What is a fiduciary?

The fiduciary standard

A fiduciary is a financial professional who is legally and ethically required to act in your best interest. Registered investment advisers — including Wilco Financial — are held to the fiduciary standard under the Investment Advisers Act of 1940 and applicable state law.

That means:

• Our advice must be in your best interest — not the firm's, not the adviser's.
• We must disclose conflicts of interest.
• We must charge reasonable, transparent fees.
• We must act with loyalty and care.

Fiduciary vs. "suitability"

Many people are surprised to learn that not everyone who calls themselves a financial advisor is a fiduciary. Brokers, insurance agents, and representatives of many broker-dealers operate under a lower suitability standard. Under that standard, a recommendation only has to be "suitable" — not optimal, not cheapest, not best for you.

That distinction matters most when commissions, product-sales incentives, or proprietary products are in the picture. A commissioned salesperson may legitimately recommend a higher-cost product over a cheaper, equally good alternative — as long as the recommendation is "suitable." A fiduciary cannot.

How to verify

Every registered investment adviser must file a Form ADV with regulators. You can look up any adviser at adviserinfo.sec.gov. Wilco Financial's Form ADV is also available directly on our site — view our Form ADV.

Why it matters

Over a 30-year investing career, the difference between a 1% and a 2% all-in cost can equal hundreds of thousands of dollars. When you factor in product commissions, sub-advisor fees, and hidden expense ratios, the gap widens further. A fiduciary relationship gives you the clearest line of sight into what you're paying and why.