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How To Select a Fiduciary Adviser

Choosing a financial adviser that can serve as a fiduciary is an integral part of securing your financial future. A fiduciary should

  • Manage Your Finances
  • Act in Your Best Interest
  • Avoid Conflict of Interest
  • Have Proper Credential

It is essential to take time and care when choosing who will manage your finances. Here are questions to ask before selecting a fiduciary adviser.

What Services Do You Provide?

Financial advisers can perform their services under two standards:  suitability or fiduciary. Under the suitability standard, their only requirement is to offer appropriate advice for your particular circumstances. Fiduciary advisors must put their clients’ best interests before their own.

How Will I Pay For Services?

Brokerage firms typically fall into the category of suitability, meaning they earn their fees through commissions on investments and work to make money for themselves and you. On the other hand, fiduciary services put the best interests of their clients first and earn flat fees for their work. This method of payment helps reduce conflicts of interest.

Who Do My Friends and Family Use?

Once you decide to use a fiduciary to manage your financial interests, you may wonder how to find one. The best way to start is by asking family or friends for recommendations. When it comes to personal finances, most people will be happy to share their positive experiences and just as willing to tell you what and whom you should avoid.

What Are Their Credentials?

Although getting referrals from people you trust is an excellent way to find a fiduciary, it is always best to undertake thorough due diligence. Before trusting others with your finances, check to see if they are members of the National Association of Personal Financial Advisors (NAPFA). This organization has stringent requirements for fee-only fiduciary financial advisers.

How is My Money Invested?

Hiring others to invest your money doesn’t mean you should not be in the loop concerning how they do this. The fiduciary you are considering should be willing to discuss all strategies regarding how to grow your money.

How and When Will I Receive Updates? 

If you hire someone else to manage your money, you will want to establish methods of communication and updates about investment strategies, returns, losses and anything that affects your finances. You should expect quarterly updates, at a minimum.

A team consisting of a estate lawyer, like from the Yee Law Group, and a fiduciary adviser is the best way to ensure your family’s future.


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