Big news concerning the financial advisor space! The Department of Labor has released their fiduciary rule concerning retirement assets. For the term of the week, we're going to briefly define what a Fiduciary is.
A fiduciary is a person or organization that is responsible for managing the assets of an another organization or person. The fiduciary is legally bound to act in their client's best interest. Meaning that if it comes down to making a decision that will lose money and one that will increase revenue, if the former option is better for the client, the fiduciary must legally (and ethically) take a loss.
How does this impact you? Many financial services customers may have already assumed that their advisor was acting in the best interest. In reality most advisors are only governed by a "suitability" requirement. The suitability requirement only forces an advisor to make recommendation that are suitable for you. Sound like the same rule? It's not.
The fiduciary rule allows for the public to have legal grounds for pursuing charges against an advisor. The court must deem that a product or service recommended to the customer was not in their best interest.
As a RIA and a member of the XY Planning Network, Ignite Financial is a fiduciary and has pledged to always put the needs of our clients first. Plain and simple.