Today’s Prep:
On this inaugural edition of the Retirement Ready podcast, we’ll explore the meaning behind the fiduciary standard.
(Click the featured times below to jump forward in the episode)
Equipping Points:
[1:58] – What Is The Fiduciary Standard?
- A fiduciary is someone who acts on behalf of someone else to manage their assets. They act in good faith in trust. Quite simply, this means they’re supposed to represent your best interests. Recently, we’ve heard a lot about this term as it pertains to financial advisors, but lawyers, CPAs, and executors of estates are all supposed to operate as fiduciaries as well.
[3:18] – Not Everyone Is A Fiduciary.
- You’d think all financial advisors would operate in your best interest. “Do Unto Others…” Right? Believe it or not, not all advisors operate as a fiduciary. Other folks in the financial industry operate under the suitability standard. This means that as long as you have the knowledge and the assets available to sell a certain product, you don’t have to disclose to your clients whether there’s a more cost-effective option. Under this standard, advisors also don’t have to disclose any conflicts of interest to you as the client (I.e Getting a commission for meeting a sales quota or taking a large position in one product as a company). In other words, as long as a product is “suitable,” advisors can sell it. It used to be that only registered investment advisors worked as fiduciaries in the financial services industry, but more and more folks are beginning to adhere to that standard.
[5:13] – How Do I Know If Someone Is A Fiduciary?
- If someone says they’re an investment advisory representative of a registered investment advisor, they are most certainly a fiduciary. You also want to look at the disclosures and tag lines from your advisor. If they read “securities offered through….” and list out a broker dealer, they’re also on the fiduciary standard.
Other Preparation:
Today’s Takeaway:
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
What Holds You Back From Breaking Up With A Financial Advisor?
Breaking up is hard, but sometimes you stay in a relationship too long for the wrong reasons. Is your relationship with your financial advisor working as it should? Or are you using some of these common excuses to stay with the wrong advisor?
Read More
7 Deadly Sins of Financial Planning
Like in all areas of life, it’s important to be cognizant of your blind spots and sinful tendencies. When it comes to the seven deadly sins, how do those apply in your financial plans?
Read More
Let’s Play Financial Jeopardy
Financial for 200! Financial for 400! Are you ready to match the questions with the statements like in Jeopardy when it comes to your knowledge of financial terms? Which of these currently impact your retirement plan?
Read More
Getting Your Health And Wealth In Shape
Are you feeling yourself slide into a bit of a rut? Need more tone and discipline in your life? Getting your body in shape can look a lot like getting your finances in shape.
Read More
Answering The 401(k) FAQs
Most likely, at some point or another, you’ve had the option of contributing to a 401(k). But do you know how to really leverage it? This episode will tackle some of the frequently asked questions when it comes to your 401(k).
Read More
Understanding How Your Feelings Impact Your Financial Decisions
When you make a financial decision, does it start with looking at the numbers or asking the question, “How do you feel about that?” When should your feelings overrule the numbers, and what areas of your plan are most likely swayed by feelings and emotions?
Read More
Planning Your Road Trip Towards Retirement
Think back to your last road trip–what did you do to prepare? Chances are you didn’t suddenly jump in the car and then a few hours (or days) later simply arrive. Yet this is what some people think retirement looks like. Instead, you’ve got to plan ahead and know where you’re going and how you’ll get there.
Read More
Let’s Talk About The “A” Word: Annuities
We’ve all heard about annuities, but there’s still tons of confusion about them. What are the different types of annuities? And are any of them worth having?
Read More
Should You Adhere To Conventional Financial Wisdom?
What common financial advice have you heard that is actually worth following? Do these concepts provide a better financial future for you and your family? Or are these ideas more damaging in the long-run?
Read More
How To Create A Retirement Plan Without Compromises, Part 2
We all want a certain sense of safety and security, but we also need the growth and potential that comes with risk. So how do you weigh out the two and create a plan without compromise? What tools can be used to achieve the right combination of both safety and growth?
Read More