When looking for a financial advisor or wealth management team, it’s not uncommon to prefer to work with a fiduciary. But how do you know if someone is a fiduciary and how can you find a good fiduciary financial advisor? In this post, we’ll cover the basics of finding a fiduciary financial advisor.
By Mike Rogers, AIF®, Founder and President of 360 Financial
Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.
At 360 Financial, you can speak with a fiduciary financial advisor to see how they can help you build and protect your wealth and prepare for the future.
7 Tips on How to Find a Good Fiduciary Financial Advisor
1. Verify Credentials
First and foremost, look for advisors with respected certifications such as CFP® (Certified Financial Planner), CFA (Chartered Financial Analyst), or CPWA® (Certified Private Wealth Advisor), indicating they’ve met rigorous professional standards. At 360, we have CFPs, AIFs, and CPWAs who can help you with your wealth management needs.
Look for:
CFPs
CFAs
CPWAs
AIFs
2. Utilize Financial Regulatory Websites
Use resources like the SEC’s Investment Adviser Public Disclosure (IAPD) website and FINRA’s BrokerCheck to confirm registration status and uncover any past disciplinary actions.
3. Seek Personalized Referrals
Ask high-net-worth acquaintances or business associates for recommendations, as they’re likely to know advisors experienced in handling substantial assets.
4. Ensure Complete Fiduciary Commitment
During your first call, ask advisors if they’re committed to acting as a fiduciary across all services and inquire about their approach to conflicts of interest.
5. Understand Fee Structures
Prefer advisors with transparent costs. A fee-based model based on a percentage of assets under management will prevent conflicts of interest because you and your advisor will be on the “same side of the table.”
However, all fiduciaries must work in your best interest at all times. So when you have a fiduciary financial advisor, you don’t need to worry about being sold packaged products that aren’t in your best interest. This is in contrast to some firms or big banks where you may find that you’re being sold mutual funds that have hidden fees and are not in your best interest.
6. Evaluate Communication and Compatibility
Your advisor should offer clear, consistent communication and show a willingness to understand your unique financial objectives, ensuring a solid, long-term relationship.
7. Assess Depth of Services
Depending on your investable assets, ensure potential advisors offer a comprehensive range of services, including estate planning, tax strategies, financial planning, legacy planning, and philanthropic planning. They are all crucial for wealth management if you have a high net worth.
Ask about:
estate planning
tax strategies
financial planning
legacy planning
philanthropic planning
Fiduciary advisors with appropriate qualifications and certifications have demonstrated a high level of competency, education, and ethics. When you work with a fiduciary financial advisor you can have confidence that they’re equipped to make decisions in your best financial interest.
Common Questions About How to Find a Good Fiduciary Financial Advisor
Is a fiduciary financial advisor worth it?
Yes, a fiduciary financial advisor is worth it as they are legally obligated to act in your best interest, potentially preventing costly conflicts of interest and guiding your investments responsibly.
What is the downside of using a fiduciary?
The downside of using a fiduciary includes possibly higher fees due to their comprehensive advice model and a sometimes narrower range of products due to their obligation to only recommend the best options for you.
Why should I consider working with a fiduciary advisor?
You should consider working with a fiduciary advisor because they provide unbiased, client-first advice and are committed to transparency and high ethical standards, ensuring your wealth is managed with utmost integrity.
What qualifications and certifications should I look for in a fiduciary advisor?
In a fiduciary advisor, look for qualifications and certifications such as CFP® (Certified Financial Planner), CFA (Chartered Financial Analyst), or CPWA® (Certified Private Wealth Advisor), which indicate advanced expertise and adherence to stringent ethical guidelines.
Are there any specific questions I should ask potential advisors during interviews?
During interviews, ask potential advisors about their fiduciary commitment, fee structure, conflict-of-interest scenarios, investment philosophy, and experience with clients in similar financial situations to yours.
What are some warning signs of a potentially unreliable financial advisor?
Warning signs of an unreliable financial advisor include lack of transparency about fees or fiduciary status, making exaggerated claims about investment returns, pressuring client decisions, absence of reputable certifications, or having a disciplinary history with financial regulatory bodies.
Connect with a Fiduciary Financial Advisor
If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial. 360 Financial is one of Minnesota’s best independent wealth management firms. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch.
About the Author
Mike Rogers
Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters.
In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”
Schedule a Call
At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.
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This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
