Fiduciary Standard Oath for Financial Advisors

Financial advisors who commit to fee-only structures and join reputable organizations often take an oath to prioritize clients' interests over their own. This commitment to the fiduciary standard goes beyond government mandates. However, only a small percentage (less than 2%) of financial advisors adhere to this standard. Even within the fee-only structure, there can be confusion due to different compensation models, including hourly fees, fixed fees, retainers, or charging a percentage of assets under management. Understanding these cost structures and their pros and cons is essential for clients seeking financial advice.