When it comes to your money, not all financial advice is created equal. Whether you’re growing your startup, managing equity compensation, or planning for retirement, the type of advisor you work with can significantly shape your outcomes.
One of the most important—but often overlooked—distinctions in the financial world is this:
Is your advisor a fiduciary, or a commission-based representative?
Understanding the difference can help you protect your finances, avoid unnecessary products, and make decisions that truly support your goals.
What Is a Fiduciary Financial Advisor?
-
No hidden agendas
-
No steering you toward certain products to earn a commission
-
Full transparency about fees and compensation
Fiduciaries are held to the highest standard of care in the financial services industry. They must prioritize your needs over their own profit.
This standard is especially valuable during major life transitions—starting a business, selling a company, changing careers, or planning for financial independence.
What Is a Commission-Based Registered Representative?
By contrast, many financial professionals operate under a suitability standard, meaning their recommendations only have to be “suitable” for you—not necessarily the best or most cost-effective option.
These professionals often earn commissions on the products they sell, such as:
-
Mutual funds with high upfront fees
-
Insurance policies with long-term commitments
-
Annuities with complex terms
That doesn’t mean every commission-based advisor is dishonest. But the system introduces a potential conflict of interest that’s hard for clients to spot.
You might be getting advice shaped by incentives you don’t see—and that can cost you in both dollars and opportunities.
Why This Matters More Than Ever
In today’s world, financial decisions are more complex than ever—especially for startup founders, tech professionals, and independent workers managing multiple income streams and equity opportunities.
Without a fiduciary by your side, it’s easy to fall into costly traps:
-
Overpaying for insurance you don’t need
-
Missing tax-saving opportunities
-
Choosing investment vehicles that don’t match your timeline or goals
Working with someone who’s required to put you first can provide the clarity and confidence you need to move forward.
How to Tell the Difference
Ask a potential advisor these simple questions:
-
Are you a fiduciary 100% of the time?
-
How are you compensated?
-
Do you earn commissions or referral fees on products you recommend?
A fiduciary advisor will answer these questions clearly and without hesitation.
Final Thoughts
Financial advice should feel like a collaborative partnership—not a product pitch. Whether you’re navigating your first funding round, optimizing your compensation, or building long-term wealth, working with a fiduciary helps ensure your decisions are grounded in your best interests.
That’s why we’ve built our practice around transparency, trust, and a commitment to empowering clients through every stage of their financial journey.
Curious whether your current financial guidance is truly in your best interest?
Let’s connect. No pressure, just perspective.