Partner with a Fiduciary Advisor

FI•DU•CI•AR•Y \DEFINITION\: A person legally appointed or authorized to manage assets for another person. The fiduciary manages the assets for the benefit of the other person, rather than for his or her own profit. A fiduciary stands in a special relation of trust, confidence, or responsibility in his obligations to others.

\USAGE\: A registered investment advisor, who is held to a “fiduciary standard,” looks after the assets of another person on that person’s behalf, is fully transparent, and is required to disclose any potential conflicts of interest. A registered investment advisor is a fiduciary advisor, by definition, legally bound and committed to working in their client’s best interests.

Successful Portfolios is a fiduciary advisor, as are all its licensed representatives. We encourage you to use the SEC’s Registered Investment Adviser Search tool to research us or any other financial advisor.

The Benefits of Working with a Fiduciary Advisor

More Investors are realizing the advantages of hiring a licensed fiduciary advisor for their financial planning, wealth management, and investment needs. Registered Investment Advisors (RIAs) are becoming more popular because they are legally committed to upholding a fiduciary standard, ensuring that they and their associated fiduciary advisors always prioritize their client’s best interests. In contrast to RIAs, brokerage firms (Broker-Dealers or BDs) and insurance agents or agencies may recommend less profitable or more expensive products driven by commission incentives. When seeking a fiduciary advisor, look for these service criteria and benefits:

Personalized Strategies: Your RIA should develop tailored financial plans in alignment with your distinct objectives rather than promoting one-size-fits-all financial products. A comprehensive understanding of your financial status forms the basis for appropriate decision-making.
Fee-Only Compensation: This compensation structure minimizes potential conflicts of interest and ensures fees are transparent, easily understood, and tied to assets under management or investment performance.
Wide Range of Investment Options: Your advisor should access a broad opportunity set of market-ready investment options, including individual stocks, bonds, low-cost index ETFs, and liquid alternative assets.
Regular Reviews and Communication: Advisors should continually monitor your investments, providing timely updates about key performance metrics, including risk and return analyses.
Experience and Credentials: Preference should be given to advisors with respected designations such as CFP (Certified Financial Planner) or CFA (Chartered Financial Analyst), indicating comprehensive training, rigorous testing, and adherence to high ethical standards.

Potential affiliations between RIAs and broker-dealers or insurance companies warrant investigation as “hybrid advisors” may switch between fiduciary and non-fiduciary roles, potentially causing conflicts of interest.

Successful Portfolios operates as an independent RIA firm with no affiliate companies that might be non-fiduciary. We aim to deliver unconflicted expert guidance and personalized advice to help you grow and protect your wealth.

Our five-star rating from investor.com, a reputable resource for advisor assessments, underscores our favorable profile for investors seeking a proven, trusted advisor.

The diligence required in choosing the right fiduciary RIA can pay off significantly in terms of your financial growth and security.

For further assistance, contact the specialists at Successful Portfolios today. You may use the provided form or reach us directly by calling or texting at (727) 744-3614.

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More about Fiduciary Advisors in the Context of an RIA, BD, or Insurance Agency

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their client’s interests ahead of their own, with a duty to preserve good faith and trust. This role requires being bound both legally and ethically to act in the other’s best interest.

In the context of the Securities and Exchange Commission (SEC) regulation of Registered Investment Advisors (RIAs) and Broker-Dealers (BDs), the fiduciary standard differs. RIAs are held to a fiduciary standard, meaning a client’s best interest must come first. This includes a duty of loyalty, a duty of care, and a duty to avoid conflicts of interest. On the other hand, BDs are primarily regulated under the Securities Act of 1933 and the Securities and Exchange Act, and they are held to a suitability standard, which doesn’t require putting the client’s interests ahead of their own.

The SEC has been advocating for a uniform fiduciary standard for both BDs and RIAs, recognizing that a fiduciary duty that is identical in principle can be applied differently in different circumstances and to different business models.

In the context of state insurance industry regulation, fiduciary duties also apply. State insurance regulations cover all annuity products, not just those purchased within Employee Retirement Income Security Act (ERISA) plans. The National Association of Insurance Commissioners (NAIC) has made significant revisions to its Suitability in Annuity Transactions Model Regulation, adopting a best interest standard more aligned with the fiduciary principle.

In summary, while the term “fiduciary” maintains its core meaning across different contexts, the specific duties and regulations associated with it can vary depending on the regulatory body and the nature of the financial services being provided.

Links for further reading:

https://www.nerdwallet.com/article/investing/fiduciary
https://www.investopedia.com/terms/f/fiduciary.asp
https://www.sec.gov/tm/iabd-staff-bulletin-conflicts-interest
https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/understanding-your-fiduciary-responsibilities-under-a-group-health-plan.pdf
https://smartasset.com/financial-advisor/what-is-fiduciary-financial-advisor
https://www.investopedia.com/updates/dol-fiduciary-rule/
https://www.consumerfinance.gov/ask-cfpb/what-is-a-fiduciary-en-1769/
https://www.federalregister.gov/documents/2016/04/08/2016-07924/definition-of-the-term-fiduciary-conflict-of-interest-rule-retirement-investment-advice
https://isb.idaho.gov/blog/regulation-best-interest-the-good-the-bad-and-the-ugly/
https://www.bankrate.com/investing/financial-advisors/what-is-a-fiduciary/