I recently was posed a question that I have received multiple times in recent weeks. What exactly is a fiduciary?
I believe the question stems from recent commercials and publications where financial advisors are providing prospects the assurance that they are acting in a fiduciary manner with their clients’ assets.
Those that know me have heard stories about my furbaby, Finn. He is a part Labrador Retriever and part, multi-breed mix (unknown). He has been the best rescue dog I have ever had the privilege to care for. And by the way, if you have never visited the local animal shelter, please do so! There are so many great animals, many older, that will make fantastic additions to your home. But, I digress.
Finn is getting some age on him, and as a retriever, he does love to fetch. He would spend 4-5 hours a day running and playing if he could. The problem with that is he has recently had an injury to his leg and it got painful enough he could no longer put weight on his leg. After a visit to the vet, I had the duty to consider treatment options for him. He is diagnosed with a torn ACL (yes, just like humans). The suggested treatment was pain management and surgery. I had a decision to make for his ultimate benefit.
At that time, I was acting in a FIDUCIARY capacity for my dog. I was considering the options of his situation and deciding on his behalf. Of course, I tried the pain medication to give him immediate relief and ultimately made the decision that the surgery might not be in his best interest to provide a better quality of life. He is now able to manage to enjoy his day fetching and running, a much shorter time, and playing with other dogs. He does occasionally only use three legs to walk or run, but overall, he is living a good life. We can avoid the surgery, that might not have provided him good relief or better use of his leg at his advanced age.
As you understand the concept of a fiduciary, you can now apply that same understanding of the situation, making a decision for the best of another person or person’s finances. If you do not have a financial advisor acting in a fiduciary capacity for you, or if you are unsure if one is needed, give me a call. I am happy to review your situation and discuss it.
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