If you’re taking the initiative in your financial planning, you may have heard that you need a financial fiduciary. A fiduciary is a professional or a company that is required by law to act in your best financial interests. The fiduciary might be a financial advisor, a lawyer, or even a real estate agent. This person can manage your assets, such as investment portfolios or other accounts, as well as real estate. Because this person is required by law to manage your assets in your own best interests, they have a duty of care to your finances and must disclose if the management of your assets benefits them.
Isn’t My Financial Advisor a Fiduciary?
Many people assume that just because they have a financial advisor, this person is automatically a fiduciary. This isn’t necessarily true. Not all financial advisors are completely independent like Registered Investment Advisors (RIAs) and even though they may have advanced planning credentials, they may be limited by the firm at which they are employed.
The Right Advisor At The Right Firm
Guaranteeing the trustworthiness of a financial advisor is often the responsibility of the investor. When choosing an advisor, it’s important to look for advisors with advanced credentials such as Certified Financial Planners, Chartered Financial Consultants etc., but we would argue that it’s even more important to inquire about the structure of the firm you’re partnering with. Advisors can, for instance, pass tests and acquire some of the industry’s best credentials, but work for a company that only offers one line of products and services. It’s extremely important to understand that you’re not just partnering with an advisor, but the firm he or she operates under. Knowing if your advisor can solicit a number of different broker dealers, insurance brokers, and investment custodians in structuring your financial plan could mean the difference between decent results, and great results.
For greater peace of mind, it’s important that you are able to trust your financial advisor explicitly and trust that they are making investment decisions that are in your best interest (instead of their own). To get the best possible performance from your financial planning, look for a professional firm with fiduciary responsibility that can customize a plan for you, your assets, and your lifestyle.
Choose Toomey Invest Management in Wallingford, CT
Toomey Investment Management, Inc. (TIMI) is an independent RIA, and we believe our business model enhances our ability to enhance our client experience. We realized long ago that the financial industry dedicated many resources to capture money from prospective clients but much less to service and accountability for existing clients. At Wallingford, Connecticut-based TIMI, we listen carefully, keep in touch, and return your calls and communications quickly, so you can count on us. We will work effectively to optimize your financial situation and solve your problems. Call us at 203-949-1710 or visit our website for more information.