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Fiduciary – a fancy-sounding buzzword that is often thrown around in the financial advising industry. From the Latin origin of the work “fidere” meaning “to trust”, this word highlights the proper nature of relationship between the advisor and the client. The client put their trust in the advisor, and the advisor, having minimized the possible conflicts of interest between them and their clients, works in a capacity of solely what is best for the client. Meaning the advisor provides advice and implements the advice (through an existing Wealth Management agreement) for the client that is in their best interest.

It is the highest standard of care in U.S. law, demanding that a professional (the “fiduciary”) must act solely in the best financial interests of the person they serve (the “beneficiary” or “client”), even if it means acting against their own self-interest. This lets the client sleep well at night, knowing that the advisor is sitting on the same side of the table as them, not using the clients to peddle their own products that warn them a hefty fee.

The first meeting – a free consultation lasting 30-45 minutes. This is where everyone starts. A block of time to hear the prospect’s goals, past, current situation, fears and wishes for themselves and their families. The prospect is focused on laying out as much of the financial picture as possible, highlighting pain points, questions, and goals. The advisor is focused on understanding the prospects’ point of view and identifying the correct engagement to meet the client’s needs: ongoing Wealth Management Agreement, 1-off project service, or hourly ongoing work. After the meeting, 1 of 4 recommendations is given by the advisor for the prospect to move forward with: 1 – Financial Review as a stand-alone service (full check under the prospect’s financial hood) or as a leeway into ongoing Wealth Management; 2 – 1-off project recommendation (to complete something specific); 3 – ongoing hourly service (to recommend, implement, monitor and correct the progress of a specific project); 4 – recommend another party or professional that would suit the prospect’s needs better (often for a nuanced or overly complicated one-off issued that would be better-off being handled by more niche professionals of those fields).

The Financial Plan is a living, breathing document that can, and should be changed as client’s needs, wishes, or circumstances change over time. We review this every year, in addition to every time the client has a new development in their lives that impacts them in a meaningful way. This is broad range of events – from new position at work, new home, vehicle, children’s age, inheritance, etc.

The greatest long-term piece of mind for clients and their families is the ongoing Wealth Management Agreement. With the fiduciary obligation in place, the client places their trust in the advisor, the goals of the advisor and the client are aligned, and peace of mind is achieved, knowing that your advisor always has your best interests in mind.

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