When looking for financial advisors in the Seattle area, you may be overwhelmed by your options. There are countless financial advisors, financial planners, and wealth managers offering up advice and trying to sell you on their investment services. However, when it comes to managing your finances as an affluent investor, it is in your best interest to work with a fiduciary advisor.
This is because a fiduciary financial advisor is legally obligated to put their client’s financial interests above their own. Other financial advisors who are not fiduciaries are NOT legally required to act solely in their client’s best financial interests.
Here at Olympic Wealth Management, Eric Cumley, CFP® serves in the role of a fiduciary. This means Eric’s primary legal duty is to place the interests of Olympic’s clients above his own at all times. Read on to learn more about the importance of working with a fiduciary financial advisor.
A fiduciary refers to a legally binding relationship in which one person is entrusted with the responsibility of acting in the best interest of another person. In the world of finance, a fiduciary is responsible for handling the assets of another person and making financial decisions in their best interest.
The main difference between a financial advisor and a fiduciary financial advisor comes down to the voluntary disclosure of all facts vital to a client’s investment decisions, especially concerning fees.
For example, if two investment products offer a similar risk and return profile—but one costs less than the other—the fiduciary advisor is legally obligated to recommend the lower-cost option. By contrast, there is no legal requirement for non-fiduciary advisors to do this.
In fact, many financial advisors who work for banks and brokerage firms are actually known as registered representatives. Unlike fiduciaries, registered reps operate according to what is known as the suitability standard.
Under the suitability standard, the primary duty of a registered rep is to their employer and the company’s revenue goals, not to the interests of the client. This is a less stringent standard than the one imposed on a fiduciary, and can result in conflicts of interest or hidden agendas in regard to financial advice given.
There are several reasons why working with a fiduciary financial advisor in Seattle is the best choice for your financial needs:
Many fiduciaries do not receive a commission on the sale of investment vehicles or products. Thus, your financial advisor will only recommend investments they truly believe are in your best interest and aligned with your financial goals.
The fact that none of your financial advisor's advice is based upon the sale of investment products or receiving a commission builds mutual trust between you and them.
The peace of mind that your financial advisor provides you with accurate, unbiased advice is priceless. With a fiduciary, you can rest assured that your advisor's guidance is unclouded by personal interests or financial gain.
Since a fiduciary has a legal duty to act out of your best financial interests, your advisor will take the time to understand your background, financial goals, risk tolerance, and investment timeline in order to serve you best.
If you choose to work with our fiduciary financial advisor Eric Cumley, CFP® here’s how you can expect him to go above and beyond for you: