An Advisor By Any Other Name Does Not Smell as Sweet

February 12, 2016

Many investors look at investment advisors the same way. They are not. Registered Investment Advisors (RIAs) and brokers are held to very different standards. RIAs like TruNorth operate under a fiduciary oath and must always act in our clients’ best interests, while brokers are required to suggest suitable investments, they are not fiduciaries. Brokers sell investments and products. 

 

Anyone can call themselves an advisor, but not everyone is bound by a fiduciary standard. What does this mean?  It means that TruNorth must always always act in our client's best interests, even if their best interests conflict with our own. We have a "duty of loyalty" to every client we serve. 

 

Having said that, it doesn't mean all brokers are bad. There are many brokers that serve their clients well. What I am saying is that having a fiduciary duty is a better way to do business and should create a feeling of trust.

 

Most of our new clients come through referrals. They may know something about the work we have done for a colleague or friend. In any event, our clients should know that we use all of our knowledge and abilities to advance the best and truest interest for them. We take this responsibility seriously and accept it willingly. This is what creates trust. Trust is vital because it encourages our clients to be forthcoming with their entire financial positions, which then enables us to holistically plan for a better financial future. 

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TruNorth Capital Management, LLC (TruNorth) is an investment advisor registered in, and regulated by, the States of Michigan and Illinois. All clients and potential clients have access to important information about our business methods, fees, professional qualifications and all other pertinent business information. By using this website, you accept our Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss.

Regarding the interaction TruNorth or its representatives may have with clients and/or potential clients in ERISA-covered plans, including SEPs, SIMPLEs and non-ERISA retirement plans that are subject to Section 4975 of the IRS Code, including IRAs, Keogh plans and Solo 401(k)s (collectively "retirement plans"), TruNorth may provide non-discretionary investment advice to a specific investor, recommending or suggesting the acquisition or disposing of securities or other investment property in a retirement plan and/or recommending a rollover from a retirement plan to another. During the course of this interaction, TruNorth meets their requirements of a "level-fee fiduciary" and adheres to the Impartial Conduct Standards that require TruNorth to a) provide advice that is in the client's best interest, b) receive only reasonable compensation for its advice and; c) not make materially misleading statements. 

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