A fiduciary is a person or entity that is legally required to act in the best interests of another party. In the context of financial advising, a fiduciary is an advisor who is legally required to act in the best interests of their clients. They are expected to provide unbiased and objective advice, to disclose any conflicts of interest, and to act in the best interests of their clients, even if it is not in their own best interests.
The Benefits of Working with a Fiduciary Financial Advisor
First, they are legally obligated to act in the best interests of their clients. This means that they cannot recommend investments or strategies that would benefit them more than their clients. Additionally, the best fiduciary financial advisors are required to disclose any potential conflicts of interest, so clients can be sure that they are getting unbiased advice.
How to Find a Fiduciary Financial Advisor
The best way to find a fiduciary financial advisor is to do your research. When you find an advisor that is registered with FINRA, make sure to ask if they are a fiduciary. If they are, they should be able to provide you with a disclosure statement outlining their fiduciary responsibilities.
Conclusion
Finding a trustworthy financial advisor can be difficult, but it is an essential part of managing your finances. Working with a fiduciary financial advisor is a great way to ensure that you are getting unbiased advice that is tailored to your individual needs and goals.
