GreenStar Advisors is a fee-only fiduciary financial advisory practice in Centennial, DTC. That’s a mouthful, but a very important one. In our view, the most important question you can ask a potential advisor is, “How are you paid?” And for extra credit, ask, “If I work with you, will you be my legal fiduciary for all accounts with you?” The key word there is “all.” Please feel free to contact us to know more about our financial advisor fiduciary services.
A fiduciary is someone you hire to act on your behalf that has the power and responsibility of acting for another.
It is the highest legal duty of one party to another requiring absolute good faith and honesty. A fiduciary is ethically and legally bound to put their client’s interests above their own. They manage your assets for your benefit, rather than for their own profit, and cannot personally benefit from the investment decisions.
When you hire a fiduciary financial advisor in Centennial, DTC , you are hiring someone bound to work for your best interest. It is like hiring an expert extension of you. A financial advisor working in this capacity is working for you under the Fiduciary Standard.
The alternative to the Fiduciary Standard is the lessor Suitability Standard. A broker, who works for a broker-dealer, is likely operating under the Suitability Standard. In fact, some broker-dealers in Centennial, DTC do now allow their brokers to be fiduciaries. A broker-dealer is acting in the role of a salesperson who earns a commission when they steer clients into particular investment products (including mutual funds, annuities, or alternative investments).
Earning a commission for advice is a clear conflict of interest. It’s important to work with advisors providing unbiased advice that is in your best interest, and not simply selling you investment products.
Confusingly in Centennial, DTC , there are some advisors who do fiduciary financial advisory investment services in Denver are fee-based (not fee-only) who are dual-registered financial advisors. This means that they are registered as both fiduciary investment advisors and brokers and can wear either hat. Because of this duality, it may not be clear which hat they are wearing when you go into a product. When meeting with you, a dual-registered advisor may act as your fiduciary one minute and as a salesperson the next.
This is why it’s key to ask any potential advisor, “If I work with you, will you be my legal fiduciary for all accounts with you?” Otherwise, there are clear conflicts of interest in the advice they provide. In our experience, most people falsely believe that all advisors are legally required to act in their client’s best interests. This wrong assumption has exposed people to biased and costly advice from advisors who put their own interest before investors.
Often we bring on new clients who have been put in high commission products they can't get out of. In our portfolio management, we focus on fully liquid investments. This means that in most cases, clients could go 100% to cash at a moment's notice without paying any costs, trading fees, surrender penalties, or early redemption fees.
Because we only offer fee-only portfolio management, the combination of these things puts you in a powerful position. You pay as you go along.You can stop at any point or change your investment strategy at any point. You only stay with us if you want to stay. This puts you in a powerful position as our incentive is to keep you happy through excellent management and service.
Part of this P.A.T.H. Process experience is providing tailored solutions rather than a cookie cutter approach. Life changes and your portfolio should be ready to change along with it. The way we do this is through our innovative risk management process which starts with the GreenStar Risk Rater tool. This tool shows you how you see the world and how you approach risk. Rather than a dry exercise, this is a fun and thought provoking process.
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