By Brent Matthew
When you choose a financial advisor, you’re doing more than hiring a professional; you’re selecting a trusted partner to guide your financial future. This isn’t a decision to take lightly. You might assume that all financial advisors act solely in your best interests, but surprisingly, that’s not always the case. Only fiduciary financial advisors are legally obligated to do so.
Here’s a look at what it means to be an independent fiduciary and why it’s often a good idea for you to work with one.
What Does it Mean to Be a Fiduciary Financial Advisor?
The financial services industry is filled with wealth managers and financial advisors. However, not all of these professionals act solely in their clients’ interests. If you want straightforward, honest financial advice and want to reduce the possibility of conflicts of interest, you need a fiduciary financial advisor.
A fiduciary financial advisor is legally obligated to act in the client’s best interests. Specifically, that legal obligation includes the following:
- The advisor must be completely transparent.
- The advisor must mitigate or avoid conflicts of interest.
- If they cannot mitigate or avoid conflicts, they must notify the client.
Some kinds of financial advisors, including CERTIFIED FINANCIAL PLANNER® professionals and Registered Investment Advisors (RIAs), are fiduciaries by definition.
What about advisors who aren’t fiduciaries? These advisors still have some level of obligation to their clients. However, instead of being held to the fiduciary standard, they are held to the “suitability” standard.
This means that when recommending an investment product, a non-fiduciary advisor must suggest products that are suitable for you based on your goals, risk tolerance, and other factors. However, if they know of a product that would be an even better fit, they are not obligated to recommend it.
This situation often arises when a financial advisory firm offers a limited range of investment products. Non-fiduciary advisors are often paid on commission, so they generally recommend the most suitable product their firm offers.
Is It Unwise to Work With a Non-Fiduciary?
Financial advisors who aren’t fiduciaries can still be effective. However, when they make a recommendation, they’re not just thinking about what’s best for you; they’re also thinking about their own interests.
When you work with a fiduciary financial advisor, you can be confident that any advice is honest, transparent, and given with your best interests (and only yours) in mind.
Why Working With an Independent Advisor Matters
If you want to receive financial advice aligned with your goals, working with a fiduciary financial advisor is important. However, choosing an independent advisor (as opposed to someone affiliated with a big bank) can also make a significant difference in your planning.
When looking for a financial advisor or wealth manager, some people gravitate toward major banks because they see them as trustworthy. While this is an understandable impulse, you could be selling yourself short if you choose a bank-associated advisor.
For instance, if you’re planning to invest in annuities, most banks offer only a few. When your choices are limited, it may be difficult or impossible to find investments that match up with your goals.
As an independent fiduciary financial advisor, I have access to more than 2,000 annuities. When working with clients, I can assess their financial situations and find the specific investments that align with their goals.
Financial Guidance You Can Count On
When I founded Scottsdale Wealth Advisory, my goal was to help retirees and pre-retirees build fulfilling retirements through smart financial planning. Your success is our success, and because we’re fiduciary financial advisors, you can be assured that any recommendations are made in your best interests alone. Contact us to book your financial coaching session today!
To schedule your complimentary financial coaching session, call (480) 247-9090, email info@SWAFirm.com, or book directly at calendly.com/BrentMatthew.
Frequently Asked Questions About Fiduciary and Independent Financial Advisors
What is the difference between a fiduciary and a non-fiduciary financial advisor?
The main difference is the standard of care they are held to. A fiduciary financial advisor is legally required to act in your best interests at all times, offering advice that is transparent, conflict-free, and solely focused on your goals. In contrast, a non-fiduciary advisor follows a “suitability” standard—they can recommend products that are suitable for your situation, even if better options exist. This distinction can significantly impact the quality and objectivity of the advice you receive.
Why should I choose an independent fiduciary financial advisor?
Choosing an independent fiduciary advisor gives you access to a broader range of financial products and ensures that your interests come first. Unlike advisors tied to banks or large financial institutions, independent fiduciaries aren’t limited to a pre-approved list of investment options. They can customize strategies based on what’s truly best for your financial goals without sales quotas influencing their recommendations.
About Brent
Brent Matthew is the founder and CEO of Scottsdale Wealth Advisory, a full-service fiduciary retirement planning firm serving pre-retirees and retirees across Arizona and multiple states. With a strong commitment to always putting clients first, Brent leads the firm in developing comprehensive, tax-efficient financial plans tailored to each family’s unique goals. He is responsible for researching investment, annuity, and life insurance strategies and building smart asset allocations that reflect both long-term growth and risk management.
Brent is driven by a core belief: “The success of this firm will be measured by the success of the families it represents.” That client-first approach has guided his work since the beginning. He is currently enrolled at the College for Financial Planning and is on track to earn his CERTIFIED FINANCIAL PLANNER® designation. He also holds his Series 65 license and Arizona Life and Health Insurance Producers License.
Outside the office, Brent embraces the Arizona outdoors with “lil B” and their two pomskies, Heimo and Kota. Whether he’s hiking, fishing, dirt biking, skiing, golfing, kayaking, or skeet shooting, Brent finds balance and joy in staying active. He’s also a fan of CrossFit, brunching, and cruising the Phoenix canal system on his beach cruiser—usually with classic tunes from the Marshall Tucker Band, Gordon Lightfoot, or Crosby, Stills & Nash playing in the background. To learn more about Brent, connect with him on LinkedIn.
Advisory services are offered by Scottsdale Wealth Advisory, LLC, an Investment Advisor in the State of Arizona. Insurance products and services are offered through Scottsdale Wealth Advisory, LLC. Scottsdale Wealth Advisory, LLC is not affiliated with or endorsed by the Social Security Administration or any government agency, and is not engaged in the practice of law. Be sure to consult with a licensed financial professional to confirm the accuracy of the insurance product you are considering.
