What is a fiduciary, and are you one?

A fiduciary is a financial advisor who is obligated to act in your best interests. They must also do their best to make sure investment advice is made using accurate and complete information and thorough analysis. Avoiding a conflict of interest is important when acting as a fiduciary, which means that advisors must disclose any potential conflicts. Financial advisors who are not fiduciaries are held to a lower standard and must offer “suitable” guidance. What’s the difference between the “best interest” and “suitability” standards? Here’s an example: two identical options suit your needs, but one is more expensive. Under the best interest standard, your advisor must recommend the less expensive option. Under the suitability standard, your advisor can recommend the more expensive one.

In our office, both Robert and Brad hold the Accredited Investment Fiduciary® (AIF®) designation.