Fiduciary vs. Suitability

Understanding the difference between a fiduciary standard and a suitability standard could pay major dividends in a relationship with a financial professional.

This is because financial planners operating under the fiduciary standard are required to put the client’s interest ahead of his or her own. One of the biggest goals of fiduciary financial planners is to consider a client’s specific circumstances before giving advice.  Fiduciaries take time to listen first, before providing advice that’s not catered to your situation.

In other words, don’t be timid about asking your financial advisor the motivation behind his or her recommendations.

Is Your Financial Advisor a Fiduciary?

The FPA, in a combined effort with NAPFA and the CFP Board, is making a big push to have the fiduciary standard applied to securities brokers, that give investment advice as well.  In her latest article, Liz Pulliam Weston does a nice job breaking down the differences between these two words and lists some questions you might like to ask your advisor.

Can You Trust Your Financial Advisor?

Placing our client’s interest first is at the core of our business. By caring about the client first, we can assure our advice is aligned with their specific hopes and dreams.

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