Fiduciary Near Me: Licensed Financial Advisors – PillarWM
Financial planning and wealth management advice are crucial for investors with high net worth and ultra-high net worth. Becoming a financial expert to manage your immense wealth can be time-consuming, and at times, overwhelming. So, for those of you with $5+ million of liquid investable assets we suggest you download this free in-depth book about fiduciary advice and wealth management.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
High earners tend to focus their time on the next big business investment or their next career move. Therefore, many prefer to hire a financial expert and fiduciary financial advisor team for this purpose. This may lead you to wonder, “Where can I find a fiduciary near me?”. If you’re an affluent investor with $10+ million in liquid investments, you have the opportunity to download our guide on finding a financial advisor for free!
Getting a well-informed opinion from a financial expert on your wealth management options will guard your financial future. They can help you draw up plans and execute them, keeping in mind changes in legislation, economy, and investment opportunities. At Pillar Wealth Management, we give financial advice to investors with $5 million to $500 million in liquid investment assets. Contact us for a consultation with one of our experts.
What Does “Fiduciary Financial Advisor” Mean?
If you’re exploring options to find someone to help you manage your wealth, you may have come across the term ‘fiduciary’. To make a wise decision, you first need to understand what is a fiduciary means.
A fiduciary is a person or organization that holds the responsibility of acting on behalf of a beneficiary to prudently take care of their money or assets. They hold a legal and ethical relationship of trust with their client, using good faith to put their client’s interest above their own.
A fiduciary is compelled to act in your best interest, legally obliged to abide by the highest standard of care. Financial advisors can be fiduciaries with the proper licenses. Since they treat your finances as their priority, they have fewer conflicts of interest than brokers.
For wealthy people, it is a great assurance to know that the person you are trusting for your money management will have to face legal consequences if they do not meet your interests. Fiduciary responsibilities are intended to protect your money, as the law holds fiduciaries under civil or even criminal penalties if they don’t. If you want unbiased investing advice from a fiduciary, schedule a chat with one of our professionals.
Like most advisors, fiduciary advisors charge a yearly fee, usually not more than 1% of the value of the assets they manage for you. They may charge a yearly retainer of a few thousand dollars.
A fiduciary is legally required to act in your best interests at all times or fully disclose any conflicts of interest, which you can reject. Not all financial advisors are fiduciaries.
An internet search should provide you with a variety of options for hiring a fiduciary in your area, including some advisors who work independently and some who work for the bigger investment firms.
It’s worthwhile for you to work with a fiduciary advisor because you know they will work with you to meet your financial goals and never let their own interests affect your relationship.
Prepare a list of your financial goals and which financial services you need, such as a retirement plan. Do some research and meet with a select few advisors to find one with whom you feel you can have an open, trusting relationship.
The Fidelity website states that the firm’s representatives are required to make recommendations that are in the client’s best interests and that Fidelity advisors comply with all applicable regulations.
Based on their certification, you can know if your advisor is a fiduciary; for example, they have a CFP certification, which binds them to a fiduciary duty. Ask your advisor if they are a fiduciary.
Hiring a fiduciary ensures they are bound by a duty of care, which means they will work only in the best interests of the client, taking into consideration the client’s circumstances and expectations.
In a fiduciary relationship, fiduciaries (such as lawyers and corporate boards) are not allowed to make decisions based on their personal interests or those of any other entity or business.
What is Fiduciary Duty?
Fiduciaries abide by a fiduciary duty, which is mandated by state and common law. It applies when a person or entity entrusts and relies on an advisor to exercise expertise and discretion on their behalf. Any breach in this duty can be prone to civil and criminal penalties upheld by the court. However, to prove negligence in fiduciary duty requires factual evidence that proves that the fiduciary had ill will towards their client. The advisor may have acted in the client’s best interest when placing an investment, but other factors could have brought about great losses.
Three fiduciary responsibilities are dictated by law: the duty of care, the duty of loyalty, and the duty of obedience. All fiduciaries must ensure that their service follows each of these categories. Their client’s interests must take precedence over their own. Therefore, advisors are prohibited from making trades or placing investments in assets or investment products that could result in them receiving a higher commission for themselves or their firm.
Fiduciary and Department of Labor (DoL)
The Department of labor is an official agency in the United States of America that has a function as the regulator and the controller of the market and the other economic areas in the United States. Department of Labor released the latest rule that describes if the fiduciary should work to its client with total and put their clients first above their self-interest. Department of labor also pushed the fiduciary financial firm to be more transparent in the report and prevent any acts that could create the latent conflict between the firm and its client.
In fact, Pillar WM had already worked with that ethics for years in this industry before the Department of Labour released the rules. We put our clients’ needs on top priority to ensure they receive the maximum user experience while having us manage their assets.
The Fiduciary Responsibility of Investment Advisors
With several high-value assets in your name, you can’t be too careful about who you seek advice from. Intelligent investment requires you to have a strong investment portfolio that is monitored and adjusted by a professional. We talk more about how to improve your portfolio’s performance in our guide.
