WT Wealth Management

Is your Investment Advisor a Fiduciary? Knowing the Answer is a BIG Deal!

By Glenn Leest

Did you know that there are two different sets of rules under which financial advisors operate; the Suitability Standard and the Fiduciary Standard? The biggest difference between the two is whose interests are put first. Source

The Suitability Standard:

An advisor can put their Broker/Dealers interest ahead of their client’s.
An advisor should generally know their client and should recommend investments that are mostly suitable to their needs.

The Fiduciary Standard:

An advisor must put their client’s interest first.
An advisor must operate with full transparency.
An advisor must not mislead clients; they are required to provide full and fair disclosure of all important facts.
An advisor must avoid conflicts of interest and must fairly disclose any unavoidable conflicts of interest.

Under the Suitability Standard, there isn’t a requirement to disclose conflicts of interest, or to put the client’s interest first. Why is this problematic? Think of it this way; if you needed a lawyer, would you hire someone who didn’t have to represent your best interests in the courtroom? To make this even more disconcerting, research clearly reveals that high-fee investments equate to lower performance over time. Source

The founding partners and advisors at WT Wealth Management are all fiduciaries. In addition, we own the same mix of assets as our clients, at the same prices. Our fees are based on a percentage of our client’s investment account value. Our financial incentive is the success of these investments for all of us.

Do you know which standards your financial advisor operates under? If you are not sure or want to understand more about the impact on your financial future, we offer a free consultation. Knowing the answer may, indeed, be a big deal.

Glenn Leest is a Registered Investment advisor with WT Wealth Management. He is the President of both the Flagstaff Investment Club and the Noon Lions Club. Glenn has a passion for educating those in his community about investing and how to maximize their investing potential. Glenn can be reached at (928) 225-2474 or by email gleest@wtwealthmanagement.com

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There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

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WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.