Selecting a Trusted Financial Services Partner
Financial decisions are oftentimes complex and overwhelming. It’s no secret that a knowledgeable advisor can help by simplifying tax rules and outlining investment strategies that support your financial goals. But when it comes to selecting a trusted financial services partner, how do you find an advisor who will act in your best interest at every point in the process? The first step is to consult with an advisor holding himself to a fiduciary standard.
What is a fiduciary?
An advisor holding himself to a fiduciary standard should act in their client’s best interest. For some advisors this has always been the standard by which they based their recommendations for their clients. But, until recently, not all advisors were required to act this way.
Not All Financial Advisors are Fiduciaries
Legally, anyone can call themselves a financial advisor, but not all financial advisors meet the strict credentials required of a fiduciary. Financial service providers who are not required to uphold the fiduciary standard are held to a lesser legal standard of care called the “suitability standard”. For this to be met, investment recommendations from a non-fiduciary advisor generally fit the needs of the client – be “suitable”. Conflict can occur when there are multiple suitable options for a client and the non-fiduciary advisor recommends the option that provides more income to the advisor. For the advisor holding himself to a fiduciary standard, the personal income factor needs to be totally apart from what is recommended to their clients.
By consulting with an advisor holding himself to a fiduciary standard at an RIA firm, like Storen Financial, you can feel confident knowing that your best interest is at the heart of everything we do.
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Want to learn more?
Here are a few more resources to help answer your questions…
How To Choose A Financial Advisor – Forbes.com
How Fiduciary Duty Impacts Financial Advisors – Forbes.com
Blog by Brian Biggs, CPA – Financial Advisor, Senior Tax Accountant
Learn more about Brian and the rest of the Storen Financial team here.