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If you’re serious about your finances, you need to remember the term 'fiduciary.' It’s crucial when selecting someone to assist with your money matters. And with the Fiduciary Rule potentially being dismantled, it’s your responsibility to ensure your advisor has your best interests at heart.
A Certified Financial Planner® once emphasized to me that I should clearly identify her as such in an article. 'With the registered trademark and all,' she explained. I asked why it mattered so much, and she replied that CFPs take a fiduciary oath to prioritize the client’s needs. When you work with a CFP who is a fiduciary, you can trust that their goal is to help, not to push you toward subpar financial products.
Here’s the reality: non-fiduciary financial planners may suggest products or investments from which they receive a commission, even if those choices don’t deliver great returns. As we've mentioned before, the White House’s Council on Economic Advisers has stated that non-fiduciaries cost retirement investors a staggering $17 billion annually. But CFPs aren’t the only ones bound by a fiduciary oath—Registered Investment Advisors (RIAs) are fiduciaries too. If you’re unsure, just ask.
The bottom line is simple: when hiring someone to manage your finances, ask them this key question: are you a fiduciary? If the answer isn’t a definitive yes, it’s time to move on. While they might offer some solid financial advice, it’s likely their main goal is to sell you an investment product that may not be the best fit for your financial health.
It’s important to remember that some banks, credit unions, and investment services may offer free financial guidance as well (like in the case of this Redditor). The key takeaway is the same—always ask if they’re a fiduciary.
