Why High-Net-Worth Individuals Prefer Fiduciary Advisors
Why High-Net-Worth Individuals Prefer Fiduciary Advisors Understanding Fiduciary Advisors Alignment of Interests Comprehensive Wealth Management Transparency and Trust Risk Management and Diversification Personalized Financial Strategies Understanding Fiduciary Advisors High-net-worth individuals (HNWIs) often seek financial advisors who adhere to a fiduciary standard, meaning they are legally and ethically obligated to act in their clients' best interests. This contrasts with advisors operating under a suitability standard, who may recommend products that are suitable but not necessarily optimal for the client. Alignment of Interests Fiduciary advisors are typically fee-only, eliminating potential conflicts of interest arising from commission-based compensation. This structure ensures that the advisor's recommendations are aligned with the client's financial goals, fostering a relationship built on trust and transparency. Comprehensive We...