A fiduciary is someone legally and ethically bound to act in another person’s best interest when managing assets. This responsibility, which rests on principles of good faith and trust, represents the highest legal duty one party can owe to another. 

When it comes to financial advising, finding a fiduciary advisor is crucial. Unlike non-fiduciaries, fiduciary advisors must prioritize your needs over their compensation, ensuring a commitment free from conflicts of interest. However, not every financial advisor is a fiduciary. Only Registered Investment Advisors (RIAs) registered with the SEC or a state securities regulator are legally bound by fiduciary duty. In contrast, broker-dealers, stockbrokers, and insurance agents need only meet a “suitability” standard, which allows them to recommend suitable but potentially higher-cost products that may favor their commissions over your financial best interest. 

This potential conflict of interest is also present with “Hybrid” advisors, who operate in both fee-based and commission-based environments. Even automated “Robo-Advisors,” which are technically fiduciaries, may fall short by relying on limited input from short questionnaires instead of in-depth, personalized advice. 

Working with a fiduciary financial advisor offers greater peace of mind. Knowing they are legally obligated to make decisions in your best interest, you can trust that they will provide guidance aimed at your financial well-being. 

Contact Yes Wealth Management at 651-426-5854 to explore a financial plan tailored to your needs.

FINANCIAL CARE THAT’S REFRESHINGLY HUMAN.®