What is a Fiduciary and why is having a Financial Advisor that acts as your Fiduciary important?
A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect property or money. It describes the relationship wherein one person has an obligation to act for another’s benefit in that person’s best interests. We act in a fiduciary capacity for its investment advisory clients.
When advisors recommend investments that pay commissions, a fiduciary relationship does not exist. Clients in fee-based accounts do not pay commissions, hence a fiduciary relationship exists. You will be required to pay transaction fees pertaining to the trades done in your account, however we do not keep any of these fees.
We do have the ability to earn commissions on certain transactions, but these cannot be executed in fee-based accounts. If a client wants to purchase an investment that carries a commission, we can facilitate in a separate, non-fee based account.