What Is Fiduciary Wealth Management?
Fiduciary wealth management combines broad financial planning with investment management under a fiduciary relationship.
For Tennessee households with interconnected financial needs, fiduciary wealth management Tennessee firms provide may include investment planning, retirement income, tax planning coordination, estate considerations, and business succession planning.
What Does Fiduciary Mean?
A fiduciary has an obligation to act in the client's best interest when providing services subject to the applicable fiduciary standard.
Consumers should ask exactly when the fiduciary obligation applies and what services are covered.
ProffittGoodson states that it operates as a fiduciary and describes its services for individuals, families, retirees, business owners, trusts, and estates.
What Can Wealth Management Include?
Depending on the firm, services may include:
Investment management
Financial planning
Retirement planning
Cash flow planning
Tax planning coordination
Estate planning coordination
Business succession
Charitable giving
Family wealth planning
The benefit of this structure is coordination. A decision in one area may affect another.
Why Coordination Matters
Consider a business owner preparing for a sale. The transaction may affect taxes, investment allocation, retirement income, estate planning, and charitable goals.
A wealth management relationship can provide a framework for considering these decisions together.
ProffittGoodson describes this type of coordination across investment planning, retirement income, estate planning, business succession, charitable giving, and family wealth discussions.
Questions to Ask a Fiduciary Wealth Manager
Before selecting a firm, ask:
What fiduciary standard applies?
How are you compensated?
What services are included?
How are investments managed?
How do you coordinate tax and legal matters?
How often are plans reviewed?
Do you work with clients in situations similar to mine?
Wealth Management Should Fit the Household
Not every household needs the same services. A young investor with straightforward finances may need a narrower engagement. A business owner, retiree, or multigenerational family may need coordination across several financial areas.
The appropriate service model should match the decisions the household needs to make.
Conclusion
Fiduciary wealth management Tennessee households consider should be evaluated based on fiduciary obligations, services, fees, investment processes, and planning needs. Understanding the scope of the relationship can help consumers determine whether it fits their financial circumstances.
FAQ
What is fiduciary wealth management?
It combines wealth planning and investment services within a fiduciary relationship, subject to the applicable legal and regulatory requirements.
Is fiduciary wealth management the same as financial planning?
Not necessarily. Wealth management may include financial planning along with investment management and other services.
Who may benefit from wealth management?
Households with complex investments, retirement needs, business interests, estate considerations, or multigenerational wealth may have a broader need for coordinated planning.
How do fiduciary wealth managers charge fees?
Fee structures vary. Ask the firm to explain all fees and services before entering an engagement.
This material is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult appropriate professionals before making decisions.
DISCLOSURES: The information provided in this letter is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy, or investment product, and should not be construed as investment, legal, or tax advice. Proffitt & Goodson, Inc. makes no warranties with regard to the information or results obtained by third parties and its use and disclaims any liability arising out of, or reliance on the information. The information is subject to change and, although based on information that Proffitt & Goodson, Inc. considers reliable, it is not guaranteed as to accuracy or completeness. Source information is obtained from independent financial data suppliers (Interactive Data Corporation, Morningstar, etc.). The Market Categories illustrated in this Financial Market Summary are indexes of specific equity, fixed income, or other categories. An index reflects the underlying securities in a particular selection of securities picked due to a particular type of investment. These indexes account for the reinvestment of dividends and other income but do not account for any transaction, custody, tax, or management fees encountered in real life. To that extent, these index numbers are artificial and cannot be duplicated in real life due to the necessity of paying those transaction, custody, tax, and management fees. Industry and specific sector returns (technology, utilities, etc.) do not account for the reinvestment of dividends or other income. Future events will cause these historical rates of return to be different in the future with the potential for loss as well as profit. Specific indexes may change their definition of particular security types included over time. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of Proffitt & Goodson, Inc. Past performance does not guarantee future results.