Roundup: What Does Fiduciary Mean to You?

The word, “fiduciary,” has probably never been spoken as much as it has over the past year. It has been debated in the halls of Congress and made its way through the airwaves of popular television programs. It has been exchanged in discussions between advisors and industry experts, and in conversations between everyday investors.

Somewhere along the way, “fiduciary” has taken on a life of its own — and its meaning has evolved, too. Most would agree that this new awareness around the term is largely due to the U.S. Department of Labor (DOL)’s investment fiduciary rule, the fate of which is, more or less, up for grabs yet again.

Up until this point, we have heard countless perspectives and opinions — from fiduciary supporters to stark opponents — on what the term means for the financial services industry and for clients. But what about financial professionals who already uphold the fiduciary standard of care? How do they define the word, “fiduciary”? We asked five advisors to weigh in:

What does the word fiduciary mean to you

Definition: “Advocate”

Jordan Mills

“To me, being a fiduciary means doing the right thing for my clients all of the time — not just when it’s convenient, or when the right thing for them is best for me, too. It means I am always on the ‘same side of the table’ as my clients.

In addition, being a fiduciary means being transparent about how I am compensated, as an advisor; and it also means I’m honest and open about what my services do and don’t include. I believe all of these considerations are necessary in order for a fiduciary investment advisor to build trust with his or her client, which is the foundation for any long-term relationship.”

Jordan Lochner Mills, CFP®, Senior Financial Advisor

Definition: “Listener”

Ryan McGuire“Being a fiduciary means spending considerable time listening to every client’s story. A successful and meaningful advisory relationship starts with understanding the key events and ideas that have permeated the client’s current stage of life, and where he or she would like to be down the road.

A fiduciary investment advisor uses that foundation to truly commit to the transparent management and well-being of the financial, personal and professional aspects of a client’s life. By keeping the focus on these areas, the recommendations fiduciaries make become more well-rounded and practical for each client.”

– Ryan McGuire, CFP®, Financial Advisor

Definition: “Thoughtful”

Noah Marell“To me, being a fiduciary means that my first, second and third thoughts are always going to be about the client. [My] clients ask good, smart questions, and the answers don’t always come easy. To bring clarity to a question, I always stop to consider what is very best for the client — not what is easiest or simplest for me, or what could pay the most.

If the answer an advisor gives doesn’t make sense or seems too complicated, clients should stop them to explain exactly how the recommendation benefits their unique situation, and why that is the best route forward. If your advisor can’t clearly articulate why they are making a recommendation, and why it is the best thing for you, that should be a warning sign.”

– Noah Marell, CFP®, Financial Advisor

Definition: “Selfless”

Benjamin Hayes“Fiduciary investment advisors put their clients’ interests ahead of their own; they are transparent about the advice they give and the fees they charge.

The way I see it, individuals and families have placed their trust in our team of advisors to give them honest, straightforward advice about their finances. We gladly accept this responsibility and our role as fiduciaries.”

– Benjamin Hayes, CFP®, MBA, Principal and Senior Financial Advisor

Definition: “Integrity”

Erika Young“‘Fiduciary is just a legal word that binds me to do what I already know and feel is right. By serving as a fiduciary to my clients, my agreements match my personal integrity. At my core, I believe in serving others. I don’t just apply this mindset to my clients’ financial lives; it’s a moral responsibility that I take very seriously, both personally and professionally.

Put simply, being a fiduciary is just an extension of who I am — it’s a part of my character that I’m proud to uphold not only on paper, but in every aspect of my life.”

– Erika Young, CRPS®, CPFA, AIF®, Principal and Director of Employer Plan Services

 

Learn more about what it means to be a fiduciary.

LEARN MORE

Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli LLP. Information pertaining to Hewins’ advisory operations, services and fees is set forth in Hewins’ current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at www.adviserinfo.sec.gov. The views expressed by the author are the author’s alone and do not necessarily represent the views of Hewins or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Hewins, and Hewins does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Hewins of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional.
OneBite Editorial Staff
OneBite Editorial Staff

OneBite® is a Top 50 Financial Advisor Blog powered by Hewins Financial Advisors. Founded in 2011, the digital magazine is dedicated to providing intelligent, in-depth coverage and analysis of the top financial and economic issues facing investors today.

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Roundup: What Does Fiduciary Mean to You?

time to read: 3 min