Fiduciary
I received a lot of questions from last week’s post. The most popular question was, “What is a fiduciary?” I think the readers are really asking “What does a fiduciary mean for me?”
Mr. Webster tells us the following: “relating to or involving trust, such as the trust between a customer and a professional.” It comes from Latin fīdere, which means “to trust.” In case you are wondering, it is pronounced “fə-ˈdü-shē-ˌer-ē.”
To be specific, as a fiduciary financial planner I must do for you:
1. Put Your Interest First
As a fiduciary, that means that your interests are ahead of the firm’s interest, and my own interest at all times.
2. Avoid Conflicts of Interest
I seek to eliminate conflicts of interest and fully disclose any conflicts of interest to you and properly manage them.
3. Duty of Care and Impartial Advice
I act with the care, skill, prudence, and diligence that coincide with your goals, risk tolerance, objectives, and financial and personal circumstances.
4. Impartial Advice
I act with honesty, integrity, competence, and diligence. I exercise due care and good judgment in all client matters as a fiduciary.
5. Follow Client Instructions
I comply with all objectives, policies, restrictions, and other terms of the client engagement and all reasonable and lawful directions of the client.
What would you do if you went to a doctor who worked for Pfizer and wrote a prescription for a Pfizer drug? You would get a second opinion, wouldn’t you? So why do you buy funds from your broker’s company? Your broker isn’t a bad person. They work in a bad system. You deserve someone who has no other incentive besides to pick what they believe to be the best investment for you. I am a fiduciary 100% of the time and always act in the clients’ best interests.
If you’d like to chat, you can set up a free consultation.