Fiduciary Near Me:
The Complete Guide to What We Do
Financial planning and wealth management counsel are crucial for investors with high net worth and ultra high net worth individuals. Becoming a financial expert in order to manage your immense wealth can be time-consuming, and at times, overwhelming. 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 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!
Strategies For Families Worth $25 Million To $500 Million
The Art of Protecting Ultra-High Net Worth Portfolios and Estates
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.
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.
Table of Contents
What Does Fiduciary Mean?
If you’re exploring options to find someone to help you manage your wealth, you may have come across the term ‘fiduciary’. In order to make a wise decision, you first need to understand what is a fiduciary mean.
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.
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 been acting 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 that could result in them receiving a higher commission for themselves or their firm.
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.
Investment advisors are responsible for using accurate and complete information to thoroughly analyze your asset allocation, and thus give you advice on investing. The Securities and Exchange Commission (SEC) or state securities regulators hold investment advisors to a fiduciary standard. Their priority should be to trade securities with the aim 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, bank’s financial advisors are bound by 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 company financial advisors or brokers working for a broker-dealer 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 issues relating to your personal finances and wealth management. 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 take your risk tolerance into consideration to advise you towards the appropriate action. In good conscience, they will not advise you to invest in high cost assets for the purpose of profit in their commission. They must also explain their reasoning for the allocation of 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 an 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 is 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 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 website. You can search for fiduciary advisors through the SEC’s adviser search tool. Reputable and trust-worthy fiduciaries will have certifications and the relevant education background.
Fiduciary financial advisors can charge you based on the number of funds you require them to manage. Typically, many advisors have a fee ranging from 0.25% to 1% per year. Others may charge a fixed hourly rate or annual fee, while some may charge a straight commission instead.
Despite the fiduciary duty holding advisors liable for their practices, some necessary caution must be taken on your end. You can begin by asking your 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.
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!