Why You Need a Fiduciary

A fierce debate is going on within the financial services industry over which financial professionals should be held to a fiduciary standard. The lack of one defining standard is impacting investors in ways they may not even realize. Medical professionals have the Hippocratic Oath, a standard for ethics in medicine. The financial industry does not have this and would be wise to implement a strong single fiduciary standard that would protect consumers. Unfortunately, this standard may not come for a while.

The fiduciary standard in its simplest terms means putting the client's interest ahead of your own. The Committee for the Fiduciary Standard outlines 5 principles of the fiduciary standard. To summarize, they are:

• Put the client's best interests first.
• Never mislead clients.
• Act with prudence.
• Avoid conflicts of interest.
• Disclose and manage unavoidable conflicts in the client's favor.

This may seem like common sense and many may assume that all financial professionals are required to act in this manner. Unfortunately, there are many in this industry that act under a whole different set of standards. The standards for financial services differ depending on the field of practice. As an independent Registered Investment Advisor, Cahill Wealth Management must uphold the fiduciary standard. However, a broker or "financial advisor" selling investments for a broker-dealer, or an insurance agent selling insurance-based investments (annuities) are held to the suitability standard (not the fiduciary standard).

Here's an example.You want to buy a house that is less than $200,000 and has a basement. Those two requirements would leave you with a long list of "suitable" options. However, wouldn't you want to look into the neighborhood, schools, taxes, and so on? Don't you want to find something that goes beyond "suitable"? Don't you want what is "best" for you?
The investment landscape is confusing enough as it is. Consumers deserve to know if they are working with a fiduciary or not. If you decide to work with Cahill Wealth Management you will know that we are a fiduciary that will work on your behalf, always putting your interests first.

Why You Need a Fiduciary

A fierce debate is going on within the financial services industry over which financial professionals should be held to a fiduciary standard. The lack of one defining standard is impacting investors in ways they may not even realize. Medical professionals have the Hippocratic Oath, a standard for ethics in medicine. The financial industry does not have this and would be wise to implement a strong single fiduciary standard that would protect consumers. Unfortunately, this standard may not come for a while.

The fiduciary standard in its simplest terms means putting the client's interest ahead of your own. The Committee for the Fiduciary Standard outlines 5 principles of the fiduciary standard. To summarize, they are:

• Put the client's best interests first.
• Never mislead clients.
• Act with prudence.
• Avoid conflicts of interest.
• Disclose and manage unavoidable conflicts in the client's favor.

This may seem like common sense and many may assume that all financial professionals are required to act in this manner. Unfortunately, there are many in this industry that act under a whole different set of standards. The standards for financial services differ depending on the field of practice. As an independent Registered Investment Advisor, Cahill Wealth Management must uphold the fiduciary standard. However, a broker or "financial advisor" selling investments for a broker-dealer, or an insurance agent selling insurance-based investments (annuities) are held to the suitability standard (not the fiduciary standard).

Here's an example.You want to buy a house that is less than $200,000 and has a basement. Those two requirements would leave you with a long list of "suitable" options. However, wouldn't you want to look into the neighborhood, schools, taxes, and so on? Don't you want to find something that goes beyond "suitable"? Don't you want what is "best" for you?
The investment landscape is confusing enough as it is. Consumers deserve to know if they are working with a fiduciary or not. If you decide to work with Cahill Wealth Management you will know that we are a fiduciary that will work on your behalf, always putting your interests first.