Why Use a Fiduciary?
A fiduciary is a person or entity that has a legal and ethical duty to act in the best interest of their client, putting their clients' needs ahead of their own. Hiring a fiduciary can be beneficial for several reasons:
Trust: As a fiduciary, the professional is required to act in your best interest and maintain a fiduciary duty, which helps build trust and confidence between you and the advisor.
Expertise: Fiduciaries typically have specialized knowledge and experience in financial matters, including investments, taxes, and estate planning, which can help you make more informed decisions and optimize your financial strategy.
Accountability: Because fiduciaries are held to a higher standard of care and must act in your best interest, they are more accountable for their actions and decisions, which can help protect you from conflicts of interest and unethical behavior.
Reduced stress: A fiduciary can help take the burden of managing your finances off your shoulders, allowing you to focus on other areas of your life.
Improved outcomes: By working with a fiduciary who has your best interests in mind, you may be able to achieve better investment returns, reduce taxes, and achieve your financial goals more efficiently.
Overall, hiring a fiduciary can provide you with peace of mind, expertise, and accountability, which can help you achieve your financial goals and protect your interests.
Trust: As a fiduciary, the professional is required to act in your best interest and maintain a fiduciary duty, which helps build trust and confidence between you and the advisor.
Expertise: Fiduciaries typically have specialized knowledge and experience in financial matters, including investments, taxes, and estate planning, which can help you make more informed decisions and optimize your financial strategy.
Accountability: Because fiduciaries are held to a higher standard of care and must act in your best interest, they are more accountable for their actions and decisions, which can help protect you from conflicts of interest and unethical behavior.
Reduced stress: A fiduciary can help take the burden of managing your finances off your shoulders, allowing you to focus on other areas of your life.
Improved outcomes: By working with a fiduciary who has your best interests in mind, you may be able to achieve better investment returns, reduce taxes, and achieve your financial goals more efficiently.
Overall, hiring a fiduciary can provide you with peace of mind, expertise, and accountability, which can help you achieve your financial goals and protect your interests.
Brokers, Bankers and Insurance Agents.
It is important to note that brokers, bankers, and insurance agents are not typically held to the same legal standards as fiduciaries, and may not always act in the best interests of their clients. While some professionals in these industries may act as fiduciaries, many others are held to lower standards of care.
For example, brokers are typically held to the suitability standard, which means that they are only required to recommend investments that are suitable for their clients based on factors such as age, risk tolerance, and investment goals. They may also receive commissions or other incentives for recommending certain investments, which can create conflicts of interest.
Bankers, on the other hand, are not typically held to a fiduciary standard when selling financial products such as mortgages, credit cards, or personal loans. They are required to provide accurate and truthful information about their products, but are not legally obligated to act in the best interests of their clients.
Similarly, insurance agents may not be held to a fiduciary standard when selling insurance products. They are required to provide accurate information about the policies they sell, but may not always act in the best interests of their clients.
To avoid confusion, it is important for consumers to ask their financial professionals about their fiduciary status and any potential conflicts of interest. Consumers can also look for professionals who are certified financial planners or who have a fiduciary duty to their clients.
For example, brokers are typically held to the suitability standard, which means that they are only required to recommend investments that are suitable for their clients based on factors such as age, risk tolerance, and investment goals. They may also receive commissions or other incentives for recommending certain investments, which can create conflicts of interest.
Bankers, on the other hand, are not typically held to a fiduciary standard when selling financial products such as mortgages, credit cards, or personal loans. They are required to provide accurate and truthful information about their products, but are not legally obligated to act in the best interests of their clients.
Similarly, insurance agents may not be held to a fiduciary standard when selling insurance products. They are required to provide accurate information about the policies they sell, but may not always act in the best interests of their clients.
To avoid confusion, it is important for consumers to ask their financial professionals about their fiduciary status and any potential conflicts of interest. Consumers can also look for professionals who are certified financial planners or who have a fiduciary duty to their clients.
Fiduciary Wealth
Fiduciary Wealth is an independent Registered Investment Adviser that specializes in investments that have a history of creating wealth.
We serve investors seeking long-term wealth creation with
moderate to aggressive risk tolerance.*
We invest directly in securities rather than funds and packaged products. This is to reduce costs and provide greater transparancy.
We serve under the strict fiduciary standard of care.
*Investors with moderate to aggressive risk tolerance can withstand a decrease in account value and, most importantly, wait for a recovery.
We Manage a Concentrated Porfolio
A concentrated portfolio has several potential advantages, including:
Potentially higher returns: A concentrated portfolio allows investors to focus their investments on their highest-conviction ideas, which can potentially lead to higher returns if those ideas perform well. By investing in a limited number of securities or assets, investors can capitalize on their expertise and insights in those areas.
Greater control: With a concentrated portfolio, investors have greater control over their investments, as they are able to monitor and manage a smaller number of securities or assets. This can allow for more informed decision-making and quicker action when opportunities arise.
Lower transaction costs: Maintaining a concentrated portfolio may result in lower transaction costs, as fewer trades may be required to manage the portfolio.
Tax advantages: Concentrated portfolios may offer tax advantages, as gains in one asset can potentially offset losses in another, reducing overall tax liability.
Simplified management: A concentrated portfolio can be easier to manage than a diversified portfolio, as investors may have fewer securities or assets to monitor and track.
It's important to note that a concentrated portfolio also carries a higher degree of risk, as the investor is more exposed to the performance of a limited number of securities or assets. As such, a concentrated portfolio may not be suitable for all investors, and it's important to carefully consider one's investment objectives, risk tolerance, and investment horizon before pursuing this strategy.
Potentially higher returns: A concentrated portfolio allows investors to focus their investments on their highest-conviction ideas, which can potentially lead to higher returns if those ideas perform well. By investing in a limited number of securities or assets, investors can capitalize on their expertise and insights in those areas.
Greater control: With a concentrated portfolio, investors have greater control over their investments, as they are able to monitor and manage a smaller number of securities or assets. This can allow for more informed decision-making and quicker action when opportunities arise.
Lower transaction costs: Maintaining a concentrated portfolio may result in lower transaction costs, as fewer trades may be required to manage the portfolio.
Tax advantages: Concentrated portfolios may offer tax advantages, as gains in one asset can potentially offset losses in another, reducing overall tax liability.
Simplified management: A concentrated portfolio can be easier to manage than a diversified portfolio, as investors may have fewer securities or assets to monitor and track.
It's important to note that a concentrated portfolio also carries a higher degree of risk, as the investor is more exposed to the performance of a limited number of securities or assets. As such, a concentrated portfolio may not be suitable for all investors, and it's important to carefully consider one's investment objectives, risk tolerance, and investment horizon before pursuing this strategy.
“Do not take yearly results too seriously. Instead, focus on four or five-year averages.”
— Warren Buffett
— Warren Buffett
Fiduciary Wealth pledges to:
Always place your interests first.
Remain independent from any
bank, broker or insurance company.
Provide fee-only advice and not be influenced by
commissions, sales contests or bonuses.
Be completely transparent about your investments, costs and terms.
Use an independent third party to account for your savings.
Never take possession of any client securities or money.
