As a financial advisor, being a fiduciary means you must always act in your client's best interest, which is a legal obligation. This is important because clients trust their advisors to help them achieve their financial goals, and they deserve to know that their interests come first. A fiduciary's responsibility ensures that advisors are accountable for their actions and that clients have recourse if they believe their advisor has acted inappropriately.
However, not all financial advisors are fiduciaries. Some are held to a lower standard of care known as the suitability standard. This only requires them to make recommendations that are "suitable" for their clients, rather than necessarily in their best interest. This can lead to conflicts of interest and a lack of transparency, which can ultimately harm clients.
As a fiduciary, it's important to always be transparent about your compensation, investment philosophy, and any conflicts of interest that may arise. It's also important to stay up-to-date on industry regulations and best practices and to always act with integrity and professionalism.
Ultimately, being a fiduciary means putting clients first and earning their trust through transparency, honesty, and a commitment to their financial well-being. Financial advisors who do this can build long-term relationships with their clients and help them achieve their financial goals with confidence.
From the beginning, Vernon Management Group believed that clients' needs should always come before our own. That is why we are a fiduciary and fee-only investment advisory firm.
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