How hard is it to find a independent financial adviser that is also a fiduciary?
Unfortunately, harder than you might think. Fiduciary advisors make up less than 10% of the financial services industry! This means that 90% of financial advisors do not have a legal duty to put your interests first, even above their own interests. Most investors are shocked to learn this. Cerulli Associates, a Boston firm that studies the financial industry, recently calculated that approximately 250,000 people throughout the U.S. call themselves financial advisors (there is no legal standard for calling yourself a “financial advisor”). Of those, 232,000 are sales people who work for their firm, not you. Only 23,000 are registered investment advisors (also known as fiduciary advisors). Sales reps selling insurance, mutual funds or other financial products are most likely not fiduciaries. Registered Investment Advisors and Investment Advisor Representatives are fiduciaries.
