What is a fiduciary?

A fiduciary is a person or entity that holds a legal or ethical relationship of trust. In the profession of financial advice, a fiduciary is one solely acting in the interest of a client.

A proper fiduciary avoids conflicts of interest. They also disclose all facts material to the relationship. If a potential conflict may interfere with a professional’s fiduciary duty to a client, the relationship should not be entered into. The professional relationship between a client and a fiduciary means:

  • The client always knows exactly how the fiduciary is compensated
  • The fiduciary will owe their first and foremost loyalty to their client
  • The fiduciary commits to act with diligence and without bias
  • The fiduciary will always act with honesty, integrity, and professionalism
  • The fiduciary will only charge fees for their services (and not commissions), and will only charge amounts that are reasonable for the services being provided

In the United States, the largest organization of fee-only, fiduciary-only financial advisors is known as the National Association of Personal Financial Advisors (NAPFA), of which Callahan Financial Planning Company is a member.

Callahan Financial Planning Company and its employees have signed and are held to fiduciary oaths, in addition to their ethical oaths made as professional certificants of the CFP Board, the CFA Institute, as members of NAPFA, and under fiduciary securities laws in the state of Nebraska and the United States.

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Author: Callahan Financial Planning

Callahan Financial Planning is an independent fiduciary financial advisory firm, providing planning on a fee-only basis, without sales commissions, with offices in San Rafael, San Francisco, and Mill Valley in Northern California, in Omaha and Lincoln in Nebraska, and in the Denver metro area in Centennial Colorado.