Did you know that one-third of Americans have no savings for retirement? And 50 percent of those that do have less than $10,000 in their account. Hiring a financial advisor might be just what you need to make sure you have a savings when you need one.
If you are wondering about financial planning, set your mind at ease by learning exactly what is a fiduciary financial adviser and how they can help you.
What Does Fiduciary Mean?
Fiduciary is the term used when describing a person or organization that acts in the best interest of another party. They even put the interest of the other party before their own.
Fiduciaries are common in situations where high levels of trust are necessary.
For example board members of a company or non-profit may be fiduciaries. Or trustees may have a fiduciary relationship with their beneficiaries.
What Is a Financial Advisor?
A financial advisor is a professional that provides services to clients based on their financial situations. Their goal is to help manage financial decisions to increase wealth.
There are many different types and there are varying certifications and licenses they can hold. Many of them are not regulated.
Two of the only position titles that are regulated are investment advisor and broker-dealer. So you should always check for verification before hiring someone with a title like wealth advisor.
If you hire a financial advisor that isn’t a fiduciary they may recommend products and investments that will make them extra money in commissions.
So What Is a Fiduciary Financial Advisor?
A fiduciary financial adviser is one that only makes investment decisions that are in line with your best interests. They won’t recommend products just to cash out extra commissions.
Instead, they find you the best prices and terms for the opportunities that are best for you. When doing important things like investing after retirement you want to know your advisor is treating your money right.
They are transparent with any information relevant to your investments. They tell you about any conflicts of interest that may arise. And they do their best to make sure their advice is accurate.
Benefits of a Fiduciary Financial Advisor
Using a fiduciary financial adviser allows you to stress less knowing you are working with someone who has your financial best interests at heart.
They won’t recommend products that can cost you extra money you don’t really need to spend. And they won’t use your assets to buy themselves securities before purchasing them for your account.
Choose Your Own Fiduciary Financial Advisor
Now that you have the answer to what is a fiduciary financial advisor you can find one to help you reach your financial goals. Contact some professionals and choose the one that is right for you.
Don’t forget to read some more of our blog posts that will keep you up to date on trends that affect your life.