What is a Financial Fiduciary?

A Strange Word With Supposedly a Big Advantage: Defining a “Fiduciary”?

Is the advantage really that Big?    Helping people make smart financial decisions should be someone you trust, Fiduciary or not, personally I don’t care!
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Honestly if you are working with a financial advisor who you don’t feel has your best interest at heart, THAT IS ON YOU!  If the person has initials behind their name or the titel of Fiduciary, really means nothing if you don’t have a good gut feel regarding your advisor.


Merriam-Webster defines fiduciary this way: “one that holds a fiduciary relation or acts in a fiduciary capacity.” Not all that helpful…

For a word that’s been around since 1631, it sure has done a good job of escaping understanding.

But by consulting another dictionary, one might finally understand why all the attempts to create  hype around the word is about. Dictionary.com defines fiduciary this way: “a person to whom property or power is entrusted for the benefit of another.” That’s better.

Some financial advisors are fiduciaries, obligated by law to act in your best interest as they manage your assets or money. Rather than operating out of self-interest (such as recommending insurance policies or investments in pursuit of fees and commissions), a fiduciary advisor is obligated to make recommendations that benefit you, the customer.  My questions is kind of obvious, Shouldn’t they all be?

The benefits of a fiduciary are clear: Americans who enlist fiduciary advisors report increased investment gains and benefit from increased assurance regarding financial decisions. A 2020 Northwestern Mutual study found that U.S. adults who work with a financial advisor report “substantially greater financial security, confidence, and clarity than those who go it alone.”    That is true, but many financial advisors are not Fudiciaries.

Yet knowing how to find a reputable fiduciary advisor is, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. “Fiduciary financial advisors near me,” “best fiduciary financial advisor,” and “financial investment advisors near me” are searched for hundreds of times per day.

Finding a fiduciary shouldn’t be that hard. Thankfully, it isn’t, but is it really that important?, only you can answer that.  Most of the readers of saveyourbucks.com and our sister site www.cmgcrypto.com or those that want to do their own research and make their own financial decisons instead of depending on someone else, fiduciary or otherwise.