“Being a fiduciary means that the advisor must provide impartial advice in their client’s best interest and cannot accept any payments creating conflicts of interest unless they qualify for an exemption intended to assure that the customer’s interests are protected.”
So what is a financial fiduciary? Dear investor, be on the lookout. Former Secretary Of Labor Tom Perez said this: “Being a fiduciary means that the advisor must provide impartial advice in their client's best interest and cannot accept any payments creating conflicts of interest unless they qualify for an exemption intended to assure that the customer’s interests are protected.”
It is important for investors and those planning for retirement to know how to find the right financial fiduciary; “The rule requires more retirement investment advisors to put their client's best interest first by expanding the types of retirement advice covered by fiduciary protections.”
Perez also said; “Today large loopholes in the definition of retirement investment advice expose many middle-class families, and especially IRA owners, to advice that may not be in their best interest.”
Ben Offit, Fiduciary, Partner and Financial Planner at Clear Path Advisory, Baltimore, Maryland, says, “The reason this is important is because self-dealing fees can cost retirement planning savers trillions of dollars and this money traditionally ends up in the hands of the wealthy financial institutions”.
Ben also stated: “The DOL (Dept. of Labor) Rule prevents conflicts-of-interest because it is forcing advisors to adhere to the highest level of service and morality for their clients by law. If advisors don’t work within these laws, there are serious ramifications for their career and potential civil and criminal penalties. Because of this, the envelope will be pushed in a better direction to filter out advisors who are doing things the right way and will also shine a bright light on those not practicing the right way.”
It is important to know when planning for retirement, what is the responsibility of a fiduciary and that Independent advisers are not tied to any particular family of funds or investment products. So whether you need help with retirement planning, attack situation, estate planning or managing assets at multiple places, independent advisers have the freedom to choose from a wide range of investment options in order to tailor their advice based on what's best for you as your fiduciary.
So take the time to interview Independent advisors and in our next segment Ben Offit will outline some important questions to ask when finding the right Fiduciary for you and your family’s retirement and investment needs.
