Comments on: What Is a Fiduciary and Why Does It Matter? http://www.providentplan.com/1388/what-is-a-fiduciary-and-why-does-it-matter/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-a-fiduciary-and-why-does-it-matter Personal Finance for Life in the Kingdom Tue, 07 Feb 2012 16:59:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Paul Williams http://www.providentplan.com/1388/what-is-a-fiduciary-and-why-does-it-matter/#comment-6162 Paul Williams Wed, 17 Feb 2010 04:57:31 +0000 http://www.providentplan.com/?p=1388#comment-6162 Thanks for taking the time to comment, Adam! It's always great to see new people comment on the site. You're right that it can be difficult to tell if a fiduciary is acting in your best interest. I think it's important to remember something J.D. Roth at Get Rich Slowly says often, "No one cares more about your money than you." You have to take the responsibility to keep on top of your advisors/fiduciaries to make sure they're doing what they should. This requires you to become educated as well. You don't have to know everything they do or do everything for yourself, but you should learn enough to know when you're being taken for a ride. Thanks for taking the time to comment, Adam! It’s always great to see new people comment on the site.

You’re right that it can be difficult to tell if a fiduciary is acting in your best interest. I think it’s important to remember something J.D. Roth at Get Rich Slowly says often, “No one cares more about your money than you.” You have to take the responsibility to keep on top of your advisors/fiduciaries to make sure they’re doing what they should. This requires you to become educated as well. You don’t have to know everything they do or do everything for yourself, but you should learn enough to know when you’re being taken for a ride.

]]> By: Adam@RabbitFunds http://www.providentplan.com/1388/what-is-a-fiduciary-and-why-does-it-matter/#comment-6161 Adam@RabbitFunds Wed, 17 Feb 2010 04:22:36 +0000 http://www.providentplan.com/?p=1388#comment-6161 I never realized that there is a clear delineation between a fiduciary and advisor; though, it makes perfect sense. The problem that I see is determining whether or not a fiduciary is actually acting in your best interest. For example, the trustee of a trust could literally take years to slow create a personal advantage through methods such as undue influence that would essentially go unseen and be very difficult to later prove. I never realized that there is a clear delineation between a fiduciary and advisor; though, it makes perfect sense. The problem that I see is determining whether or not a fiduciary is actually acting in your best interest. For example, the trustee of a trust could literally take years to slow create a personal advantage through methods such as undue influence that would essentially go unseen and be very difficult to later prove.

]]> By: Paul Williams http://www.providentplan.com/1388/what-is-a-fiduciary-and-why-does-it-matter/#comment-6133 Paul Williams Thu, 11 Feb 2010 16:28:51 +0000 http://www.providentplan.com/?p=1388#comment-6133 Great point, Eric! It can get extremely confusing. If your advisor (financial, CPA, or attorney) is acting in multiple capacities (like the CPA selling insurance), then you have to stay on top of him and ask if he's acting in a fiduciary capacity for each transaction. I wish it were more clear cut, but it's not. So consumers should take that as a cue to be on their guard at all times. Be careful whom you trust. Ask plenty of questions. Don't be afraid to ask your advisor if he's putting your best interests first and get it in writing. Great point, Eric! It can get extremely confusing. If your advisor (financial, CPA, or attorney) is acting in multiple capacities (like the CPA selling insurance), then you have to stay on top of him and ask if he’s acting in a fiduciary capacity for each transaction. I wish it were more clear cut, but it’s not.

So consumers should take that as a cue to be on their guard at all times. Be careful whom you trust. Ask plenty of questions. Don’t be afraid to ask your advisor if he’s putting your best interests first and get it in writing.

]]> By: Eric http://www.providentplan.com/1388/what-is-a-fiduciary-and-why-does-it-matter/#comment-6132 Eric Thu, 11 Feb 2010 16:14:59 +0000 http://www.providentplan.com/?p=1388#comment-6132 Doesn't it get even more confusing for the consumer when an advisor works for a parent company that owns both a broker-dealer and an RIA?!? Moreover, I'm seeing more and more CPAs who go out and get insurance licensed to generate supplemental income as captive agents...or attorneys who regularly up-sell to more expensive trust packages when they aren't really necessary. There is no clear line in the sand that is for sure. Doesn’t it get even more confusing for the consumer when an advisor works for a parent company that owns both a broker-dealer and an RIA?!? Moreover, I’m seeing more and more CPAs who go out and get insurance licensed to generate supplemental income as captive agents…or attorneys who regularly up-sell to more expensive trust packages when they aren’t really necessary. There is no clear line in the sand that is for sure.

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