What Is a Fiduciary?

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Working with a fiduciary could be a smart move, especially if you’re trying to make smart financial decisions and maximize your savings and investment potential. When you are working with a fiduciary, you can take comfort in knowing you have a relationship with a firm that has your best interest in mind. Whether you are preparing for retirement or making real estate investments, saving for the future is a necessity.

Reasons One May Be Needed

People all over the world manage their money on their own, but are they really getting the most bang for their buck? Having a financial planner on your side is a smart move. Proper wealth management is a full-time job, and a fiduciary always keeps your best interest in mind. Some of the benefits of working with one include:

  • Increasing savings potential
  • Adjusting your plans according to major events in your life
  • Make investments on your behalf
  • No conflicts of interest

Fiduciary: What Do They Do?

Fiduciaries generally take on tasks that involve finances, whether for an individual or a group of people. Bankers, money managers, financial advisors, accountants, corporate officers, insurance agents, board members, and executors each have fiduciary responsibility.

These people are legally bound to keep their client’s best interests at the forefront, ensuring their clients are the ones benefiting from their advice and guidance. These duties appear in several business relationships, from corporate board members and shareholders to trustees and a beneficiary. While broker-dealers have a less-stringent suitability standard that they have to meet, registered investment advisors have to meet fiduciary standards, meaning they have to put their client’s best interests ahead of their own.

When you’re working with a fiduciary, you can take comfort in knowing that they are working on helping you meet your financial goals rather than looking to make a ton of money off of your investments. They will give you feedback and communicate with you, helping you make adjustments to your plans in order to help you reach your goals.

How to Tell You’re Working With a Fiduciary

The term fiduciary is often thrown around loosely, which can be manipulative and misleading. Those that are trying to come across as a fiduciary often refer to the relationship as a fiduciary-type relationship. There are a few ways you can tell if they are, so be sure to ask them some questions so you can be sure of who you’re working with.

The first thing you should inquire about is whether or not they are working with an RIA (registered investment advisor) or a registered investment firm. This ensures that they are following the rules set by the state or regulating department, avoiding any “fiduciary-type relationship” situations.

In order to be considered a real fiduciary, they have to be under the umbrella of a state or federal RIA. Beneath the RIA is an IAR (investment advisor representative). Knowing who they report to can let you know whether or not they are held to the fiduciary standard by law.

When all else fails, you can always ask the question “Are you a fiduciary?” The way they respond will tell you everything you need to know. The answer should be clear, either they are, or they are not. If they are not, definitely reconsider trusting them with your financial future.

Working With Prevail Innovative Wealth Investment Advisors

When it comes to handling your investments, savings, and other important aspects of your financial life, working with professionals is the smart move. At Prevail Innovative Wealth Investment Advisors, you can take comfort in knowing that your finances are in good hands. Reach out today if you are ready for a fiduciary to help with your financial future.

Kerry Lawing

CEO

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