Fiduciary
FARAH Private Wealth Management is a Fiduciary
Fiduciary Defined
At its most basic level, a Fiduciary is a person or firm who acts on behalf of its clients and is required to put their best interests first. RIAs, Register Investment Advisors are required to register with the Securities and Exchange Commission (SEC) or the states in which they do business in, depending on how much in assets they manage. They are held to the fiduciary standard to act in the client’s best interest.
However, not everyone providing financial advice is a fiduciary. Brokers, for example are generally not held to the fiduciary standard and often call themselves “advisors” or “financial advisors”. Brokers often earn sales commissions for the financial products they sell to investors. Because of this, some brokers may have incentives to recommend products that aren’t necessarily in your best interest, but may earn them a larger sales commission.
How to Choose the Right Investment Professional
Some investors try to find their investment manager by hiring an Registered Investment Adviser Firm held to the fiduciary standard. This is a good place to start, because these types of advisers are obligated to act in your best interests. However, there are other important aspects of a good adviser to keep in mind and the best one for you likely depends on your personal situation and preferences.
To make sure a financial professional is a good fit for you, you should ask the right questions. Some important topics to cover are an adviser’s investment philosophies, sources of compensation and any potential conflicts of interest. Proper firm structure enables advisers to act on their values, and includes factors like fee arrangements and investment strategies geared to meeting your needs. If your adviser sells commission-based products or values their bottom line over client goals, they may not always serve your needs first.
Farah Private Wealth Management Approach
Farah Private Wealth Management manages your investments based on your personal goals and our forward-looking views of the market. Our dynamic, flexible approach to investing positions portfolios to benefit from opportunities we see in the global market. As we manage your portfolio, we educate you along the way so you have the knowledge to understand what’s happening in your portfolio and why. We find this transparency helps clients feel more comfortable with their investments.
Contact Farah Private Wealth Management Today
By working with a fiduciary like Farah Private Wealth Management, you can be assured you’re getting investment advice from a firm that has a legal duty to disclose conflicts of interest and put your interests ahead of its own.