Hello, I’m Brett Carleton. President here at Heritage Wealth Management. I wanted to take a minute today and talk to you about what a fiduciary is. This has become a topic of conversation in media this past year as the US Department of labor has passed a new law requiring all financial advisers to act as a fiduciary with your retirement accounts. What this will require them to do is it will require all financial advisers when dealing with your retirement assets to disclose all conflicts of interests they have right up front at the beginning of the relationship. They should also share with you how they are compensated as well as any other incentive they might receive for placing you in these investments. The second big change is this will require them to make sure that these investments are appropriate for you today as well as monitor them into the future as your situation changes. What I suggest do you is if you have a financial advisor ask them if they are a fiduciary on not just your retirement accounts but all of your investment accounts. This new law only applies to retirement accounts. I would ask them – how they’re being compensated? Are there lower cost investment options or alternatives for them to put you in? Do they receive any other investments or incentives for the investments that you’re making.
If you would like to see a list of questions to ask your financial advisor or if you’re interviewing financial advisers, you can email us at Prosper@HeritagePlanners.com and we will send you a list of questions to ask your financial advisor or financial advisers if you are interviewing them as well as what exactly a fiduciary is.
Brett S. Carleton