Don’t be scared by the mysterious title of “fiduciary.” This is simply a person who makes recommendations and acts for you in the interest of your financial success. Simply stated, a fiduciary’s duties shift the focus from a business’ interests, like selling products and increasing sales, to your own wants and needs. Acting as a fiduciary administrator is considered the highest standard of care.
At TRS, we believe that the fiduciary principal is the only way to serve our clients.
Financial Planners vs. Brokers
How do you know if your financial advisor is acting as a fiduciary? In most cases, they aren’t. You may see your financial advisor simply as a broker; you view him/her as a sales person to invest in the stock market, not someone with whom you would share your intimate hopes and dreams. A relationship with a financial planner, however, is meant to guide you through the many options available to decide on the best strategy for your particular situation.
Understand that an investment advisor’s loyalty is to you and your future, while a broker’s loyalty is to commission on the impending sale.