what is a fiduciary

A fiduciary is someone who is legally and ethically obligated to act in the best interests of another person, putting their client's needs before their own. They are often responsible for managing money or property on behalf of their client.

Here are some key points about fiduciaries:

• Duty of care: Fiduciaries have a high duty of care, meaning they must act with prudence and avoid making any decisions that could harm their client financially.
• Loyalty: Fiduciaries cannot put their own interests before their client's interests. They must avoid conflicts of interest and disclose any potential conflicts to their client.
• Confidentiality: Fiduciaries must keep their client's information confidential.

Some common examples of fiduciaries include:

• Financial advisors: Some financial advisors, such as registered investment advisors and certified financial planners, are legally bound to act as fiduciaries.
• Attorneys: Lawyers have a fiduciary duty to their clients, which means they must act in their clients' best interests and keep their information confidential.
• Executors and trustees: These individuals are responsible for managing the assets of a deceased person or trust according to the terms of a will or trust document. They have a fiduciary duty to the beneficiaries of the estate or trust.

It's important to note that not all financial advisors are fiduciaries. Some advisors may be salespeople who are working in their own best interests, not yours. It's important to ask any financial advisor you work with whether they are a fiduciary and to understand what their obligations are to you.