WCI #282: Fiduciary Financial Advisors

Sep 29, 2022

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INSIGHT

What Fiduciary Means

A fiduciary puts your needs ahead of their own and is like a Hippocratic oath for advisors.
Registered investment advisers, lawyers, and accountants typically owe this legal duty to clients.

INSIGHT

Fiduciary vs Suitability Standard

Many people who call themselves financial advisors do not owe a fiduciary duty and instead operate under a lower suitability standard.
Insurance agents and commissioned salespeople commonly lack a legal fiduciary obligation to clients.

ADVICE

Get Fiduciary Duty In Writing

Ask prospective advisors to confirm in writing that they will act as your fiduciary before engaging them.
Expect fiduciary duty from anyone you plan to pay substantial fees to for investment management.

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In this episode Dr Dahle talks about fiduciaries and financial advisors. The best way to think of the word fiduciary is to think of it as a person that puts your needs ahead of their needs. There are some financial professionals that have a legal fiduciary duty to you but there are a lot of people out there who call themselves financial advisors who don't actually have a fiduciary duty to you. We discuss what you can do when someone does not act as a fiduciary. We also answer your questions about dollar cost averaging, state specific municipal bond funds, and TSPs. See full show notes here: https://www.whitecoatinvestor.com/classic-blog/

I estimate that 80% of doctors need, want, and should use a financial advisor and/or an investment manager. Some investment gurus such as Dr. William Bernstein think my estimate is way too low. At any rate, if you want to use an advisor temporarily or for your entire life, there is no reason to feel guilty about it—just make sure you are getting good advice at a fair price. If you need help updating your financial plan or just getting one in place, check out our list of recommended financial advisors at https://www.whitecoatinvestor.com/financial-advisors. You can do this and The White Coat Investor can help.

The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs for specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you!

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