StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Stash

What the Fiduciary? A Guide to Your New Favorite F-Word.

October 21, 2016

  • A fiduciary is ethically and legally bound to act in the best interest of the person whose assets they are managing
1 min read

Need a new favorite ‘F-Word’?

The word fiduciary is a powerful concept that defines a very specific relationship.

A fiduciary is ethically and legally bound to act in the best interest of the person whose assets they are managing, even at their own cost.

When you hear fiduciary, think trust and duty.

Trust is vital to the fiduciary relationship. Fiduciaries are required to act in your (their client’s) best interests. This isn’t just an ethical relationship, but also a legal obligation. This bond is one of the highest legal standards of care, or duties, that one party can owe to another.

What does a fiduciary do?

Fiduciaries have a lot of things on their plates. They must take all available info into account and then act judiciously. They also have to fulfill this laundry list**:

Who’s a fiduciary? 

For you legalese lovers: in the case of Investment Advisors, the fiduciary relationship is grounded in Securities Laws* and overseen by the SEC and/or state securities regulators.

Now you know!

Investing, simplified

Start today with as little as $5

Get the App

By Clare Edgerton

Next for you
Intro to Stash: Everything You Need To Know To Start Investing

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
Careers politics Technology budgeting social media
Disclaimers

*Anti-Fraud provisions of the Investment Adviser’s Act of 1940


**More information can be found starting on page 23

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.