Aug 22 2017 37430 1

Dated: 08/22/2017

Views: 55

This information is brought to you by

Henry Sanz

Team H&L Miami at Real Estate Empire

Personal Finance 101: What is a Fiduciary?




Those looking into hiring a finance advisor may have heard the term “fiduciary” thrown around. But what is a fiduciary, and do you need one?
"Consumers are hearing the term 'fiduciary' more often, but increased awareness doesn't necessarily equal increased understanding," explains  National Association of Personal Financial Advisors CEO Geoffrey Brown.
What is a fiduciary? A fiduciary is a professional entrusted to manage assets or wealth while putting the client's best interests first at all times. Financial advisors who follow a fiduciary standard must disclose any conflict, or potential conflict, to their clients prior to and throughout the advisory engagement. Fiduciaries will also adopt a code of ethics and will fully disclose how they are compensated.
Non-fiduciary financial professionals can recommend investments with higher fees, riskier features and lower returns because they earn more money for the advisor, even if those investments are not the best choice for their clients.
Who is a fiduciary? Registered Investment Advisors (RIAs) are held to a fiduciary standard of care. By law, they must act solely in the best interest of their clients. To ensure your advisor or a potential advisor is following a fiduciary standard, request to see the advisor's ADV (a form filed with the SEC) or ask if they will sign a Fiduciary Oath.
How can you find a fiduciary? Accountability is important in financial planning. While there are many people in the financial industry who profess to have the client's best interests at heart, they still may have conflicts that impact their recommendations. It's important for consumers to ask the right questions of any potential advisors.  
Source: http://www.napfa.org 
Blog author image

Team H and L Miami

Team H&L Miami @ Real Estate Empire Group is a fast growing boutique Real Estate firm established in 2001. It began to revolutionize property sales as well as marketing through brokers, agents, and an....

Latest Blog Posts

Jul 15 2018 37430 1

Do You Need An Appraisal Contingency?Posted byTeam H&L Miami @Real Estate Empireon7/15/2018Once you have signed the purchase and sales agreement, the property will be appraised by a licensed

Read More

Jul 13 2018 37430 1

Is It Worthwhile to Invest in Home Improvements? Posted byTeam H&L Miami @Real Estate Empireon7/11/2018For a home seller who wants to maximize his or her house sale earnings, it may be beneficial

Read More

Jul 10 2018 37430 1

Why It's Worth Your Time to Conduct an In-Depth Home SearchPosted byTeam H&L Miami @Real Estate Empireon7/9/2018If you plan to conduct a house search, there is no reason to settle for inferior

Read More

Jul 9 2018 37430 1

Five Solutions For Creating An Eat-In KitchenWRITTEN BYJAYMI NACIRIPOSTED ONSUNDAY, 08 JULY 2018 14:06         Print  Email .

Read More