ADVERTISEMENT

Helping people make smart financial decisions

Defining Fiduciary: An Unfamiliar Word with a Lucrative Meaning

IN THE PRESS:



The term “fiduciary” is defined as “one who holds a fiduciary relation or acts in a fiduciary capacity.” It’s not exactly the most helpful description.

For a term that has existed since the 1600’s, fiduciary has certainly done a good job of concealing its meaning.

A more helpful definition might be: “someone to whom property or power is entrusted for the benefit of another.”

Now that we can understand.

The most reputable financial advisors are fiduciaries -- professionals sworn to act in your interest while managing your assets or money. In other words, rather than making recommendations in their own self-interest (i.e by pushing products that earn higher commissions, etc., a fiduciary financial advisor is obligated to make recommendations that benefit you.

The advantages of 
working with a fiduciary are numerous. Studies show that Americans who seek the advice of fiduciary advisors earn higher returns and increased financial assurance. A recent Northwestern Mutual study uncovered that American adults who work with a financial advisor reported “substantially greater financial security, confidence, and clarity than those who go it alone.”1

Given such a clear advantage, shouldn’t all Americans be working with a financial advisor by now? Perhaps. But not just any financial adviser will do. 
Finding a fiduciary with a reputation for acting in customers’ interest, growing wealth, and advancing their interests takes time and effort.
 
Google search engine results related to the topic reveal a desperate search for direction. “Best fiduciary financial advisor,” “fiduciary financial advisors near me,” and “financial investment advisors near me” each garner hundreds of searches each day.


We think that selecting a fiduciary shouldn’t require this much work. And now, it doesn’t.


Our 
free matching tool helps Americans get matched with three local advisors so that they can decide which advisor is best/right for them. Just answer a few short questions about your financial goals before receiving the names of three fiduciary financial advisors near you. After that, the choice is yours.

Click Your State to Get Matched With Financial Advisors Near You

After you choose your state and answer a few questions about your financial situation you can compare up to three advisors local to you, and decide which to work with.

Investing involves risk and no situation is the same. This is in no way intended as a personal recommendation and investment decisions are solely those of the reader.

SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAdvisor acts as an adviser for clients with respect to their introduction to and, if retained by the client, servicing by third-party investment managers, tax planning and legal professionals who are unaffiliated with SmartAdvisor.


We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

Sources:
1. Northwestern Mutual study
2. Value of a Gamma-Efficient Portfolio (2017), Morningstar Investment Management.
3. The Return on Advice (2016), Envestnet, Capital Sigma.
4. Value of a Financial Advisor Study (2017), Russell Investments.
5. Advisor Value (2014), Voya Retirement Research Institute.

6. Journal of Retirement Study
7. Vanguard (2019), Putting a Value on Your Value

Get Smart with Your Assets

Terms of Use  |  Privacy Policy  |  About Us

© 2020 SmartAsset

SmartAsset AWARDS & ACCOLADES

Answer SmartAsset
advisor match quiz

Answer a few questions to help us get to know you and your financial planning needs

Review your matches

We help you stay in control of the advisor search by giving you up to three pre-screened choices for you to review at your leisure

Connect with advisors

We’ll help facilitate introductions in the format that makes sense for you

Answer a few questions to help us get to know you and your financial planning needs

Answer SmartAsset
advisor match quiz

We help you stay in control of the advisor search by giving you up to three pre-screened choices for you to review at your leisure

Review your matches

Connect with advisors

We’ll help facilitate introductions in the format that makes sense for you

map
AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC