What Is an Independent Fiduciary and Why Should I Work With One?

By Chris Palabe, CFS®, AIF®

There are financial advisors everywhere you turn. The problem is not finding one, but finding the right one, someone you can trust to deal with you honestly and help you pursue your goals. 

Thankfully, there is someone in the financial planning and advisory world that will, first and foremost, put your interests ahead of their own—and that person is a financial advisor who is held to the fiduciary standard.

Fiduciary First

At Palabe Wealth, we believe you deserve the best. And when it comes to your money, a fiduciary is the first person you should look to for help. Here’s why.

Fiduciary financial advisors are legally and ethically required to act in their clients’ best interests. Fiduciaries have a duty to be loyal to their clients and ensure they disclose any potential conflicts of interest that may come up. Any advice they give is based on the client’s financial situation and investment goals—not the advisor’s ability to make a profit. 

A fiduciary advisor can’t, for example, suggest you buy a security that will provide a kickback for them but not benefit you. They aren’t out to make a commission or sale. Their number-one priority is giving you advice that helps you reach your financial goals. 

Choosing a fiduciary financial advisor means that you should not be misled or mistreated. It means you have a professional in your corner rooting you on as you journey toward financial security.

Why Should I Work With an Independent Fiduciary?

There are several benefits to working with an advisor who serves in a fiduciary capacity. By working with an advisor who is bound to the fiduciary standard, you can feel empowered that the investment advice you receive for yourself and your finances is in your best interest. Clients have the power to ask questions and demand the highest value for the service that advisors are providing. Here are some other ways working with an independent advisor could benefit you.

Personalized, Objective Advice

As independent advisors, the guidance we offer our clients is objective because we are not tied to any particular financial company or investment firm. This means we can analyze your complete financial picture, gain an understanding of your life circumstances, dreams, and concerns, and recommend financial strategies and products that fit you. We don’t stay within one investment firm or recommend products to meet quotas. As such, you can count on us as independent advisors to give you access to the products that are tailor-made to fit your needs.  

Fee Transparency

Typically, independent financial advisors operate on a compensation model that is simple and straightforward with no hidden costs. This is important because we are not beholden to recommend products that will benefit us financially in any way.  “How are you compensated?” should be a question everyone should ask their financial advisor.  

Relationship-Centered 

At Palabe Wealth, we know our clients personally and have developed personal relationships with many of them. Because of this, we only offer advice that is aligned with our clients’ goals and make a point to keep up with any change in our clients’ situations that could affect their financial plan. Rather than being static, our financial plans grow with you. They are built to fit your life, not the other way around. 

Learn About The Fiduciary Approach

We at Palabe Wealth strive to work with the highest integrity. As independent registered representatives, we recommend strategies to help you work toward your retirement goals without forcing your investments into a one-size-fits-all portfolio. If you’re unsure about your current financial strategies, haven’t reevaluated your investments in several years, or are just interested in learning more about what it means to work with a fiduciary, we’re happy to offer you a complimentary consultation. Schedule a 15-minute introductory phone call or call us at 847-249-6600 to learn if we are the right fit for your financial goals. 

About Chris

Chris Palabe is the founder and CEO of Palabe Wealth, a financial planning firm providing retirement plan strategies for businesses and individuals. For 25 years, Chris has been serving his clients with customized plans and a boutique approach. He started his firm because of his passion for making a difference in others’ lives and a genuine desire to build long-term relationships with his clients so they can seek to achieve their ideal retirement and manage risk. Chris is a Certified Fund Specialist (CFS®) and Accredited Investment Fiduciary (AIF®) professional and has a degree from Université Denis Diderot (Paris VII). When he’s not working, you can usually find him riding horses and competing in dressage at a national level. He also loves reading, watching movies, and eating out. To learn more about Chris, connect with him on LinkedIn.

This material was prepared for Palabe Wealth, Inc.’s use.