Fiduciaries are required by law to be unbiased and put the interests of their clients first. They disclose any potential conflicts of interest. Their compensation is not influenced by commissions or sales. Overall, a fiduciary relationship is built on loyalty, honesty, transparency, and most importantly, TRUST.
When you hire a lawyer, they have a fiduciary duty for competence, communication, and confidentiality. Lawyers are legally obligated to provide unbiased advice to help you achieve the best possible outcome. (2)
Doctors have a fiduciary responsibility to provide you unbiased recommendations and advice on medical related matters. Doctors cannot offer medications or procedures that are not in your best interest. (3)
Like lawyers and doctors, investment advisors also operate as a fiduciary when providing you financial advice. This is the opposite of a broker, whose only responsibility is making “suitable” recommendations.