Do I Need a Fiduciary?
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- Do I Need a Fiduciary?
What Does It Mean to Work With a Fiduciary?
A fiduciary financial advisor has a duty to put clients’ interests first when providing financial advice. That duty applies to the advice they give, regardless of whether they charge a flat fee, an hourly fee, or a percentage of the assets they manage.
- How Is The Advisor Compensated?
How an advisor is paid is important for you to understand. Some advisors are paid only by client fees, while others receive both fees and commissions from certain financial products. Either arrangement can create potential conflicts of interest. What matters is that you understand the costs, how your advisor is compensated, and whether a recommendation could benefit the advisor financially.
Before choosing an advisor, ask what services they provide, what you will pay, whether they receive commissions or other compensation, and how they address potential conflicts. Clear answers can help you make a more informed choice. If the advisor is a fiduciary, they must disclose to you any potential conflicts of interest.
- Understanding the Fiduciary Standard
Investment advisers have a fiduciary duty to act in their clients’ best interests. This includes a duty of care when making recommendations and a duty of loyalty that requires them to address material conflicts of interest. Depending on the firm, investment advisers are regulated by the SEC or a state securities regulator.
The term fee-based describes how an advisor may be paid; it does not, by itself, tell you which legal standard applies. An advisor may receive fees for advisory services and commissions from certain products. Broker-dealers making investment recommendations to retail customers are subject to Regulation Best Interest, which also requires them to address conflicts and prohibits them from placing their interests ahead of the customer’s.
When choosing an advisor, ask which services they will provide, how they will be compensated, and which standard applies to your relationship. Turning Point Financial acts as a fiduciary when providing investment advisory services.
Learn more about the background of Turning Point Financial, Inc.
Get In Touch With Us
Address
15720 Brixham Hill Ave. Ste 300 Charlotte, North Carolina 28277
Phone
(704) 243-4222
(704) 228-4261
mark@turning-point.us