Fiduciary
Your financial best friend who legally must put your interests first. Period. No ifs, ands, or buts.
A regular salesperson, more often than not, recommends what benefits them most, while a fiduciary advisor must recommend what’s best for you. Think of a doctor prescribing the right medicine, not the most expensive.
What/who requires an advisor to be a fiduciary?
- Registered Investment Advisors (RIAs) – Advisors registered with the SEC (Securities and Exchange Commission) or state regulators must follow the fiduciary standard under the Investment Advisers Act of 1940.
- Fee-Only Compensation – Advisors who are fee-only (not earning commissions) are more likely to be fiduciaries since they don’t have conflicts of interest from product sales.
- Certified Financial Planner™ (CFP®) professionals must follow a fiduciary standard when providing financial advice, per the CFP Board’s Code of Ethics.
Fee-Only
A fee-only financial advisor is a professional who is paid directly by you, just like you’d pay for a lawyer or an accountant. No hidden fees, no sneaky commissions - just straightforward pricing.
This allows advice to be unbiased and focused on what’s best for you, not on what makes the most money. Fee-only advisors often work for a flat fee, hourly rate, or a percentage of the assets they manage for you.
Advice should be bought, not sold!
If you want an advisor who always puts your interests first, look for one who is fee-only and legally required to act as a fiduciary.