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Fiduciary
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Pick Associates, LLC and its principal, Tammy E. Pick, MBA, CFP®, are held to a fiduciary standard in all aspects of the advisory relationship.
So what, exactly, is a fiduciary?
By definition, a fiduciary must act in the best interest of clients and must always put the interests of the client ahead of their own.
So, the obvious question is, aren’t all financial advisors held to the same standard? Isn’t that what you’d expect from anyone you'd hire to handle your finances? Sadly, fiduciary status isn’t an industry standard.
According to a recent report by NAPFA (The National Association of Personal Financial Advisors), more than 90% of financial advisors are paid (fully or partially) by commissions. That means that the advisor may have a reason to promote certain products and services to maximize their personal income. That’s not in anyone’s best interest (except, perhaps, the commissioned salesperson’s).
The majority of the financial industry is only held to a “suitability” standard. That means the advisor merely has to determine if a particular investment would be “suitable” for a client. Not necessarily a high standard to meet.
For example, owning 1,000 shares of Ford stock might be a “suitable” investment for a 50-year-old person. However, it may or may not be in the best interest of a client, given the personal circumstances and risk tolerance level of that particular person.
Pick Associates, LLC is only compensated by fees for its financial planning and investment management services. And, therefore, has no financial incentive to favor any particular investment.
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