The Fuss about Fiduciaries: Five Foundations, and a Few Red Flags

The word Fiduciary has become a buzzword in the financial industry over the last few years, but what does it really mean?

An investment fiduciary is a person, or entity, that has a legal and ethical responsibility to act in the best interest of their clients when managing their investments. This obligation requires the investment professional to prioritize the client’s interests above their own when making decisions related to investment strategies, financial planning, or other related services.

It may seem like common sense, but, believe it or not, some financial professionals are not fiduciaries and today, I will explain the difference. 

Hi, I’m John Gigliello and you are listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with PEOPLE who are looking to make smart and responsible choices with their money. Only through education, action and accountability can YOU build the confidence and security YOU need to live a SATISFYING life. 

 

Today, I am going to explain what it means to be an investment fiduciary, why you might want to consider working with one and how to determine who is, and who is not, a fiduciary.

Let me start by saying that in my practice as a CERTIFIED FINANCIAL PLANNER™ with the Albany Financial Group, I am an investment fiduciary. Clients are always welcome to ask me about that and what it means for them specifically. 

It’s a question I get all the time: Don’t all advisors act in the best interest of their clients?

Well, most probably do, but not all are required to. That’s what separates investment fiduciaries from other advisors.