{"id":7513,"date":"2016-06-27T06:03:11","date_gmt":"2016-06-27T13:03:11","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=7513"},"modified":"2016-06-27T06:03:11","modified_gmt":"2016-06-27T13:03:11","slug":"why-the-fiduciary-standard-is-important","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/","title":{"rendered":"Why the Fiduciary Standard is Important to You!"},"content":{"rendered":"

President Harry Truman quoted \u201cIf you can\u2019t convince them, confuse them<\/a><\/span><\/strong>\u201d.\u00a0 In the financial planning world this statement has truth.\u00a0 Financial products are becoming more and more complex at the expense of everyday investors.\u00a0 Unfortunately, this complexity produces fees and conflicts of\u00a0interests\u00a0that are not disclosed to the client and this is\u00a0problematic to the planning process.\u00a0 Fees and an advisor’s potential conflicts of interests need to be fully disclosed to the client so he or she can determine if the product is truly in their best interest.\u00a0 The client’s best interest should always come first\u00a0and that is why the fiduciary standard<\/a><\/span><\/strong> is important.<\/p>\n

In Tony Robbin\u2019s book \u201cMoney: Master The Game<\/a><\/span><\/strong>\u201d, he explains the fiduciary standard in greater detail.\u00a0 The majority of the financial professionals are brokers that are affiliated with a broker\/dealer.\u00a0 Their\u00a0working obligation is first to their parent company to\u00a0produce a profit\u00a0thus allowing the client to suffer within the financial planning process.<\/p>\n

Financial professionals that are affiliated with a broker\/dealer are governed by the suitability standard<\/a><\/span><\/strong> and need to only recommend products that are suitable for the client instead of having to place the client’s best interest above their own.\u00a0 Commission based products drive this suitability standard and no client deserves a financial product that is just suitable for their situation.<\/p>\n

Working with a financial professional that is on your side legally is the best course of action for your financial plan. \u00a0An independent Registered Investment Advisor (RIA)\u00a0is legally required to place the client\u2019s needs ahead of their own.\u00a0 This legal requirement is called the fiduciary standard<\/a><\/span><\/strong>.\u00a0 However, there are loop holes to the fiduciary standard.\u00a0 If an advisor is working for a registered investment advisory firm but is still affiliated with a broker\/dealer then he or she is a fiduciary but is also a broker.\u00a0 In other words, they are dually registered<\/a><\/span><\/strong>.\u00a0 This type of advisor wears 2 hats.\u00a0 At times they are\u00a0fiduciaries and at times they are brokers, so the client does not always know when they are working in their best interest.<\/p>\n

This process can be very confusing.\u00a0 Remember, President Harry Truman\u2019s quote, \u201cIf you can\u2019t convince them, confuse them\u201d.<\/p>\n

How Can Investors Protect Themselves?\u00a0<\/strong><\/p>\n

Investors can protect themselves by working with an independent Registered Investment Advisor (RIA)\u00a0that is not affiliated with a broker\/dealer.\u00a0 An independent RIA is legally required to always do what is in the client\u2019s interest and uphold the fiduciary standard.\u00a0 This type\u00a0of\u00a0advisor\u00a0is required to practice fee transparency\u00a0and disclose any potential conflict of interests.\u00a0 Working with this type of advisor allows the client to determine if the benefits outweigh the costs and\u00a0see the\u00a0true value of the financial planning advice the advisor provides.\u00a0 In\u00a0addition, the client will know he or she is working with a financial professional\u00a0that places the client’s interest above their own.<\/p>\n

To learn more about Blake Fambrough, CFP\u00ae<\/a><\/span><\/strong> and how he works as an independent RIA with clients\u00a0view his Paladin Registry research report. \u00a0<\/a><\/span><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

President Harry Truman quoted \u201cIf you can\u2019t convince them, confuse them\u201d.\u00a0 In the financial planning world this statement has truth.\u00a0 Financial products are becoming more and more complex at the expense of everyday investors.\u00a0 Unfortunately, this complexity produces fees and conflicts of\u00a0interests\u00a0that are not disclosed to the client and this is\u00a0problematic to the planning process.\u00a0 Fees and an advisor’s potential conflicts of interests need to be fully disclosed to the<\/p>\n","protected":false},"author":77,"featured_media":7516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[325],"tags":[],"class_list":["post-7513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisors"],"yoast_head":"\nWhy the Fiduciary Standard is Important to You!<\/title>\n<meta name=\"description\" content=\"Working with a CFP\u00ae that must adhere to the fiduciary standard has your best interest at heart. 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He can search the entire investment universe of products.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/\" \/>\n<meta property=\"og:site_name\" content=\"Paladin Registry Blog\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/BlakeFambroughCFP?ref=hl\" \/>\n<meta property=\"article:published_time\" content=\"2016-06-27T13:03:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2016\/06\/fiduciary-standard.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"620\" \/>\n\t<meta property=\"og:image:height\" content=\"360\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Blake Fambrough\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Fambro1\" \/>\n<meta name=\"twitter:site\" content=\"@PaladinRegistry\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Blake Fambrough\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/\",\"name\":\"Why the Fiduciary Standard is Important to You!\",\"isPartOf\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/why-the-fiduciary-standard-is-important\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2016\/06\/fiduciary-standard.jpg\",\"datePublished\":\"2016-06-27T13:03:11+00:00\",\"dateModified\":\"2016-06-27T13:03:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/a0193f9940fa78de63f0d9e2419efc51\"},\"description\":\"Working with a CFP\u00ae that must adhere to the fiduciary standard has your best interest at heart. 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