A fiduciary is a person or organization acting on behalf of another person or persons. A fiduciary will put their clients’ interests ahead of their own. In fact, they have a legal and moral obligation to do so. A fiduciary financial advisor is beholden to their client. Other fiduciary relationships include attorney and client, or trustee and beneficiary. 

Another important term you may have heard is “fiduciary responsibility.” This refers to the obligation that the fiduciary has towards their client, meaning they act entirely on the client’s behalf and in the client’s best interests. As financial advisors, we act as an investment fiduciary. This means we’re legally responsible for managing clients’ assets in a way that is most beneficial to them.

Not all financial advisors are fiduciaries. These advisors are not held to the same standard as a fiduciary, and may prioritize proprietary products or investment options that maximize their own fees. A fiduciary, by comparison, must act on your behalf and do so in good faith. This means they cannot put their own interests above yours. A fiduciary may even face legal and financial penalties for failing to act in your best interest. 

Here are some things a fiduciary financial advisor can help you with:

• Analyzing your financial situation
• Discussing your financial objectives and identifying ways to reach your goals
• Creating investment and retirement accounts on your behalf
• Buying and selling assets on your behalf
• Creating a plan to manage long-term expenses
• Providing financial advice
• Assisting with estate planning
• Calculating your insurance needs

A fiduciary financial advisor will review your financial situation and discuss your long-term goals. Together, we create a solution tailored to you and your family. We want to see you reach your dreams, whether they include retiring early, traveling the world, or accumulating a certain dollar amount of assets in your portfolio.

You may have come across fiduciary services without fully understanding what they are. For specific questions about your situation, please contact us directly. Here are some of the frequently asked questions to aid in your general understanding.

What Is a Fiduciary Service?
A fiduciary service acts on behalf of another person or group of people. Most often, it is a financial obligation, where the fiduciary makes decisions regarding monetary assets. The financial advisor acts as a fiduciary for their clients, but fiduciary services can also refer to other relationships, including attorney-client relationships.

What Does a Professional Fiduciary Do?
A professional fiduciary manages the affairs of their clients. Usually, this involves financial matters. The fiduciary has to act in their clients’ best interest. In fact, they may face legal and financial penalties if they don’t put their clients’ interests first and make decisions that are not in good faith.

Who Is Considered a Fiduciary?
A fiduciary can be any person who is acting on behalf of another person. In the financial world, the fiduciary is the person who controls the assets and manages them. The assets still belong to the client, but the fiduciary acts in the client’s best interests to safeguard and grow the wealth.

Can You Lose Money with a Fiduciary?
There’s always a risk involved with wealth management. The fiduciary is required to act in good faith and in the clients’ best interests, but that doesn’t mean the fiduciary is infallible. Generally, a fiduciary has a higher standard of care than another type of money manager.
When to Work with a Fiduciary Financial Advisor
Fiduciary financial advisors can help you manage and protect your wealth. Given their duty to act in your best interests, a fiduciary gives you an expert who is solely on your side. There are many reasons to retain fiduciary financial services. For example, you may want to set up a trust for your family or yourself for tax or other reasons. Here, the fiduciary would be the person administering the trust, where you would be the beneficiary.