With tax season past, we’ve pivoted to broader personal finance topics.
Q: What is a fiduciary, and how can it help me with my finances?
A: A fiduciary is a person who is legally required to put your interests ahead of their own when providing advice or making recommendations.
This can be especially important when making major financial decisions.
Investments and retirement planning. Investment options can involve different fees, commissions and risks. A fiduciary is generally required to focus on what is in your best interest.
Insurance and financial products. Coverage options and costs can vary widely. A fiduciary is expected to evaluate your needs before recommending a product.
Why does this matter? The fiduciary standard exists to help ensure that advice begins with your goals and needs, not with a product to sell. In many cases, that means first asking whether a product is needed at all and whether lower-cost alternatives exist.
The bottom line: When seeking financial advice, consider whether the advisor is a certified financial planner professional. The certification requires the professional to put the client’s interests first when providing financial advice. The concept isn’t unique to financial advisers. Similar client-first obligations also apply to other professionals, including attorneys and certified public accountant.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
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