I asked my financial advisor if they are a fiduciary, and they said no, is this bad?

 

I asked my financial advisor if they are a fiduciary, and they said no, is this bad?

Short answer? Yeah, that’s a red flag.

When I first started getting serious about my finances, I didn’t even know what a fiduciary was. But once I understood the difference between a fiduciary and a “regular” financial advisor, I realized just how big that gap is. Honestly, it can mean the difference between growing your wealth and getting taken for a ride.

So let’s break it down.

A fiduciary is legally required to act in your best interest. Not just “make recommendations” or “offer options.” They have to put you first. That means they can’t steer you into high-fee products just to earn a commission. They’re held to a much higher ethical standard, and if they screw that up, they can get in serious trouble.

Now compare that to a non-fiduciary financial advisor (which, by the way, includes a lot of people who call themselves advisors but are really more like glorified salespeople). These folks often work under something called the suitability standard. That means they only have to recommend something that’s “suitable” for you, not necessarily what’s best for you.

Big difference, right?

Here’s an example: Let’s say there are two mutual funds that do the same thing. One has low fees, and the other has high fees and pays the advisor a commission. A fiduciary would steer you toward the low-fee fund because it’s in your best interest. A non-fiduciary? They’re allowed to recommend the one that pays them more, even if it eats into your returns.

And the worst part? A lot of people don’t even realize this is happening.

That’s why, in my opinion, working with a fiduciary is non-negotiable. You want someone who’s legally and ethically on your side. Someone who wins when you win, not when they sell you a product.

If your current advisor told you they’re not a fiduciary, I’d seriously reconsider that relationship. You’re trusting this person with your money, your goals, and your future. Don’t settle for anything less than someone who’s 100% in your corner.

If you’re ready to find a fiduciary advisor near you, I highly recommend checking out ComparisonAdviser. It’s a free tool that connects you with real fiduciary advisors. These are people who are vetted, experienced, and legally obligated to do what’s best for you.

Takes less than a minute to get matched, and honestly, it could save you thousands down the line.