What Is a Fiduciary Advisor & How Can They Help You?

Investors with complex needs are increasingly seeking out independent financial advice. One way to ensure you’re getting independent advice is by working with a fiduciary financial advisor.

What is a fiduciary?

Fiduciary Def: By definition, fiduciary means “involving trust, especially with regard to the relationship between a trustee and a beneficiary.” However, the fiduciary meaning in finance refers to a financial advisor who is bound by the Investment Advisor Act of 1940. The fiduciary standard/fiduciary rule states that someone acting as a fiduciary must always act in their client’s best interest.

This law was passed in order to provide heightened protection for investors in the wake of the 1929 stock market crash. It set several standards for fiduciaries to follow in helping their clients improve their financial wellness. Believe it or not, majority of people that call themselves “financial advisors” are not registered with the SEC and are not fiduciaries. This means that they are only required to invest in “suitable” options for their clients and don’t have to invest with their clients’ best interest in mind. That is why working with a fiduciary is a great way to avoid any potential conflicts of interest.

What can a fiduciary advisor help with?

A fiduciary investment advisor can help their clients in a variety of ways. Benefits of working with a fiduciary financial advisor include:

• Customized guidance based on your entire financial picture: Independent fiduciary advisors, such as Aspen Investment Management, are not tied to any particular family of funds or investment products. So whether you need help with retirement planning, tax planning, estate planning, or managing assets in different accounts, Aspen has the freedom to choose from a wide range of investment options in order to tailor our advice based on what’s best for you.

• A relationship that’s responsive, attentive, and personal: To offer advice closely aligned with your goals, we must first build a strong understanding of your situation. As a result, our focus is on building deep relationships with our clients. This requires regular, on-going interactions with our clients, as often as they would like to interact. We don’t just want to know what is going on in your financial life, we want to get to know other areas of your life that are important to you.

• A fee structure that is simple and transparent: Our fee is based on assets under management. This fee structure is simple, transparent, and easy to understand. It also gives us an incentive to grow your assets. When you succeed, we succeed. We want complete transparency with our clients and want you to know exactly what you are paying to work with us. We want our priorities to be aligned and for you to have full confidence that we are doing what is best for you. Our firm does not sell any commission-bearing products such as annuities or other insurance products. No commissions, no second-guessing.

• Your money is held by an independent custodian, not the advisor firm: We use an independent custodian to hold our clients’ assets. For many investors, this provides a reassuring system of checks and balances. Your money is not physically held by us, we just direct how it gets invested.

There are many benefits of working with a fiduciary to build or expand upon your investment portfolio. However, the most attractive benefit is the peace of mind they provide to the investor.

Because of our fiduciary duties, you will know that we are always operating with your best interests at heart. Therefore, we will be supporting you in making smart, sustainable decisions for the betterment of your portfolio. While there is always some element of risk involved with investing, knowing you can trust your advisor is important.

Working with a fiduciary through a company such as Aspen Investment Management, clients develop a personal fiduciary relationship with their advisor. This means that Aspen will develop a clear understanding of your needs, concerns and goals moving forward. As a result, every decision that is made regarding wealth management will be specifically tailored to you as opposed to following a one-size-fits-all approach, as some investment firms attempt.

The world of investment is extremely fast-moving. This is why we also strive to keep our clients updated through open and consistent communication. Furthermore, a member of our team is always on hand should you wish to reach out and ask any questions.

Do you know if your current advisor is a fiduciary? Interested in learning more about the role of a fiduciary advisor? Do you want to know how we could help you to reach your long-term financial goals? Please do not hesitate to get in touch with Aspen Investment Management today!