An investment advisor is responsible for using accurate and complete information to thoroughly analyze your asset allocation and give you investment advice. The Securities and Exchange Commission (SEC) or state securities regulators hold investment advisors to a fiduciary standard. Their priority should be to trade securities to achieve the lowest costs and the most efficient execution. They are required to disclose any potential conflicts of interest to their client. The SEC has stringent rules stipulating that advisors must put their client’s interest above their own while also dictating how much they can charge their client.
Fiduciary Duty vs. Statutory Duty
Fiduciary duties differ from statutory duties in the sense that statutory duties are implemented to encourage the best interests of the company. They require directors to work under the company’s constitution and exercise independent judgment to help the institution succeed. For example, a bank’s financial advisors are bound by the policies of their institute, and their decision-making caters to protect its reputation.
Is a Financial Advisor and a Fiduciary the Same?
As an investor, you may be wondering, “What is the difference between a financial advisor and a fiduciary?” While a fiduciary’s job is similar to a financial advisor, not all financial advisors are fiduciaries.
Just because someone is a financial advisor does not guarantee that they are a fiduciary. A financial advisor who follows the fiduciary standard of care is legally obligated to act in your favor to resolve any conflicts of interest without using your assets for their own benefit. These mainly include independent registered investment advisors.
Others may follow a suitability standard that merely requires them to gives you advice that is suitable for your needs. Insurance agents from an insurance company or a broker who works for the broker-dealers’ firm are normally held to this standard. Therefore, you should always make a habit of asking your advisor which standard of care they abide by. If you’re an investor with $10+ million of liquid assets, it is even more crucial for you to be cautious. Our exclusive guide tells you what you need to know when selecting your financial advisor.
How Do They Differ?
Financial advisors help you address the problem relating to your personal finances and wealth management issue. They assess your current and future financial goals by taking an in-depth look into your financial life. Using this data, they can coach you through unforeseen financial constraints and set up investment accounts that cater to your investment portfolio. You can learn more about how to shift your investment success in our guide. Your financial advisor can design an entire retirement plan for you and help you with other areas of concern such as estate planning, taxes, insurance policies, and so on. However, the financial advisory field does not necessarily require a license. Certified advisors with proper credentials include certified financial planners (CFP), chartered financial consultant (ChFC), and chartered financial analyst (CFA).
Fiduciaries respect your financial goals and consider your risk tolerance to advise you towards the appropriate action. In good conscience, they will not advise you to invest in high-cost assets for profit in their commission. They must also explain their reasoning for allocating your assets by assuring to disclose any potential conflicts of interest.
If you inform your fiduciary that you want to invest conservatively to preserve your income rate, they will advise you against volatile investments. Alternatively, if you have an aggressive investment portfolio, they can recommend the appropriate action to allow your wealth enhancement while warning you of high-risk investments.
Should You Consult a Fiduciary?
Increasing wealth and safeguarding their assets is a priority for high net worth and ultra-high net worth investors. This requires money management or wealth management so that you can monitor, evaluate and make timely adjustments to your financial profile. Knowing which financial advisor to choose can become overwhelming. Our Ultimate Guide tells you the various factors you should consider in order to make the best choice.
Keeping up-to-date with all the changes in tax laws, legislation, the risk to return ratios, and interest rates can be very time-consuming. Fiduciaries provide you with concise information to help you allocate your assets. They take on the task of monitoring funds, evaluating growth rates, and risk management. Unless you have expertise in financial management and adequate knowledge of investments, it may be worth your while to consult a fiduciary. Our wealth managers have decades of experience in financial management. Make an appointment with one of them to get started.
Major life events can often lead you blind-sided in terms of finances. Enlisting professional help to create a long-term financial plan can keep you on the right track. Whether you would like to double-check if your retirement plan and retirement accounts are secure, want an expert’s opinion on investing, or just protect your wealth, a fiduciary can assist you. Avoid personal financial crises with advice from our book: The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.
Finding a Fiduciary Financial Advisor Near Me
With all the different financial advisory services available nowadays, the main concern on your mind might be, “How do you know if someone is a fiduciary?” After all, that person is going to be in direct association with your finances, so be sure to do some background research on them.
If the financial advisor or their firm acts as Registered Investment Advisors, they will have a “Form ADV Part 2A” filing available on their site. You can search for fiduciary advisors through the SEC’s adviser search tool. Reputable and trust-worthy Fiduciary Financial Advisor will have certifications and the relevant educational background. You can also find their status on the National Association of Personal Financial Advisors (NAPFA) and make sure the firm that you are looking for is registered.
Fiduciary Financial Advisor Fees
Fiduciary financial advisors can charge you based on the number of funds you require them to manage. Typically, many advisors have a fee structure ranging from 0.25% to 1% per year. Another one may charge a fixed hourly rate or annual fee, while some may charge a straight commission instead.
