much of the reason comes from how the financial industry began. From its earliest days the financial services industry has been pushing products (some simple, some complex, some good, some not so good). In 2015 the Obama administrations Council of Economic Advisors released a report showing that conflicted financial advice cost consumers $17 billion in retirement savings each year. From this report the Justice Department proposed a rule requiring that all financial advisors act in the best interests of their clients. However, this requirement has been stalled in the courts due to the power of politics and Wall Street. Almost a year ago to the day the rule was dealt another blow when the courts ruled the Labor Department had overstepped its authority. So today – still no fiduciary rule.

Though the rule is held up in the courts the good news is that investors are more alert to the conflicts that can come with working in the financial industry. Most of the industries advisors are not obliged to act in your best interest AT ALL TIMES.When it comes to a retirement account – maybe they do, but when it comes to selling you something like an annuity they may decide to recommend something that pays them too. 

Wearing two hats at one time is never a good look.

The Financial Services Industry continues to change. From its beginning with Stock Brokers to Mutual and Life Insurance Sales People and now hopefully it is moving towards providing unbiased advice like other professions.

Because of this changing shift many Fee Only advisors are in high demand and have long wait lists.  

Finding a Fiduciary Planner

With the stalling of the fiduciary requirement a number of websites and networks are emerging to help investors connect with Fiduciary Advisors.

You can search for Fiduciary Advisors on the following sites – each require Advisors to be fiduciary in order to be listed.

Fee Only Network, NAPFA, XY Planning Network, Garrett Planning Network, 

If you are not sure if your financial advisor is committed to act in your best interest feel free to schedule an introductory call and we can find out!