1330 Orange Ave., Ste 302
Coronado, CA 92118
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Disclosure: Orion Capital Management LLC (“Orion”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). The firm offers advisory services in the State of California and in other jurisdictions where registered or exempted. Registration does not imply a certain level of skill or training. The information on Orion’s website or in its distributed commentary shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons or entities of another jurisdiction unless otherwise permitted by statute. Orion’s individualized responses to consumers in a particular state in the rendering of personalized investment advice for compensation shall not be made without the firm first complying with jurisdiction requirements or pursuant to an applicable state exemption.
The information on Orion’s website or in its distributed commentary is not investment, tax, accounting or legal advice. Orion is not a tax advisor. For tax advice individuals should consult their CPA. This information is also not an offer or a solicitation of an offer to buy or sell any security, or to be construed as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon in the making of investment decisions. All content on this site is for informational purposes only, and nothing herein should be construed as an investment recommendation. Opinions expressed herein are solely those of Orion, unless otherwise specifically cited. Material presented is believed to be from reliable sources, but no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas described on Orion’s website or in its distributed commentary should be discussed in detail with an investor’s personal financial advisors and legal counsel prior to implementation.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested.
The information on Orion’s website or in its distributed commentary is provided “AS IS” and without warranties of any kind, either express or implied. To the fullest extent permissible pursuant to applicable laws, Orion Capital Management LLC disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.
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Orion does not warrant that the information on Orion’s website or in its distributed commentary will be free from error. Your use of this information is at your sole risk. Under no circumstances shall Orion be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Orion or an Orion authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy or an offer to sell any security, or a recommendation to buy or sell any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
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5 Benefits of Working with a Fee-Based Fiduciary Financial Advisor
Because so much of the financial services industry is still commission-driven, conflicts of interest are rife. For an individual seeking investment advice and/or financial planning, there is a wide variety of advisors from which to choose. There is a clear distinction, however, between the two main types of advisors: those that have a fiduciary duty to clients and those that do not. It is vitally important that clients understand the critical differences between the two. Here we discuss the benefits of working with a fee-only fiduciary financial advisor.
What is a Fiduciary?
A fiduciary is a person (or entity) that acts on behalf of another party and which has a legal duty to put the interests of the other party ahead of their own. Thus, financial advisors operating under a fiduciary standard are duty-bound to put the interests of their clients first. While there are nearly 700,000 financial advisors in the U.S. today, only about 10% operate under a fiduciary standard. This means that only 10% of advisors have the obligation to act in the best interests of their clients.
5 Benefits of Working With a Fee-based Fiduciary
1. Conflicts of Interest are Minimized
Fiduciaries are duty-bound to put the interests of their clients ahead of their own interests. This means they cannot make investment recommendations from which they derive any benefit (such as through a commission).
2. No High-Pressure Sales Tactics
Many people are reluctant to seek financial advice because of the industry’s reputation for aggressive sales tactics. Because a fiduciary is loyal to a client (not to a brokerage firm or mutual fund company), he or she has no reason to pressure a client into buying or selling a certain investment. Fee-based advisors work only for their clients.
3. Objective Advice
There is a blizzard of different financial products available today through banks, mutual fund companies, insurance companies, brokerage firms and others. Banks, brokerage firms and insurance companies are not fiduciaries, however, and their sales representatives have no obligation to act in their clients’ best interests. So how do their clients know for certain why they are being pitched a given product? Clients who work with a fee-only fiduciary know how their advisor is being compensated and can therefore be confident they are receiving advice that is not compromised by a commission or kickback arrangement.
4. Win-Win Business Model
Fee-only advisors usually charge a fee based on the amount of assets they manage for each client. Because they do not work on commission, their incentives are pretty clear: keep clients happy by growing their portfolios while delivering sound, objective advice.
5. Confidence and Peace of Mind
Perhaps the most significant difference a fiduciary can make in clients’ lives is by giving them peace of mind that they have an objective professional sitting with them on the same side of the table.
How Can You Determine if an Advisory Firm is a Fiduciary?
Fiduciaries are typically Registered Investment Advisors (RIAs) that are registered with either the state in which they are based, or, for firms managing more than $100 million, with the U.S. Securities and Exchange Commission (SEC). Fiduciary firms will have their Form ADV, which describes the firm’s business, available on the SEC’s website (https://adviserinfo.sec.gov).
Read more about how and why Orion Capital operates under a fiduciary standard.
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