What is a Fiduciary and What Difference Does it Make?

“Can You Trust Your Financial Adviser?” Liz Pulliam Weston, Columnist for MSN Money:

It's a $10 word, but not knowing it could cost you a fortune. The word is ‘fiduciary,’ and in the world of money it means someone who's committed to putting your financial interests ahead of his or her own. The word is important because true fiduciaries are harder to find than you might think. Most of the people who want to give you advice about your money aren't held to that high standard. At best, they're held to a ‘suitability’ standard, which means they're supposed to reasonably believe that the investment and insurance products they want you to buy are appropriate for your situation. Just ‘appropriate’–not ‘the best choice’ or ‘in your best interests.’

You need to find an Investment Advisor because they are the only ones who have a fiduciary responsibility to do what’s in your best interest. You will still have to interview Investment Advisors in order to find one who charges a modest fee (1-1.5%) and has the experience you need. Understanding this places you at a vantage point where it will be difficult for anyone to manipulate you again.

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