What is a "Fiduciary Focused" Financial Advisor and why do you need one?
Hiring a fiduciary-focused financial advisor can be extremely beneficial, but what is a fiduciary and what do they do?
Are you looking for a financial advisor to help you connect your money with what matters most? No doubt you’ve been searching the internet already and have come across a variety of different advisors that claim to help you in a multitude of ways. In your research, you may have come across the term fiduciary. Some financial advisors, like Michael R. Rose with LPL Financial, are fiduciary-focused, but what does that mean?
What is a Fiduciary?
The technical definition of a fiduciary is a person or organization that acts on behalf of another person or persons. They are duty-bound to put the clients’ interests first at all times, preserving faith and trust between the two parties.
The whole point of a fiduciary is that they always look out for the client's best interests and disclose any conflicts that may negatively affect the client. There are so many examples of fiduciaries throughout the world, such as a lawyer and their clients, or in a more relevant sense, a client and their financial advisor!
By utilizing a financial advisor with a fiduciary focus, the client gets financial help and advice from someone who is acting in the client’s best interests. This can have a profound impact on the decisions you and your financial advisor can make in collaboration and what they might have you do to preserve or grow your wealth.
Why is a Fiduciary Good for Clients?
In the above scenario, you are the client that’s working with a financial fiduciary. How can you benefit from a service like this, compared to working with financial advisors that aren’t fiduciaries or who do not have a fiduciary focus?
Effectively, the primary benefit is that your assets and best interests are always put first and considered. With a financial fiduciary, they are legally bound by regulations that prevent them from making decisions or doing anything with your money that can have potentially negative consequences. In essence, they must only do things that will be good for your assets and finances.
Naturally, this can prevent instances where a financial planner makes a big risk with your money based on a hunch. It will also stop situations where there are conflicts of interest that could put your money in a bad position. For example, a financial planner may encourage you to invest in certain things because they could have a stake in them. There’s no evidence to suggest that this would be a wise choice for your finances, but they push it because they could benefit from it. A fiduciary exists to stop this from happening, further preventing your money from being lost or wasted.
Another benefit of working with a financial fiduciary is that the Securities and Exchange Commission states that they cannot, under any circumstances, mislead a client. This means that they always have to be open and honest about every decision they make for their client's finances. It also means they have a duty to explain why they are making a decision and what you could gain from it. Again, this stops cases where a financial planner or advisor can make decisions without explaining them fully. It can also prevent situations where a client is misled to believe something is happening for one reason, only to find out it’s happening for another.
I act as in a fiduciary capacity with my advisory clients when providing investment advice.
If you are looking to enjoy the benefits of someone who follows a fiduciary standard, Michael Rose is an LPL financial planner with a fiduciary focus. This means that he will uphold all of the standards expected from a fiduciary.
With Michael, you’re working with someone who follows a fiduciary standard, so he will always put your best interests before anything else. You will get experienced, professional financial planning advice based on what is good for you and no one else. Each client is viewed as an individual, and any conflicts of interest will be disclosed.
Michael’s fiduciary focus also means that you get full details and breakdowns of every decision he will make for your assets. You will have access to your accounts online with 'account view' or with paper statements and you will also have access to Michael for questions or additional financial planning updates.
Set Up A Complimentary Consultation Today
Are you looking to pursue more financial independence? If you want advice that’s centered around what’s best for you, you should consider working with a fiduciary-focused financial advisor, like Michael Rose with LPL Financial. As a gesture of good faith, Michael is currently offering complimentary consultations for all new clients. To set up your complimentary consultation at your convenience, give Michael a call today. Feel free to ask any questions, so he can help you along your financial journey.