top of page

WHAT IS A FIDUCIARY?

Being a fiduciary to our clients means that we are on your side in all aspects of your financial journey at all times, which is not the way traditional financial firms operate. We are registered with the state of Alabama (officially labeled a Registered Investment Advisor or RIA). Federal and state law requires RIAs be held to a fiduciary standard. This requires us to act solely in the best interest of our clients at all times. We must disclose any conflict of interest, adopt a code of ethics, and fully disclose how we are compensated. Some estimates claim that only 15% of advisors have a fiduciary responsibility. Moreover, a large percentage of fiduciary advisors restrict their services to clients whose net-worth exceeds $1,000,000. Although Zora Financial does work with high net-worth clients, we believe that fee-only/objective financial planning is important for everyone; therefore, we require no minimums.

FROM BANKRATE.COM:

"THE FIDUCIARY STANDARD -- WHAT IS THAT?

Currently, there are two standards that advisers and financial planners are held to - the suitability standard and the fiduciary standard. 

The suitability standard invites conflicts of interest pertaining to compensation, which can vary greatly from one product to another. [...] The other standard of care, the fiduciary standard, basically charges advisers with putting their clients' best interest ahead of their own. For instance, faced with two identical products but with different fees, an adviser under the fiduciary standard would be compelled to recommend the one with the least cost to the client, even if it meant fewer dollars in the company's coffers -- and his or her own pocket."

FROM INVESTOPEDIA.COM:

DEFINITION OF 'FIDUCIARY'

 

1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.

2. A loan made on trust rather than against some security or asset.

INVESTOPEDIA EXPLAINS 'FIDUCIARY'

1. Children or elderly people typically need a fiduciary. The person who looks after the assets on the other's behalf is expected to act in the best interests of the person whose assets they are in charge of. This is known as "fiduciary duty".

To learn more about our fee schedule and what the fiduciary standard means to us at Zora Financial, download our informational packet

Still not sure? Let us tell you more. Click below to schedule a no cost, no obligation meeting today!

bottom of page