Why a Fiduciary Advisor
The US Securities and Exchange Commission (SEC) requires advisors to hold themselves to a fiduciary standard which means that the best interests of the client come first; the client’s interests must come before the advisor’s interests and any possible conflicts of interest must be disclosed by the advisor. The fiduciary standard is the highest standard of care in the financial services business.
A broker is defined as “any person engaged in the business of effecting transactions in securities for the account of others”. Brokers are paid through commissions tied to the investments they select for the client. Sometimes these expenses are not seen by the client as can be the case with mutual funds which have a revenue sharing arrangement and is the case with many insurance products (annuities, life insurance, etc.).
A fiduciary advisor is paid to provide you with objective advice that is solely in your best interest; a broker is paid to sell you products which may, or may not, be in your best interest.