Best Fiduciary Financial Advisor in Tampa/Orlando FL
In the financial world, there is no higher legal duty than that of a fiduciary.
Being a Registered Investment Advisor, we hold the title of a fiduciary, making us legally bound to act in our clients’ best interest.
While managing your assets and guiding your financial decisions, we owe to you the duties of good faith and trust.
What Is a Fiduciary Financial Advisor in Florida?
Fiduciary means “a duty of a person to act in another person’s best interests.” In the case of an advisor, this means they have a legal and ethical duty to act in the best interests of their client.
There are some wealth management roles in USA like trustees that are always fiduciaries, but other broker-dealers and advisors, financial planners and investment advisors included, can exist in a grey zone depending on their legal status.
What Is A Fiduciary Standard?
A fiduciary standard makes it a legal requirement that an advisor must put a client’s interests first. It means avoiding conflicts of interest and making the best recommendations for the client even if it means lower fees for the advisor.
It establishes the duties of the advisor and the standards to which the advisor will be held, especially when the advisor has discretion over key decision making for the portfolio.
5 Best Elements That Make an Financial Advisor a True Fiduciary
1. Client Interests Are Paramount
In other words, a fiduciary is obligated to single-mindedly serve the best interests of their clients in all matters to do with the service they are providing and put a client’s interests above their own.
2. Conflicts of Interest Are Avoided
A fiduciary must avoid placing themselves in a conflict-of-interest situation with their beneficiaries. If circumstances are genuinely unavoidable, the fiduciary must take the following actions:
- Provide the client with a full, frank disclosure as to the nature of the conflict.
- If necessary or relevant, advise the client to seek independent advice.
- Acquire explicit consent from the client that the fiduciary can place themselves in an actual or potential conflict of interest.
Regardless of disclosure or consent, a fiduciary always needs to stay true to their first duty—ensuring client interests are paramount.
3. Clients Are Not Exploited
A fiduciary must be careful to avoid any type of personal pursuit that is not consistent with their client’s best interests. If they learn about an opportunity while acting as a fiduciary, they must not take advantage of it even if the client is not able to.
In essence, a fiduciary must not be rewarded for pursuing interests other than single-mindedly serving their client’s best interests in every matter related to the service they provide.
4. Clients Are Provided with Full Disclosure
A fiduciary is obligated to provide full disclosure of any material that is related to the service they provide. This means a fiduciary must take all reasonable steps to make clients aware of options available to them as well as any associated benefits or risks.
5. Services Are Performed Reasonably Prudently
A fiduciary must ensure they perform their services with the level of skill, care, and diligence that a reasonably prudent individual would exercise in those circumstances.
Why You Need a Fiduciary Financial Advisor
By choosing a fiduciary financial advisor, you ensure you have an advocate who sits on your side of the table to whom you can turn for objective investment advice and always rely on to put your interests first.
Ultimately, this gives you peace of mind knowing that the wealth you worked so hard to build is being effectively and sustainably managed.
Difference between Fiduciary vs. Non-Fiduciary
here are many things to consider when selecting a financial advisor. One aspect which is often overlooked or misunderstood is knowing what a financial advisor’s responsibility is toward you, their client. One way to know for sure is to ask your advisor this question:
Are you a fiduciary in all of your dealings with me?
This is a very important question. Here’s why:
By definition, a fiduciary is “a person who has the power and the obligation to act for another under circumstances which require total trust, good faith and honesty.” Fiduciaries are required to act in your best interest, regardless of what they stand to gain or lose. When we think of fiduciaries we often think of professionals, such as attorneys and accountants.
It may be natural to assume that all financial advisors are fiduciaries like other professionals we work with. After all, what could be more important than your retirement savings? But your assumption couldn’t be further from the truth. The fact is, some advisors are fiduciaries while others are not, and it’s often difficult to tell them apart.
Financial advisors who are fiduciaries will want to know your history. Of course, they will want to know about your investment accounts but they will also want to know about your spouse, your children, your parents, your career aspirations, and your hopes and dreams for your future. They will have lots of questions for you so they can manage your investments in a way that will support the life you desire.
A non-fiduciary advisor approaches your financial assets differently; they are held to a different standard. When a non-fiduciary makes a recommendation, it must only be “suitable” for someone like you – not necessarily the best recommendation for your particular situation. This seemingly small difference can have a huge impact on your finances.
Suitability and Fiduciary Duty
When considering which type of financial planner is best for you, be sure to also consider what professional standards your advisor will be held to.
Sales-based financial planners are held to a “suitability standard,” which means that as long as they have determined the product is in some way suitable for you, they have met their legal responsibility to invest on your behalf.
On the other hand, fee-only financial planners are held to a “fiduciary standard,” which means that it is a primary requirement of their job to put a client’s best interests first.
You may not be familiar with these terms, but financial planners are. They know that at any point in their career, for every client they’ve had, they may have to defend their decisions to regulators, auditors, or attorneys.
Mintco Financial Fiduciary Financial Advisors in Tampa/Orlando Florida
Best Fiduciary Financial Advisor in Tampa/Orlando FL
Deciding who you want to manage and grow your money is not an easy decision.
But there are plenty of highly skilled financial planners in the world.
And these days, you’re not even limited by geography.
So many companies offer online services that you really have your pick of the best advisors in the world.
Ultimately, when determining which planner is best for you, the question you need to ask yourself is whether you believe your financial planner will be an unbiased financial advocate for you.
The most important aspect of the relationship between you and your financial planner should always be trust.
After all, it is your money and your future that you two are working to expand.
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