What is a Fiduciary?

 What is a Fiduciary?

At Shoreline Financial Advisors, we are a fiduciary. We encourage you to use this page to learn more about the benefits of working with a fiduciary.

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According to Investopedia, “a fiduciary is a person or organization that owes to another the duties of good faith and trust. The highest legal duty of one party to another, it also involves being bound ethically to act in the other’s best interests.” Essentially, a fiduciary is required to hold their clients’ interest ahead of their own.
– A fiduciary is required to act in your best interest. A financial advisor who is required by law to act as a fiduciary cannot accept commissions, bonuses, or other incentive compensation in exchange for selling investment or insurance products. This is not to say that there are not some bad apples in every barrel, but it does improve your chances of a successful investment experience.
– Are you a fiduciary?
– Will you sign a fiduciary contract?
– Can you buy any investment for our portfolio? Specifically, can you buy Vanguard funds? DFA funds?
– How much do you charge? Will you put that in writing?
– Maybe, maybe not. Ask the questions listed above.
– Also, did they recommend a new mortgage through their bank? Did they recommend checking accounts?  Financial advisors who work for banks or brokerage firms are sometimes pressured to sell bank products, such as mortgages and bank accounts to receive bonus incentives.
– Are they using proprietary funds? They are probably branded under a different name.  Many banks and brokerage firms have created families of funds that have brand names different from the firms.

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