The “F” Word

When you’re looking for someone to help you manage your finances, you’ll often hear the term “fiduciary” thrown around. But what exactly is a fiduciary, and why is it so important to work with someone who is a fiduciary all of the time?

Simply put, a fiduciary is someone who is legally obligated to act in your best interests. This means that they must put your interests ahead of their own, and they must always act in good faith when dealing with your finances.

In the financial world, there are two types of advisors: fiduciary and non-fiduciary. Non-fiduciary advisors are only required to recommend products that are “suitable” for you, which means that they don’t necessarily have to be the best options for your specific financial situation. Non-fiduciary advisors may also receive commissions or other incentives for recommending certain products or services, which can create conflicts of interest.