Have a vision for your financial future? Choosing the right fiduciary advisor is one of the most important steps to make it a reality.
In this short video from The Exchange, we sit down and walk you through what to look for when selecting an advisor.
You’ll learn what being a fiduciary really means, the key questions to ask, and a few red flags to watch out for—without the jargon. Watch now.
Transcript
A Unique Perspective on Hidden Value
A friend of mine invited me over to his office that he had just remodeled. They installed a bookcase, and inside one of the books there was a magnet that opened up a hidden compartment leading to a speakeasy. It was a fully stocked bar with high-end finishes and nostalgic photos. It was one of the most custom and impressive rooms you could imagine—or in this case, never see.
Why Choosing a Fiduciary Advisor Matters
Selecting a fiduciary advisor is one of the most important financial decisions you can make. Before starting your search, it helps to have a clear plan in place.
Welcome to The Exchange, where we cover financial topics that matter most to you. I’m Adam Brooks with Able Financial Group, and today we’re discussing how to choose a fiduciary advisor.
What Fiduciary Responsibility Means in Financial Planning
Fiduciary responsibility is the highest standard of care in the financial industry. Fiduciaries have a legal and ethical obligation to put their clients’ interests first.
They work to avoid conflicts of interest when possible. If conflicts arise, they disclose them and obtain informed consent. This role also affects the types of investments they recommend, how they are compensated, and any outside business activities they may have.
Questions to Ask Before Hiring a Financial Advisor
Start by asking whether the advisor holds the CERTIFIED FINANCIAL PLANNER®, or CFP® designation. CFP® professionals complete advanced education and demonstrate commitment to their field.
It’s also helpful to work with someone at a Registered Investment Advisor firm, where the fiduciary standard applies.
Experience is another factor to consider. Many people prefer working with an advisor who has at least five years of experience.
Ask about their investment philosophy and how they build financial plans. This helps you understand whether your approach aligns with theirs.
You can also ask how often you will meet and how frequently they will communicate with you. Reviewing their fee structure is another important step.
Financial Advisor Red Flags to Watch For
Recognizing red flags early can help you avoid unnecessary costs and complications.
Proprietary investments can present conflicts of interest. Hidden or unclear fees are another concern to watch for.
Some firms operate under a “best interest” standard, which is different from a fiduciary standard. Understanding this distinction can help when comparing advisors.
Why Arizona-Specific Financial Knowledge Matters
Working with an advisor who understands your state’s financial landscape can be valuable.
Arizona offers tax credits for private school tuition and contributions to qualifying charitable organizations. An advisor familiar with these opportunities can incorporate them into a financial plan.
Arizona is also a community property state, which can affect financial decisions during marriage or divorce.
About Able Financial Group
At Able Financial Group, fiduciary responsibility is a core part of how we work. Our team collaborates to provide a detailed and disciplined onboarding process designed to understand each client’s situation from the start.
If you’re interested in learning more about our team and how we work with clients, you can call 480-258-6104 or email adam@abelfinancialgroup.com.
Thanks for joining us on The Exchange. If you’d like to continue the conversation, feel free to reach out.
