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Daily Capital

3 Top Reasons to Work With a Fiduciary Advisor at Any Age

As you move throughout your life, you want to surround yourself with mentors and advisors who are able to provide support specific to the season you’re in currently.

This is true for growing and maintaining a relationship with your financial advisor, who you should trust to give you the best advice and guidance for your specific needs. You can ensure this by hiring a fiduciary.

What is a Fiduciary?

Financial fiduciaries are legally obligated to act in your best interest when helping you make decisions about your money. That’s the way it should be in the first place, right? You would think that all financial advisors would be obligated to do this. However, many advisors who are not fiduciaries will recommend products you don’t really need in order to profit.

Be warned: Not all financial advisors are fiduciaries, so make sure you know what you’re stepping into when you’re ready to talk about finances. The best thing to do? Simply ask which standard they adhere to!

A 2019 Financial Trust Report by Personal Capital found that one in five people didn’t know how their financial advisor is compensated.

“Not all advisors are required to put you first,” Jay Shah, president of Personal Capital, recently told U.S. News. “Only financial advisors who are fiduciaries are required to act in the best interests of their clients.”

Read More: What is a Fiduciary? Here’s Why It Matters in Money Management

We’ll break down three reasons why you need to have a fiduciary financial advisor in your corner — no matter your age.

1. A fiduciary will offer objective advice.

When making choices about your retirement savings, assets, investments, or anything else, a fiduciary will look objectively at your financial picture. This means they will use facts, logic, and data to back up their decisions.

An objective approach is important because it takes into account actual evidence rather than using personal judgment, history, or experience. You want to know that your financial plan is based on your best interests, not how much money your advisor will make.

2. They must disclose conflicts of interest.

A conflict of interest is when someone is in a position to make a decision based on an ulterior motive. Fiduciaries are required to disclose and avoid conflicts of interest.

3. They can help you manage a variety of financial concerns.

Financial fiduciaries are there for you when it comes to any and all questions you may have about your money.

Whether it’s a one-and-done meeting or a long-term relationship, you can come to your fiduciary for things like:

Final Thoughts

At the end of the day, wouldn’t you rather have someone who you know is on your side, in your lane with you? This is what truly makes fiduciaries stand out among financial advisors.

I wish we lived in a world where we didn’t have to worry about being taken advantage of. But if you make sure to work with a fiduciary, you can ask questions, talk through matters together, and know that your finances are in good hands.

Learn About Personal Capital’s Fiduciary Advisors

Personal Capital compensates Tori Dunlap (“Author”) for providing the content contained in this blog post. Additionally, in a separate referral arrangement between Author and Personal Capital Corporation (“PCC”), Author is paid $70 and $150 for each person who uses Author’s webpage (www.HerFirst100k.com) to register with Personal Capital and links at least $100,000 in investable assets to Personal Capital’s Free Financial Dashboard. As a result of these arrangements, Author may financially benefit from referring potential clients to Personal Capital and/or be incentivized to present blog content that is favorable to PCC. No fees or other amounts will be charged to investors by Author or Personal Capital as a result of the Referral Arrangement. Investors that are referred to PCC and subsequently subscribe for investment advisory services provided by PCC’s affiliated adviser, Personal Capital Advisors Corporation (“PCAC”) will not pay increased management fees or other similar compensation to Author, PCC or PCAC as a result of this arrangement.

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.

Tori Dunlap is a millennial money and career expert. After saving $100,000 at age 25, Tori founded Her First $100K to fight financial inequality by giving women actionable resources to better their money. A Plutus award winner, her work has been featured on Good Morning America, New York Magazine, Forbes, CNBC, and more. An honors graduate of the University of Portland, Tori currently lives in Seattle, where she enjoys eating fried chicken, going to barre classes, and attempting to naturally work John Mulaney bits into conversation.
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