Aug 22 2017 37430 1

Dated: 08/22/2017

Views: 125

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....

Want to Advertise on this Site?

Latest Blog Posts

Feb 23 2020 37430 1

Information is brought to you by Henry & Laly Sanz Team H&L Miami at Real Estate Empire Group Contribute to a 529 College Savings Plan With Gift Cards Parents

Read More

Que Se Considera Una Mala Puntuacion De Credito Y Como Puede Mejorar Su Credito

Qué se considera una mala puntuación de crédito y cómo puede mejorar su créditoA continuación, se explica el rango de lo que es una mala puntuación de crédito, cómo obtener un informe de

Read More

What Is Considered A Bad Credit Score And How You Can Improve Your Credit

What is considered a bad credit score — and how you can improve your creditExplained below is the range of what is a bad credit score, how to get a free credit report, and how to improve

Read More

Feb 19 2020 37430 1

Information is brought to you by Henry & Laly Sanz Team H&L Miami at Real Estate Empire Group Redoing Your Kitchen? Keep the Floor Low Maintenance � A kitchen renovation can be a

Read More