Fiduciaries are legally obligated to act in their clients’ best interests, putting their clients’ interests ahead of their own. They must try to avoid misleading clients and disclose material facts to clients and prospective clients.
…Such as how and where they receive compensation for selling you certain products that they have an interest in. It also means a fiduciary must offer you suitable investments, appropriate for your risk-capacity, and financial goals.
In your investing quest, you may also encounter broker-dealers. Broker-dealers may also be called “financial advisors,” but they are not investment advisors or fiduciaries. They are not legally obligated to tell you when they have an interest in the security they are recommending for you.
35-year-old new mom who plans to keep killing it in her career.
Maria makes $125,000 as an account director at an ad agency. She’s coming off maternity leave and thinking forward to summer camp, private school, and potentially expensive hobbies in her kid’s future.
Disclosure: For illustrative purposes only. This is a hypothetical client scenario and does not represent any Ellevest client or confer individually tailored investment advice.
$75,000 for summer camps, sports, music lessons and other incidentals