What is a fiduciary and why is having a financial advisor that acts as your fiduciary important?

A fiduciary is an individual who has been entrusted with the highest level of trust and confidence to manage and safeguard property or money. In this relationship, the fiduciary has a legal obligation to act solely in the best interests of the person for whom they are acting.

1. 1. Capital Financial Planners as a Fiduciary: Capital Financial Planners operates in a fiduciary capacity for its investment advisory clients. This means that the firm is legally bound to act in the best interests of its clients, prioritizing their financial well-being.
   2. Commissions and Fiduciary Relationships: When advisors recommend investments that pay commissions, a fiduciary relationship may not exist. Commissions can introduce conflicts of interest, as advisors may be incentivized to recommend products that generate higher commissions, potentially not aligning with the client's best interests.
   3. Fee-Based Accounts: Clients of Capital Financial Planners in fee-based accounts do not pay commissions. This fee structure helps ensure that a fiduciary relationship exists, as the firm's compensation is not tied to commissions, and advisors are motivated solely by the client's financial welfare.