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Fiduciary standard helps you to know who to trust with money advice

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11 months ago

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It can be hard to know who you can trust with financial advice. Asking one key question can help: Are you a fiduciary?

A fiduciary is someone who has a legal duty to act in the best interest of their client when offering them financial guidance and managing their money or property.

However, “not every financial professional is required to do that,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City. (CFPs are held to a fiduciary standard.)

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For example, some financial professionals follow only a “suitability” standard, he said.

“Which means their recommendation just has to be appropriate, not necessarily the best option,” said Boneparth.

A fiduciary ‘creates alignment’

Prior administrations and lawmakers have tried but failed to implement a fiduciary standard to cover more financial professionals and advice, but those efforts have faced political, legal and industry pushback. Today, it’s largely up to individual investors to make sure they’re working with a professional who is a fiduciary.

Failing to do so can lead to bad outcomes, “like being sold high-cost investments when lower-cost options are available or being steered into products that benefit the advisor more than they benefit you,” Boneparth said.

“Over time, higher fees and misaligned advice can cost people tens of thousands of dollars,” he said.

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The term “fiduciary” is derived from the Latin word, “fiducia,” meaning trust, said Marguerita Cheng, a CFP and chief executive of Blue Ocean Global Wealth in Gaithersburg, Maryland.

Not only do fiduciaries need to prioritize the client, but they also must disclose any conflicts of interest, said Cheng. That means they should be upfront about how they get paid and whether they receive commissions on certain products, as well as if they’re involved in any business relationships that may influence their advice.

“Every advisor has a conflict of some sort,” said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida. “The key to being a fiduciary is to acknowledge the conflicts and still do the right thing for the client.”

Ultimately, you should look for a financial advisor who is a fiduciary because “it creates alignment,” Boneparth said.

“You know the advice you are getting is not being driven by hidden commissions or sales quotas, but by what is best for your situation,” he said.

How to find a fiduciary financial advisor

Use the Securities and Exchange Commission’s Investment Adviser Public Disclosure site to look up an advisor’s Form ADV.

“This document lays out how the advisor is compensated, what services they provide and whether they are registered as an investment adviser,” Boneparth said. “If they are, they are bound by the fiduciary standard.”

Consumers can also look for a fiduciary financial advisor with organizations such as the CFP Board, the organization that enforces the standards for certified financial planners, and NAPFA, a professional organization of fee-only, fiduciary advisors.

A fee-only advisor only receives compensation from clients for their advice and planning services and does not earn commissions for selling you a particular product.

Many financial advisors are not fiduciaries, or they are only adhering to the fiduciary standard some of the time, McClanahan said. For example, the CFP Board says that a professional must be a fiduciary when they’re offering financial planning or advice, she said.

“However, some of the firms that call themselves fiduciaries wear two hats,” McClanahan said. “What this means is that when they are not providing financial planning or financial advice, they do not act as fiduciary.”

You know the advice you are getting is not being driven by hidden commissions or sales quotas, but by what is best for your situation.

Douglas Boneparth

president and founder of Bone Fide Wealth

As a result, on some occasions they may sell you a product or inform you about products that are, in fact, not in your best interest. To avoid such an outcome, McClanahan recommends asking your prospective financial advisor: Are you a fiduciary 100% of the time?

“And get it in writing,” she added. The Committee for the Fiduciary Standard’s website provides an oath you can print out and have an advisor sign.

But just because someone calls themselves a fiduciary doesn’t mean they can’t be a bad actor, McClanahan said. Due your due diligence researching the advisor and be on the lookout for other red flags.

“The best way for a client to protect themselves is to make sure they understand how much they are paying, what they are paying for and to make sure the advisor is delivering what they promised,” she said.

Boneparth, Cheng and McClanahan are all members of CNBC’s Financial Advisor Council.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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