The financial planner that paid purely by fee-only is also known as fee-only advisors or fee-only financial planners. If you are high net-worth individuals who are looking for a financial planner or advisor, the perfect option is by choosing the fee-only financial advisor because a fee-only financial advisor is perfect for serving someone with significant assets to be managed plus having the complex financial needs on their financial sector such as Pillar Wealth Management.
Suppose you manage to find the fiduciary financial advisors by yourself. In that case, you can try advisor search google. Still, if you are a high net-worth individual with $5 million to $500 million in liquid investment assets, you don’t have to waste your time by searching for that because Pillar Wealth Management is the perfect one that you are looking for.
Despite the fiduciary duty holding advisors liable for their practices, some necessary caution must be taken on your end. You can begin by asking the fiduciary financial advisor questions that can help you obtain a clearer picture of their suitability for you. Here are a few examples of the kind of information you need to know about your advisor:
– Do they follow a fiduciary standard or a suitability standard?
– What are their certifications and accreditations?
– How much fee do they charge, and what is their commission rate?
– Do they have experience in working with clients that match your financial background?
– Do they have a limitation in their number or frequency of their consultations?
– What array of services do they offer?
– How often will they review and rebalance your portfolio or financial plan?
With changes in the nature of the advisory field, virtual consultations are taking precedence over traditional in-person consultations. Investor accounts can be monitored and accessed digitally, allowing you more control over your assets.
Is My Financial Advisor a Fiduciary?
According to SEC regulations, investment advisors and brokers base their advice on the goals of their clients, but they are not governed by the same standards. Investment advisors are bound by a fiduciary standard, while brokers serve the interests of their employer and are held to a suitability standard set by the Financial Industry Regulatory Authority (FINRA). An advisor may also be a broker.
Certified Financial Planners (CFPs) are Fiduciaries
Having a CFP certification ensures your advisor is a fiduciary. This certification requires the advisor to adhere to a strict code of ethics and standards of conduct. These include acting in the client’s best interests, avoiding conflicts of interest, and protecting the privacy of client information.
CFPs must fully disclose conflicts of interest to the client, and they must act without regard to the financial interests of their firm or any entity other than the client.
The Term “Fiduciary” May Be Unclear
When you’re thinking of hiring a financial planner or advisor, be prepared to ask them questions about their credentials, training, and background. Ask if they are a fiduciary and how they define their role in that regard. Helping you meet your financial goals should be their primary concern. How will they keep you informed?
Your Advisor Must Work in Your Best Interests
If your advisor is a fiduciary, they must work in your best interests at all times, as well as place your interests above their own interests or the interests of their firm.
Your advisor must act with the care, skill, and diligence that reflect your circumstances, goals, objectives, and risk tolerance.
A fiduciary has a duty to follow client instructions.
How Do Fiduciary Financial Advisors Mitigate Conflicts of Interest?
A fiduciary advisor must fully disclose any conflicts of interest that could damage the professional relationship. The advisor must provide the client with sufficient information for the client to understand the conflict of interest and either give informed consent or reject the advice related to the conflicts.
The advisor will not offer products about which they have insufficient knowledge.
How to Find a Fiduciary Financial Advisor
A Google search will show you that there are many websites that have a search option for finding a financial advisor. Some of them are investment firms that will help you find one of their advisors in your area.
Some professional organizations can help you find a financial advisor—NAPFA (The National Association of Personal Financial Advisors), Garrett Planning Network, XY Planning Network, and ACP (Alliance of Comprehensive Planners).
Certified financial planners are fiduciaries, and the Certified Financial Planners Board has an advisor search tool.
Contact some advisors that appeal to you, and talk to them about how they can help you meet your financial goals. Ask plenty of questions: Are they a fiduciary; do they act as a fiduciary in all circumstances? Ask them how they are paid—their fee structure could be fee-based, commission-based, fee-only, or a combination of these.
How Much Should I Pay for a Fiduciary?
Most fiduciary advisors charge a yearly fee between 0.25% and 2% of the value of the assets they manage for you. They may also charge an hourly fee ($200–$400/hr.) or a flat fee for certain services, such as preparing a financial plan ($1,000–$3,000).
Your hard-earned money deserves the utmost protection. Fiduciary financial advisors follow a high standard of care and are liable to legal ramifications in the case of intentional or unintentional neglect. This makes them a safer option to consider for affluent individuals when choosing an advisor to oversee their wealth.
Doing your own research into financial management and investment strategies and staying up to date with changes in the financial world can help you stay informed. In this way, you can communicate better with your fiduciary and make informed decisions concerning your finances. Wealth managers at Pillar Wealth Management are skilled in managing the financial affairs of investors with $5 million to $500 million in liquid investment assets. If you would like to entrust your financial life to the hands of experts, schedule a free consultation with us today!
To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.
We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.
You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.