If someone is managing your money or offering you financial advice, it would be nice if that person acted in your best interest, right? Of course. But that's not always how it works. Only a fiduciary advisor is required by law to a act in your best interest.
What does it mean to be a Fiduciary Advisor? A fiduciary is a person who must act in your best interest. And they are required by law to do so. A fiduciary advisor has a fiduciary duty, which is the highest standard of care. Put simply, with a fiduciary advisor, you come first.
How do you know if your "investment person" is a fiduciary? The best way to find out is to ask. And I would do this in writing. It's kind of confusing, but some advisors may have a fiduciary duty with some of your assets, but not all.
Here is what you should ask your financial advisor: Email your financial advisor today and ask, "I've been reading about the fiduciary rule recently. I am curious, do you have a fiduciary duty when managing all my investments? Are you a fiduciary? Do I have any investments or accounts with you where you do not have a fiduciary duty? Please reply in writing". By asking them to reply in writing, they can't skirt around the question so make sure they reply in writing. And make sure to ask about any accounts where they are not acting as a fiduciary. It's your money. You deserve to know so don't hesitate to ask.
What if your "investment person" is NOT a fiduciary? Don't be alarmed just yet. They might be serving you well. Just because someone isn't a fiduciary doesn't mean they can't act in your best interest. It just means they are not required by law to do so. In this case, it's even more important to understand how he/she is being compensated. If your total costs and fees seem fair and reasonable, you are probably okay. If your total costs and fees seem high, then they might not be acting in your best interest. So if your "investment person" is NOT a fiduciary, ask more questions. Be more aware. (Note: Check out my 'Know Your Total Cost of Investing' blog post to get answers to your total cost questions.)
HyLine Bottom Line: A fiduciary advisor is required by law to act in your best interest. If it were my money, I would want to know that my "investment person" is required by law to act in my best interest.
Is HyLine Wealth a fiduciary firm? Am I a fiduciary advisor? Yes and yes. HyLine Wealth is an investment adviser firm registered in the state of South Dakota. I am an Investment Advisor with HyLine Wealth. Both my firm and myself have a fiduciary obligation, and we are required by law to act in your best interest. Put simply, you come first. Note: Even though my firm is registered in South Dakota, the “de minimis exemption” allows me to do business in most other states (with only a few exceptions).
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Questions? Don’t hesitate to reach out. If you have questions on anything, feel free to email me at email@example.com or call me at (605) 275-2343.
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5809 S Remington Place, Suite 101
Sioux Falls, SD 57108
Office (605) 275-2343
Location-Independent: Pretty much wherever you are located, we can work together. I am registered in the state of South Dakota and have an office in Sioux Falls. The “de minimis exemption” allows me to do business in most other states (with only a few exceptions). I consider myself "location-independent" as I use a heavy dose of technology to communicate and serve you. This includes screen sharing technology, electronic signatures when possible, and shared client portals so we can view the same information at the same time. Frankly, I can probably offer you better service than your "local" financial advisor.
HyLine Wealth is an investment adviser registered in the State of South Dakota. We do not provide tax or legal advice. Past performance is no guarantee of future results. Always consult your financial advisor, tax advisor, attorney, and/or insurance agent before implementing any specific strategy to make sure it is right for you and your unique situation. We are not responsible for the accuracy or upkeep of information on the links we provide to outside websites. If/when we provide a link to an outside website, be sure to independently confirm the accuracy of any information.