Why You Should Work with a Fiduciary Financial Planner

By Last Updated: June 15, 2023
Why you should work with a fiduciary financial planner

Never has one word made such a distinction – fiduciary. Anyone can hang a shingle and refer to oneself as a “financial planner” or “financial advisor” and talk to people about money and investing. There is no training required to be called a financial advisor. However, to hold oneself out as a “fiduciary” means that the planner or advisor is always acting in the client’s best interest 100% of the time.

Fee-Only vs Fee-Based Advisors

At Wiser Wealth Management, we are fee-only, fiduciary advisors. This brings up another important distinction, fee-only versus fee-based. Which advisor is inclined to be more impartial? An advisor who sells nothing and has no conflicts of interest when it comes to product selection or an advisor who just happens to sell some insurance products which just happen to earn him/her a commission? A fee-only advisor is unfettered with no requirements to “sell” anything to clients. Fee-only advisors deliver advice designed to deliver the best outcomes for clients.

How do I know if my financial advisor is a fiduciary?

One of the easiest ways to ascertain whether your advisor is a fiduciary is to ask them how they are compensated. Some “fee-based” advisors are obviously not acting as fiduciaries when they are selling products. If any element of compensation is derived from commission or product sales, there is a conflict of interest. Some advisors derive their compensation from fees embedded in commissions earned through mutual fund sales loads or 12(b)(1) fees which aren’t already transparent or easily identified on a statement. Also, ask your advisor about the business partners with whom they deal. Make sure no remuneration is received from any referrals s/he makes to another professional such as a CPA, estate attorney, or insurance broker which would pose a conflict of interest.

What is a fiduciary financial planner’s main job?

A fiduciary financial planner’s main job is to provide financial advice and guidance for the client’s long-term benefit. Make sure your planner is a true fiduciary and free of any conflicts which would lead to less than impartial advice.

Have more questions? Contact Us

Missie Beach, CFP®, CDFA®
Senior Financial Advisor

You May Also Like

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.