What one thing can help you accomplish your goals in life—retirement to enjoy the wealth you’ve worked hard for, a nice home to raise your family in and the ability to help your children pay for college and achieve their dreams? Money. It only makes sense that you would want to trust the right people with your money, as their actions could affect whether your wealth grows or dissipates. But how do you know that you’re trusting the right person with your money? One of the key distinguishers is whether they are a fiduciary or a salesperson.
What Are the Differences Between a Salesperson and a Fiduciary?
While many types of financial advisors exist, they are not all alike. Whether or not the person handling your money has the obligation to act as a fiduciary is key. What does it mean to act as a fiduciary? In short, it means that the interests of the client take top priority. The products that have the best returns, the packages with the highest commission and the interests of the advisor and their firm all take a backseat when it comes to what is in the best interest of the individual client.
When a financial advisor or broker has to act as a fiduciary, it means that they need to follow all of the standards in the 1940 Investment Advisers Act. They are required to:
- Give clients their undivided loyalty
- Act in good faith
- Avoid engaging in activities that are a conflict of interest, or, disclose any potential conflict the moment it arises
- Providing a full disclosure of any advice that they offer
Who Are You Working With?
Are you unsure of who you are working with? Ask! If they say that they are not a fiduciary, you might want to reconsider who you are trusting with your money. Professionals who are not fiduciaries do not need to:
- Disclose the reasons they are making the recommendations that they are
- Tell you if they are being told to sell certain products
- Alert you of whether or not they are limited to only products that their parent company offers
- Tell you if there is a conflict of interest
If you want to feel good knowing that your money is in the hands of someone who must have your best interests at heart every day, a fiduciary is your best option.
Invest Wisely and Retire Well
Retirement Consultants is dedicated to providing every client with comprehensive wealth management services for a simple, fully transparent fee. From financial planning to investment management, it’s our mission to help you achieve every one of your goals in life. To learn more about our services and get started today, call us at (520) 615-6005 or visit us online by clicking here.