Any advice concerning your money that you’re willing to pay for is best received from a ‘financial fiduciary’.
Why? Because, a financial fiduciary is obligated to place your needs ahead of their own.
Sounds like good advice. I think it is.
However, maybe you’re saying to yourself, “Any honorable financial adviser should be doing this anyway. Right?” I think so, too.
Sadly, there have been more than a few moments in U.S. history where financial advisers, brokers, dealers, and others have behaved far more in their own interests, at the expense of many, many everyday investors.
Not good for you.
In fact, such was the concern, that beginning with the Investment Advisers Act of 1940, financial advisors and others were legally required to follow a Fiduciary Standard…or else they’d wind up in BIG trouble with the SEC, for starters.
Not good for self-interested financial advisers.
Under the Advisers Act, “an adviser is a fiduciary whose duty is to serve the best interests of its clients, which includes an obligation not to subrogate clients’ interests to its own.”
In my view, this is good legislation. However…..
Christians are called by faith to a higher fiduciary standard.
I’m a Christian, a husband, and a father. I’ve tried my best to follow Christ most of my adult life. I believe in Him. I try to learn from His teachings, and be as Christ-like as I can be….and, I fail most of the time. But, I keep trying.
Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, 4 not looking to your own interests but each of you to the interests of the others.
Philippians 2:3-4
When I first began working in financial services, and I became aware of the legal fiduciary standard for financial advisers, I firmly remember being a tad perplexed. I thought, why would I not want to place the needs of my clients’ ahead of my own. Why does this have to be a legal standard? Is this not just the right way to do business?
Then, my thoughts turned to my faith. I thought of a christian fiduciary standard.
A Christian financial adviser is legally bound to place the needs of his/her clients ahead of his/her own, but also eternally bound to do so, not only to our clients, but to ALL people, because of our faith and obedience to Christ Jesus.
Sure, a legal fiduciary standard is a good thing. A great many financial advisors are fiduciaries. Law dictates that they must be.
However, laws come and laws go.
Christ is the same yesterday, today and forever.
Christians are called by Lord Jesus to act as fiduciaries, to all people, all of the time. No legislation is necessary. In fact, Christian financial advisors (really, all Christians) believe that we are blessed when we do consider others more important than ourselves, and treat them accordingly.
Christ IS the fiduciary standard.
Let me know what you think?
Luke McCord, CFP® CSLP®