Fiduciary is a strange term that many people are learning about the first time because of the government’s proposed rules regarding investment advisors. A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person. This gets at the heart of the work that we do.
Many may not realize that the financial business is filled with conflicts of interest. Examples of this include the hidden fees in mutual funds which can exceed 3% annually or the revenue sharing amongst advisors and broker-dealers from mutual fund companies and insurance companies. Revenue sharing provides monetary incentives to advisors for selling specific financial products. These are examples of the conflicted business model that we wish to avoid.
We have developed this Fiduciary Pledge as our commitment to pursue a fiduciary business model. This is a business model that puts you first.
We, the advisors of Callesen Wealth Management, pledge to act as investment fiduciaries for our advisory clients and in all business transactions.
- We understand that a fiduciary holds an ethical relationship of trust and must prudently care for all client assets;
- We believe that clients deserve the truth, and will plainly state all fees and compensation received due to client engagement;
- We will be cognizant of all conflicts of interest and take measures to declare and resolve them. We will also avoid revenue sharing agreements whenever possible.
- We will not accept perks paid for by mutual funds and insurance companies using shareholder money. Examples of these perks could include marketing money for client events, complementary due diligence trips, free golf outings, meals, sporting event tickets, etc.
- In accepting the role of fiduciary, we must manage your investments in a disciplined and defensible manner, and it is our job to educate our clients on what they own and why they own it;
- We will not bow to a corporate culture that dictates sales goals, commissions, or obligations to a parent company. Instead, we will work for our clients, providing transparent and objective advice that puts their needs first.
This pledge covers all services and products that our firm provides.
If you have a wealth advisor that won’t take this pledge themselves, we encourage you to reconsider your relationship with them. There are lots of pressures in corporate culture, especially in the financial world. Rest assured that at least with Callesen Wealth Management the client still comes first and the work we do will always be trustworthy, transparent, and with the aim to better the lives of our clients.
Investing in mutual funds involves risk, including possible loss of principal.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Callesen Wealth Management, a registered investment advisor and separate entity from LPL Financial.