The term “fiduciary” is not common to most boomers. It’s a term of law and has it’s roots in “legalese” but is fairly easy to understand. It simply means that one who is entrusted with the property of another to treat the property with the owners best interest in mind with out any conflict of interest. See my earlier post “RIA or Registered Rep?”
So the RIA type of advisor is who is legally obligated to act as a fiduciary, and since most Boomers don’t watch the market, her investments, and money issues all day everyday, it’s important to know who your advisor is and how he operates and then what you get for your pay.
The simple truth of the matter is that to be an “Advisor” we must advise on an ongoing basis which necessarily requires that the Advisor know what’s changing with the client. An hour or two per year doesn’t even scratch the surface of keeping up with the middle class baby boomer’s life changes. So those who accept a fee for manageing your money or annual/quarterly fee as compensation, should spend hours per month/quarter with each paying client. (the service is advice and the advice must be based on the client, which requires time spent to know the client!)