Perhaps you have heard the buzz about how financial advisors need to be fiduciaries. It comes up in many advertisements on T.V. and radio. Maybe you were surprised to hear that not all people who call themselves financial planners are required to put your interests above their own. It can be so confusing and begs the question:
What is a fiduciary and why should I care?
According to U.S.News,
In April 2016, a new word entered many investors’ vocabularies: fiduciary. Even for those who’d heard it before, the term took on a whole new meaning when the Department of Labor’s Fiduciary Rule was released. The rule was officially vacated by the Fifth Circuit Court of Appeals in June 2018, but resurfaced in a less restrictive form in 2020. The latest version was approved by President Joe Biden’s administration and went into effect on Feb. 16, 2021.
This was not a new concept to the world of financial advice but became a buzzword for media outlets and advertising entrepreneurs.
With the rule, financial advisors fall into two camps: fiduciaries and nonfiduciaries, adding a new level of confusion – and risk – to the advisor-client relationship for many investors. Not only are there fiduciaries and nonfiduciaries, but also true fiduciaries and pretend fiduciaries, which present even bigger risks to investors. (U.S.News)
So, it is important to understand what a fiduciary actually is and pay attention because not everyone who calls themselves a financial planner is a fiduciary.
So, why does this matter?
The Simple Dollar describes it this way:
There are many different kinds of people who call themselves financial planners, many of whom do very different things and provide very different kinds of services.
This means that someone looking for professional help with their financial situation is left with the challenge of sorting out which of these options actually provide sound, objective advice and, therefore, are worth the fees charged.
What about Medallion Financial Group?
We opened our doors in 1987 and have been helping families invest in the future for over 30 years. Our focus is twofold: first and foremost, we are fiduciaries. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, putting their needs before our own. We strive to exceed client’s expectations – because we have high expectations of ourselves. Learn more about us here.
Medallion Financial Group is independent
As defined by U.S.News, “an independent financial advisor is an advisor that is not tied to the proprietary products of one firm and/or not tied to minimum production requirements of one specific investment or insurance company. Independent advisors have more freedom with the products they offer and how they run their business. Meanwhile, advisors who work for a large financial institution may only be allowed to offer their firm’s products and may have restrictions on how they can conduct their business.”
we believe in hiring well
From student interns to senior partners, we’re careful about who we hire and we value each member of our team. We look for employees who value trust, respect the cares and concerns of our clients, and are teachable and not defensive. Personality, skills, and credentials matter to us. Anyone can say they are financial planners, but very few are Certified Financial Planners. Our number of CFPs greatly exceeds the norm.
At Medallion Financial Group, we believe financial planning is about Family. We have been helping families invest in the future since 1987 through a holistic planning approach. We recognize there are a variety of needs when it comes to retirement planning, plan rollovers, annuities, college planning, life insurance options, and investment management. It is easy to get lost in a sea of choices. Our financial advisors help with the basics and beyond to enable our clients to get the education, advice and management they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.