The Bird’s Eye View:
Few people can pronounce “fiduciary” correctly, let alone describe it and explain how it impacts their world. It is a really important thing to grasp and be able to explain. So today, we’ll discuss what it means to be a fiduciary and some questions you can ask your financial advisor.
On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about fiduciaries and why it’s important for your financial planning.
A fiduciary puts someone’s best interests first. It’s being on the same side of the table as your client and doing what’s best for them. Whether you go to a CPA, estate planning attorney or financial advisor, they need to be doing what’s right for you and not have any conflicts of interest.
Let’s say you’re a Ford vehicle person and you want a new Ford Bronco. If you go to a GMC dealership and tell them you like a Ford Bronco, you probably won’t get one. They’ll want to show you their GMC vehicles. That’s a conflict of interest, and they are not looking out for your best interests.
A fiduciary in the financial world should help you pick investments, strategies, etc. that are best for you so you have a high probability for success. They shouldn’t be paid differently for what they’re suggesting.
We charge a percentage of assets that we manage. Why? Because if you’re conservative or aggressive, we get paid the same amount. The better you do with those chosen strategies, the better we do. Our job is to keep you on track, not generate additional revenue.
So, how can you spot a fiduciary? It can be complex, but the best defense you have is to ask the person. You can ask what standard of care they use. Do they fall under the suitability standard or the fiduciary standard when they give advice?
There are five critical questions to ask anyone that’s giving you financial advice. The first is: Have you adequately reviewed my financial situation? We’ll share more questions in today’s podcast.
Listen to the full episode or use the timestamps below to find specific segments.
1:03 – How to pronounce fiduciary
2:33 – Your best interests
8:30 – How to spot fiduciaries
10:29 – Five questions to ask
Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.
Scott Dougan, RFC, Investment Advisor – Contact