Thanks to the digital age and constant technological advancements, investments have become more accessible to the general public. With more people interested in building funds for the future, many are looking for new opportunities to help their money grow.
With the rise of convenient investment opportunities, it can be hard to distinguish the professionals. While you may be capable of making your own investments, the guidance of an experienced advisor may be beneficial.
What is a Fiduciary?
A fiduciary financial advisor holds the highest ethical standards and is committed to helping clients reach their financial goals and putting their interests first before their own. (Of course there are no guarantees)
A fiduciary has five key duties that they should follow:
- They must serve their clients’ best interest;
- They must always act in good faith by utilizing their skills and judgment;
- They must be transparent and honest, avoiding and disclosing potential conflicts of interest;
- They must share all material, critical facts
- They must avoid conflict of interest
Why is Having a Fiduciary Necessary in 2021?
The stock market can be incredibly unpredictable; just take a look at what happened in 2020. If you followed the market in 2020, you’d see the difference in investing in stocks in late March compared to how it was at the end of last year.
When handling a volatile market, it’s best to deploy a financial strategy that will aim to protect and grow your portfolio.
A financial advisor can create a financial plan that considers weathering periods of market volatility while working toward achieving your goals. They’ll keep your best interest in mind when making their recommendations and the choices you make.
The Bottom Line: Having a Fiduciary Financial Advisor can be very Helpful
If you’re looking to work with a professional in helping you manage your finances and to help reach your goals, it might serve you to work with a fiduciary financial advisor. .
Disclaimer: “This article is limited to providing general information about financial services and access to traditional investment-related information, general investing publications, and the like. Nothing in this article is a solicitation to transact in securities, or to provide personalized investment advice. The advisor’s professional designation, certification, education, degree, or license is not a guarantee of satisfaction or results should a client engage the advisor. All investments involve risk of loss, different types of investments involve differing levels of risk, and there is no assurance that the future performance of any investment will be profitable or match any prior performance.”