Have you ever read a financial article or blog post and put it down after reading the first paragraph because the terminology didn’t make sense? If so, you’re not alone. Many of you have probably heard the word “fiduciary” tossed around when it comes to your finances, but do you know what it means? More importantly, do you know what it means to you and your money?

What Is a Fiduciary Anyway?

A fiduciary is like a trustee, someone who is given and accepts the responsibility of managing assets for a person, usually a client. The primary duty of a fiduciary is to put your needs first and to give advice and recommendations that will benefit you. This duty protects you from conflicts of interest. For example, fiduciary duty prevents an advisor from making an investment with your money solely for a kickback commission. This standard includes providing guidance that is unbiased, is considered beneficial to you, and fees that are clear and upfront. This gives you confidence that your hard-earned money is in good hands.

Why Should You Work With a Fiduciary?

Let’s look at the benefits of fiduciary rules in more detail.

1.  Fiduciary Advisors Are Open and Transparent

Canadians spend billions of dollars in fees and commissions on an annual basis, not all of it warranted. Aside from the obvious goal of maximizing value for your money, working with a fiduciary will give you confidence that your advisor is working in your best interests rather than his/her own. As fiduciary rules become increasingly strict internationally, financial advisors will need to be up front about how they will help you invest. This means no more too-good-to-be-true sales pitches with hidden fees and convoluted fine print. Advisors will need to be transparent about the various options available to you.

2.  No More Conflicts of Interest

Fiduciary advisors are required to create the most sensible plan for each client, no matter what. To help you realize your dreams without potential conflicts of interest, Black Spruce Financial operates mainly on a fee-based framework, with the exception of the commission structure on some of the products we offer, such as insurance products. Our goal is to be transparent and to work in your best interests first.

3.  You Get to Call the Shots

The bottom line is that by working with an advisor who is held to fiduciary standards, you are empowered to make the best decisions for you and your finances. Clients have the power to ask questions and to demand the highest value for the service that advisors are providing. As a company in the financial world, we understand people’s reservations or even negative connotations towards the underlying motivations of some advisors. We want to assure you that you can trust in the fact that our relationship with you is built on integrity.

At Black Spruce Financial, we are, and have always been committed to providing you with the best advice we can give without any conflicts of interest. We only recommend solutions that we believe align with a client’s individual goals, and we adhere to the aim of creating unique financial strategies for each of you. We are required to act with undivided loyalty to you and provide complete transparency and disclosure when it comes to our compensation or investment approach.

We take pride in our transparency and objectivity. If you’re unsure about your current retirement strategies, haven’t re-evaluated your investments in several years, or are just interested in learning more about what it means to work with a fiduciary, we would love to sit down with you and talk through things. To set up a meeting, contact me at 416-553-5004 or gino@blacksprucefinancial.com.

About Gino

Gino Scialdone is a financial advisor and the owner of Black Spruce Financial, an independent wealth management firm serving independent business owners. Having grown up in a family business and owning a business himself, Gino has a unique understanding of the challenges and needs business owners face. Offering a comprehensive array of wealth management and financial planning services, he strives to provide sound and creative strategies that meet a business owner’s short and long-term needs. Based in Toronto, Gino serves clients throughout the greater Toronto area and southern Ontario. To learn more, connect with him on LinkedIn or visit www.blacksprucefinancial.com.