Fiduciaries vs. Brokers -
Do YOU Know the Difference?
Choosing an advisor to help you manage your personal wealth is one of the most important decisions that you can make. Your decision and its residual effects can impact your life and lifestyle for decades, as well as the legacy that you leave for your family and loved ones or the charities and causes that you support.
Therefore, it's crucial to work with someone you can trust - someone who are dedicated to understanding and addressing YOUR specific individual goals and needs. Watch the video below before you make your decision on which type of advisor firm to use, and learn what the crucial differences between Fiduciaries and Brokers means to you.
THE FIVE FIDUCIARY RESPONSIBILITIES
1) PUT THE CLIENT'S BEST INTERESTS FIRST
2) ACT IN UTMOST GOOD FAITH
3) PROVIDE FULL AND FAIR DISCLOSURE OF ALL MATERIAL FACTS
4) DO NOT MISLEAD CLIENTS
5) EXPOSE ALL CONFLICTS OF INTEREST TO CLIENTS
In sum, a Fiduciary is someone who has a legal obligation to act on another person's best interest. A Broker is someone who facilitates a financial transaction between two parties, often receiving a one-time commission for their services. "Dually registered" advisors are both brokers and fiduciaries and may switch hats as needed, with little or no notice to a client.
The Securities and Exchange Commission (S.E.C.) is responsible for overseeing investment advisers. At Rainbow Retirement Planning, we are registered investment advisor representatives - not brokers - and as such, we are “fiduciaries” to our advisory clients...100% of the time. This means that we have a fundamental obligation to act in the best interests of our clients and to provide investment advice in our clients’ best interests.
Quite simply put: we owe our clients a duty of undivided loyalty and utmost good faith. When? To quote that '70's song: "Always and Forever."