Fiduciary

A fiduciary is someone legally and ethically required to act in another party's best interest. In financial services, the fiduciary standard contrasts with the older 'suitability' standard, which only required advice to be appropriate for the client — not necessarily the best available option for them.

The difference matters in practice. Under a pure suitability standard, an advisor can recommend a product that pays them a higher commission when a lower-commission product with equivalent features is available — as long as the chosen product is 'suitable' for the client's stated needs. Under a fiduciary standard, that same recommendation would be a breach of duty.

The fiduciary obligation has several components: a duty of loyalty (putting the client's interest ahead of the advisor's own), a duty of care (diligent, prudent decision-making), a duty of full disclosure (all material facts, including conflicts of interest), and a duty to act within the scope of the advisory engagement.

Not every advisor is a fiduciary all the time. Some are fiduciaries when giving advice but brokers (lower standard) when selling products. The cleanest way to verify: ask the advisor to confirm, in writing, that they are a fiduciary 100% of the time, in all interactions with you. An advisor with no conflicts will have no problem putting that in writing.

Panic Proof Retirement™ operates under a fiduciary standard at all times.