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When seeking financial guidance, it helps to understand the standards behind the advice. Not all professionals offering financial services operate under the same expectations. One helpful question to ask is:

In what capacity is this advice being provided?

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What “Fiduciary” Refers To

The term “fiduciary” describes a specific legal and ethical standard that may apply in certain advisory relationships—such as when a financial professional offers investment management or financial planning services for a fee.

In these circumstances, fiduciaries are generally expected to:

• Act in the client’s best interest
• Disclose material conflicts of interest
• Exercise diligence, care, and loyalty

This standard does not apply in every situation and depends on the nature of the relationship.

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When the Relationship Isn’t Advisory

When a financial professional is not acting in an advisory capacity—such as in a brokerage or product-based relationship—a different standard is typically in place.

Under Regulation Best Interest (Reg BI), professionals are expected to:

• Provide recommendations that align with the client’s best interest
• Clearly disclose the nature of the relationship
• Mitigate or manage conflicts of interest where applicable

Reg BI replaced the older “suitability” standard for registered representatives and outlines regulatory expectations for conduct in non-advisory settings.

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Understanding the Difference

Standard Type	Context	Description
Fiduciary Duty	Advisory relationships (fee-based)	Legal obligation to act in the client’s best interest
Best Interest Obligation	Brokerage or product-based relationships	Regulatory expectation under Reg BI to prioritize client interest

Both frameworks are intended to promote client-focused recommendations, though they differ in how obligations are defined and enforced.

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Application in Practice

Some professionals operate under both advisory and non-advisory models. The applicable standard depends on the service being provided.

For example:

• A fiduciary standard may apply during financial planning or investment management.
• A regulatory best interest obligation may apply when recommending a brokerage product or insurance solution.

Being aware of the context helps clarify how recommendations are evaluated and disclosed.

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Why This May Matter

For some individuals, working with someone in a fiduciary role may align with their preferences. Others may prioritize specific product access or fee structures that exist under different types of relationships.

Understanding which standard applies makes it easier to:

• Ask informed questions
• Clarify the scope of the relationship
• Choose a service model that fits your goals

No single standard is inherently better in every situation. The key is transparency and alignment with your needs.

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Final Thoughts

When discussing financial recommendations, consider asking:

• Are you acting as a fiduciary in this situation?
• What standard applies to this advice?
• How are you compensated for this recommendation?

These questions can help you make informed decisions about your financial relationships and the guidance you receive.

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This content is provided for educational purposes only and does not constitute legal, tax, or investment advice. Standards may vary depending on services and licensing.

The idea of meeting with a financial advisor can be intimidating. You might worry about being judged, pressured into buying something, or confused by complicated jargon. It shouldn’t be that way.

Your first meeting should be a comfortable, no-pressure conversation focused entirely on you. The goal isn’t to make a sale; it’s to see if we’re a good fit to work together.

Here’s what you can expect from an introductory call with me:

1. We’ll Talk About You: The entire conversation will revolve around your goals, your concerns, and what you want your future to look like.
2. I’ll Ask Questions: I will ask thought-provoking questions about your financial life to understand the big picture.
3. There is No Pitch: This meeting is about discovery. You will not be pressured to make any decisions or purchase any products.
4. You’ll Leave with Clarity: You will walk away with a clearer picture of where you are today and an understanding of what the next steps could look like if you choose to move forward with me.

The first step is always the hardest, but it’s just a conversation.

There’s a common misconception that you need to be “rich” to work with a financial advisor. Many people wait until they’ve accumulated significant wealth before seeking guidance, but the truth is, a good plan can be most impactful when you start early.

You don’t need a massive portfolio to benefit from financial planning. You just need goals.

Consider working with an advisor if you’re experiencing a major life event or asking yourself these questions:

• How can we get our household spending organized?
• Are we saving enough for a down payment on a house?
• How do we balance saving for retirement with paying for our kids’ college?
• I’m a small business owner—how do I separate my personal and business finances?

Financial planning is about creating a roadmap for your life, no matter your current income level. A good plan built today is the foundation for the wealth you hope to build tomorrow.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

One of a client’s biggest concerns when seeking financial guidance is often one of the most confusing: “How much is this going to cost?” The world of advisor fees can seem complicated, but it doesn’t have to be. The most important thing is that you feel confident and clear about how your advisor is compensated before you ever begin.

This post will break down the common ways advisors are paid and explain my own approach to transparency.

Three Common Fee Models

In the financial industry, you’ll generally find three ways advisors are paid:

1. Commission-Based: In this model, an advisor earns a fee, known as a commission, for facilitating a specific transaction. This could be a fee for buying or selling a security (like a stock or bond), which may be paid by the client as a separate transaction cost. It can also refer to compensation paid by a third-party, such as an insurance company, when one of their products is sold.
2. Fee-Only: The advisor charges a direct fee for their services, such as a flat fee for creating a financial plan or a percentage of the assets they manage for you (AUM). They do not earn commissions because they do not offer commission based product.
3. Fee-Based: This is a hybrid model where an advisor may charge fees for planning and management, and also earn commissions on certain products.

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My Approach: 100% Transparency

To ensure clarity and to best serve my clients’ diverse needs, I operate on a “Fee-Based” model. This means my compensation comes from one of three places, depending entirely on the services you need. I will always explain this clearly to you before we begin.

• For Comprehensive Financial Planning: I charge a flat annual fee for the creation and maintenance of your in-depth financial plan. This allows me to provide objective advice across all areas of your financial life. This fee typically ranges from $1,500 to $5,000 per year, based on your specific situation.
• For Ongoing Investment Management: For clients who would like me to manage their investment portfolio on an ongoing basis, I charge a simple 1% annual fee based on the assets I am managing.
• For Insurance Products: If your plan requires an insurance product, I am paid a commission directly by the insurance company. Your only cost is your regular premium, and this does not change whether you use me as your agent or go elsewhere.

The Bottom Line

No matter who you choose to work with, make sure you fully understand the costs before moving forward.

If you’d like to talk more about your specific situation, please feel free to schedule a no-cost, no-pressure introductory call.