ARE YOU A FIDUCIARY?

The Short Answer is yes. The long answer is an investment adviser with a Series 65 license is granted the authority to offer fee-based service under the Investment Advisers Act of 1940 by FINRA/NASAA and typically does not receive commissions for securities sales.

However, being a fiduciary does not mean this person has the integrity to act ethically on other people’s money. We have all heard stories of the Ponzi scheme, and I want to share with you that these Wall Street people also operated under the Investment Advisers Act of 1940. As Warren Buffet put it, “when looking for somebody to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you.” But integrity is not a license, a designation like CIMA, or a degree like an MBA.

So, how do you know if somebody has integrity?

Honestly, we don’t. However, by paying attention to the details, you will learn more than others. At the 1997 Berkshire Hathaway annual shareholder meeting, Buffett explained that over the years, he had developed a “bunch of filters” to help him quickly assess and toss out businesses and people.

So yes, we all need our investment adviser to be a fiduciary, licensed professional with an advanced degree and special designation. But most importantly, is this a person I admire or want to be associated with? If the answer is no, none of the above matters at all. Your money is safer in your own hands.

When I look at Warren Buffet and Charlie Munger, my answer has been yes since 2012, and I have never regretted it. When you look at your investment adviser, can you honestly say yes and won’t change your answer for the rest of your life?

Our clients come from

ARE YOU A FIDUCIARY?

The Short Answer is yes. The long answer is an investment adviser with a Series 65 license is granted the authority to offer fee-based service under the Investment Advisers Act of 1940 by FINRA/NASAA and typically does not receive commissions for securities sales.

However, being a fiduciary does not mean this person has the integrity to act ethically on other people’s money. We have all heard stories of the Ponzi scheme, and I want to share with you that these Wall Street people also operated under the Investment Advisers Act of 1940. As Warren Buffet put it, “when looking for somebody to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you.” But integrity is not a license, a designation like CIMA, or a degree like an MBA.

So, how do you know if somebody has integrity?

Honestly, we don’t. However, by paying attention to the details, you will learn more than others. At the 1997 Berkshire Hathaway annual shareholder meeting, Buffett explained that over the years, he had developed a “bunch of filters” to help him quickly assess and toss out businesses and people.

So yes, we all need our investment adviser to be a fiduciary, licensed professional with an advanced degree and special designation. But most importantly, is this a person I admire or want to be associated with? If the answer is no, none of the above matters at all. Your money is safer in your own hands.

When I look at Warren Buffet and Charlie Munger, my answer has been yes since 2012, and I have never regretted it. When you look at your investment adviser, can you honestly say yes and won’t change your answer for the rest of your life?

Our clients come from