Amended 1099′s
Tax season can be a frustrating time for any investor. This frustration can evolve into a very irr…
Mar 21 2013Accredited Investment Fiduciary® Advisor
Unlike car salesmen and most financial advisors, we embrace our fiduciary obligation in writing to our clients. Only the highest standard of care is acceptable for our clients.
The cold hard truth is there are two standards of client care and responsibility in the industry:
- Suitability Standard Of Care. The suitability standard of care is the lowest acceptable level of care in the industry. About 94% of all financial advisors settle for the suitability standard of care, which states the broker must perform reasonable diligence on products, understand those investments and have a reasonable basis to believe that a security or investment strategy is suitable. Pretty weak right?
- Fiduciary Standard Of Care. The fiduciary standard is the highest level of care in the industry. Your attorney, your accountant and your doctor must embrace a fiduciary standard of care. We acknowledge our responsibility as a fiduciary to you and embrace that standard in writing with each client.
Why don’t most financial advisors embrace a fiduciary standard of care? Simple, the big brokerage firms have lobbyists in Washington who know it would increase the number of lawsuits their brokers would subject them to. Most brokers – and ALL CAR SALESMEN – do not hold themselves to a fiduciary standard of care because they risk expensive lawsuits from bad investment and financial advice.
Which standard of care sounds better to you and your financial planning?
The Definition of Fiduciary
The Board of Directors, representatives, and financial advisors comprising NAPFA (The National Association of Personal Financial Advisors ) have adopted the following definition of Fiduciary:
fi-du-ci-ar-y – A financial advisor held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a Fiduciary, the financial advisor is required to act with undivided loyalty to the client. This includes disclosure of how the financial advisor is to be compensated and any corresponding conflicts of interest.
NAPFA believes advisors must receive compensation only from their clients, must disclose any possible conflicts of interest, and must be loyal to the best interests of their clients.
- Compensation – NAPFA members are compensated solely by their clients, and do not receive any outside inducements for recommending investments or financial products. This is the true definition of being a “Fee-Only Advisor”
- Loyalty – An advisor who is loyal to only his or her clients will not be swayed by outside forces to recommend investments with higher commissions or payouts
- Disclosure – People must understand how their financial advisor is being compensated and whether or not any potential conflicts may impede an advisor’s ability to provide truly independent advice. Disclosure must be made before a client works with an advisor or implements any of his or her advice
We’re a truly independent fee only financial advisor which embraces our fiduciary responsibility to each and every client.
