In today’s financial landscape, the choices you make about who manages your wealth can significantly impact your future. That’s where understanding the concept of a fiduciary comes into play. But what exactly does it mean, and more importantly, how can it transform your financial journey?
Our latest podcast, “Fiduciary Advisors: Unveiling the Truth – Ironwood Financial” featuring the seasoned experts from Ironwood Financial, is a treasure trove of insights designed to do just that. Robin Dolezal, David Renzi, and Alex Pars dive deep into the essence of fiduciary responsibility and how it sets Ironwood Financial apart from other advisors. This discussion is not just about defining terms; it’s about unveiling a path to financial well-being that aligns with your best interests.
Why should you watch? Because knowledge is power, especially when it concerns your financial health. This video isn’t just a conversation; it’s a gateway to understanding how your financial advisor’s commitments can shape your investment results and peace of mind. By the end of this enlightening session, you’ll not only grasp the true meaning of having a fiduciary on your side but also how it can lead to more informed, and ultimately, more fruitful financial decisions.
Robin Dolezal: “Hello everyone. Welcome to another topic in our podcast series. My name is Robin Dolezal, and joining me are David Renzi and Alex Pars. We’re all part of the Ironwood Financial team. Today, we’re discussing the term ‘fiduciary’ and its significance in the financial advisory world.”
Alex Pars: “Fiduciary means always acting in the client’s best interest, above your own. It’s a foundational principle for selecting a financial advisor because it assures that the advisor is committed to your well-being.”
David Renzi: “Consider the difference between a fiduciary and a suitability standard. A fiduciary must try to do what’s best for you, while the latter only needs to meet a suitability threshold. This distinction can profoundly impact the advice and products you receive.”
Alex Pars: “Using the analogy of a gold-plated pen versus a regular pen, a fiduciary would recommend the pen that serves you best, regardless of their potential earnings.”
Robin Dolezal: “It’s essential that professionals, whether attorneys, CPAs, or financial advisors, operate as fiduciaries, prioritizing your best interests.”
David Renzi: “We had a client whose previous advisor, before retiring, filled her portfolio with commission-based products, locking her in for 10 years. This scenario underscores the importance of understanding how your advisor is compensated and whether they are acting as a fiduciary.”
Alex Pars: “While we are a fee-based firm, it’s crucial to ask your advisor if they are fee-based or fee-only, as this affects the potential for commissions. Transparency about fees and compensation is key.”
Robin Dolezal: “Even as a fee-based firm, we occasionally encounter situations where a commission-based product, like certain insurance policies, might be necessary. However, as fiduciaries, we are committed to transparency and will always disclose how we are compensated in such instances.”
David Renzi: “The availability of certain products or services, like insurance, doesn’t mean we have to use them. It’s about having options and choosing what’s best for the client.”
Alex Pars: “Being licensed in various areas allows us to navigate the industry effectively, ensuring we recommend solutions that are genuinely in the client’s best interest.”
Robin Dolezal: “In conclusion, when seeking a financial advisor, it’s advantageous to look for a fiduciary. This ensures that the advisor is legally and ethically required to act in your best interest, offering peace of mind and a path to financial security.”
