What Is a Fiduciary Financial Planner?
You may have heard that a fiduciary financial planner is required to act in your best interest. But what does that actually mean for you? How is that different from what you can expect from any other financial planner? Well, it’s different because acting in your best interest is required of a fiduciary, where it’s only recommended of a non-fiduciary advisor.
The Fiduciary Standard
A fiduciary financial planner, like William Bevins CFP® CTFA, is required to act in your best interests rather than their own. Mr. Bevins is a fee-only financial planner, who does not receive sales commissions. Non-fiduciary planners are able to receive commissions for different types of investments from outside sources. As a result, they often have a conflict of interest between offering what’s best for you and what’s best for them.
What Your Fiduciary Financial Planner Needs to Know
In order to do their job well, a fiduciary financial planner needs to get to know you. That starts with finding out about the things that are important to you. In helping you with your investments, this might mean discussing factors such as; when you plan to retire, how you plan to use your investments, and what investments are the best fit.
In reviewing these factors, a fiduciary financial planner can help plot your best course. They can help you determine an appropriate risk tolerance, for example. Generally, risk is more acceptable for those with longer timeframes. While those near retirement seek lower risk when investing. It is also the fiduciary’s responsibility to review and adjust these risks as circumstances arise.
The best way to invest for you is not always the option with the highest potential reward. Because high reward comes with high risk, the suitability is not right for everyone. With a fiduciary financial planner you can trust that you won’t be talked into something that you’re not comfortable with. You will work with someone who wants you to get the best possible return for your investment, but not at the expense of your peace of mind.
On top of that, a fiduciary financial planner looks at more than just your specific investments. They look at your entire financial situation. That means understanding what investments you find interesting, your current debt situation, other investments that may include real estate, tax planning, cash flow analysis, and any large financial ‘purchases’ you’re looking to make.
Keeping Up with You
A fiduciary financial planner doesn’t just set you up with accounts and then ignore them until you’re ready to cash in an investment. They continue to evaluate and monitor your financial plan. If you’re looking to invest long-term, there is some benefit to the ‘set it and forget it’ strategy. Typically, however, adjustments will be required as you get closer to the time you want to start withdrawing money from your investment accounts. Having a dedicated advisor who is familiar with your plan can make all the difference.
If your goals are earning the highest return, something with low to moderate risk, or certain types of investments that align with your beliefs, a fiduciary financial planner is there to help you achieve those goals. No matter what you’re looking for, a fiduciary planner helps you get there, even if your goals change over time.
If you’re in need of a financial planner, make sure you’re hiring a fiduciary to take care of your finances. William Bevins can help you with creating an overall financial plan that supports your needs and your goals now and in the future. Give him a call or email to find out your next steps today.
