What is a Fiduciary?
A fiduciary has a legal requirement to put someone else's interest ahead of their own.
Consumers often assume that their financial advisor is a fiduciary but that is not always the case. Many financial firms have advisors who adhere to what is called a “standard of suitability.”
This means that while a fiduciary would be legally required to give you the best option possible, a non-fiduciary advisor would only have to give you an option that is suitable.
Non-fiduciary advisors often receive varying financial incentives for the products they recommend (sell) to you. So, if they get paid more for one product, that's probably the one they will recommend the most often to their clients. According to the National Association of Professional Financial Advisors (NAPFA), non-fiduciary advice can cost investors up to $17 billion annually in fees.
Fiduciary advisors, such as Convey Wealth Management, never receive compensation or commissions for their recommendations. Just unbiased advice based on your goals and needs.
For more, visit Fiduciary 101 on the NAPFA website.