What is a Financial Advisor?
A financial advisor is a specialist who provides advice and counsel to customers on financial topics. These topics include investing, retirement planning, tax planning, insurance, and estate planning. A financial advisor’s main objective is to assist clients in achieving their financial goals and objectives. They will develop a personalized financial plan that considers each client’s particular financial situation, risk tolerance, and investment objectives.
What is a Fiduciary?
A financial advisor, investment manager, or trustee legally required to work in their customers’ best interests is known as a fiduciary in the industry. Fiduciary financial advisors are obligated to provide advice that is in the best interest of their clients. They are barred from engaging in any action that may cause a conflict of interest, such as getting compensation for selling specific financial products. The fiduciary obligation is a crucial notion in the financial sector. This is because it assures that professionals always behave with integrity and put their client’s interests first. This shields clients from possible conflicts of interest and unethical behavior.
We Put Our Clients First
A fiduciary advisor has a moral and legal duty to work in their client’s best interests. This means that they must prioritize their client’s interests above their own and avoid any conflicts of interest that could undermine their client’s financial well-being.
Fiduciary advisors are required to offer guidance that is both appropriate and, in their clients’, best interests. They must disclose any conflicts of interest they may have and explain how they will manage these conflicts. For instance, if a fiduciary advisor receives commissions for pushing financial products, they must tell their clients about it and explain how it might affect the advice they give.
By engaging with a fiduciary advisor, customers can have greater confidence that their advisor is working in their best interest and is not swayed by other forces that could undermine their financial well-being.