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What Is A Fiduciary?

What Is A Fiduciary?

| February 02, 2022

In the financial world, you’ll often see the term “fiduciary” used. But what exactly does this term mean, and how does it impact your relationship with a financial advisor? At Horizon Planning Group, we aim to educate our clients so that they can make informed decisions regarding their financial futures. Here’s what you need to know about fiduciaries and the importance of working with one for your financial planning needs.

What Does It Mean?

The term “fiduciary” refers to any individual who has an ethical duty to act in the best interest of another person. In the world of finance, this means that a fiduciary will only make investments or recommend financial services that are the best fit for your individual needs. Fiduciaries operate on a bond of trust and must avoid conflicts of interest and disclose any potential conflicts.

To be considered a fiduciary, the advisor must adhere to the following standards:

  • Put clients’ interests first.
  • Provide all relevant information to clients when making financial recommendations.
  • Ensure they provide accurate advice, based on the information provided.
  • Avoid using clients’ assets to benefit themselves, including buying a security in their personal account before the client’s, or choosing an investment vehicle with a higher payout over one that provides the same benefit at a lower cost.

Are All Advisors Fiduciaries?

Unfortunately, not all financial advisors are fiduciaries, and it can often be difficult to tell which advisors truly hold a fiduciary commitment to their clients. The best way to ensure that you’re working with a fiduciary is to work with a CERTIFIED FINANCIAL PLANNER™, or CFP®. The CFP® code of ethics states that anyone holding this designation “must act as a fiduciary, and therefore, act in the best interest of the client.”

Why Work with a Fiduciary?

When it comes to something as important as your financial future, you shouldn’t entrust it to someone who doesn’t have your best interests at heart. A planner who is beholden to proprietary products or sales quotas may not always recommend the options that are best suited to your needs.

At Horizon Planning Group, our fiduciary financial planners are committed to putting your interests first. No matter what your goals and needs may be, we will only recommend those products and services that we feel will help you meet those goals. Contact us today to learn more about how we can help you.

About Scott Bechely

Scott began his career in the financial industry in 2004 and became an associate financial advisor in 2007 He joined Horizon Planning Group in 2015, where he is now one of our skilled financial advisors. Scott specializes in retirement income planning, helping give our clients security and peace of mind in their retirement finances. He’s a big fan of most sports and enjoys playing in his baseball league and golfing. Scott lives in Woodstock, Georgia, with his wife, Sara; their daughter, Anna; and their dogs, Ginger and Bailey.

Schedule an appointment with Scott here.

About Horizon Planning Group

Horizon Planning Group was founded in 2006 by Gary L. Holcombe. Based in Woodstock, Georgia, our firm is committed to being a part of our beautiful, small-town community while serving clients on a national scale. We offer full-spectrum financial planning services and a fiduciary commitment to always do what’s right by our clients.

It’s our goal to become a resource you can turn to when making any big decisions that affect your financial horizon. With our collective knowledge and experience, we can help you develop strategies to address almost any concern related to your finances.

Want to learn more about how we can help? Click here.