Is your financial planner a fiduciary? Financial planning is an integral part of every person’s future. From family wealth planning, to investment services, to ensuring a comfortable retirement, it’s a process that is worth your time and energy.
However, navigating this process can seem daunting as there are many factors to consider. You might be left wondering where to begin, or who to trust with such an important aspect of your life.
One key factor in setting yourself up for success is to make sure the financial advisor you choose to work with is a fiduciary.
“Fiduciaries legally bind themselves to making financial decisions in the best interest of their clients,” says Luke McNeely, co-founder of Copperline Wealth Management and Planning, and financial advisor in Cody, Wyoming.
How to know your financial advisor will fulfill their duty as a fiduciary
Many wealth management firms and financial advisors claim to be fiduciaries. That’s why it’s important to be sure the financial advisor you work with is truly looking out for your best interest and not working for their own financial gain.
You might be asking, “How can I tell if that’s the case? How do I know the term ‘fiduciary’ isn’t just being used as a marketing tactic?”
Here are some key factors that can help inform your decision:
- Ask detailed questions. When seeking out a financial advisor, request an example of a financial plan and ask about fee structures. If a firm requires 5 to 5.75% up front when committing as a client, it might be wise to weigh your options before signing the contract. Other financial advisors follow a fee-only method of compensation. According to the National Association of Personal Financial Advisors, this is the “most transparent and objective method available.” The fee-only method also demonstrates a longer-term commitment to the client.
- Get references. During your initial consultation, ask the financial advisor for references or a case study from longer term clients. Go a step further and inquire about more challenging financial scenarios they’ve worked through. In any field of work, transparency is honorable and speaks to the financial advisor’s integrity.
- Do your due diligence. Take some time to do extra research about the financial advisor and firm to know exactly what you’re getting into. This brief video from TD Ameritrade also helps to explain the key differentiators between financial advisors, and what to look out for when it comes to fiduciary duty.
By considering these recommendations, you’ll be prepared to seek out a financial advisor that is committed to their fiduciary duty by taking good care of their clients.
“During the onboarding process, we make sure we know everything about clients’ financial backgrounds so we are able to make informed decisions on their behalf,” says Sara Schauermann, co-founder of Copperline, and financial advisor in Cody, Wyoming.
Learn more about Copperline Wealth Management and Planning
Your financial future is important and something that should be prioritized. As a people-oriented business, it’s Copperline’s commitment to providing wholesome financial advising strategies for every season.
For more resources about financial planning, check out our other articles on our website and follow us on Facebook. If you’re interested in learning more about financial advising services in Cody, Wyoming, we encourage you to reach out to our team.
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Want to know more about choosing the right financial advisor? Check out the article, “5 Things To Look For When Choosing A Financial Advisor.”
