You might have heard the “Fiduciary Rule” in headlines lately. The Obama Administration made plans to implement it this year, but the Trump Administration recently delayed it. So what exactly is a fiduciary and why should you care? This video breaks it down.

In basic terms, a fiduciary someone who handles your money and takes an oath to only offer advice that works in your best interest. Certified Financial Planners (CFPs) take a fiduciary oath, for example. The problem is, not all financial advisors are fiduciaries. The new rule would have forced anyone who handles your retirement investments to stick to the same standards fiduciaries use.

Like CFPs, brokers handle your investments and savings, but there’s a hugely important distinction between the two, and this video does a great job of breaking down the difference by comparing butchers to nutritionists. In short:

“Butchers are brokers selling product, fiduciaries are dieticians looking after your health.”

Butchers might push the best meat the have available, and it might be great meat, but that doesn’t necessarily mean it’s going to be good for you in the long run. Nutritionists are more interested in your overall health, not just what products they have on hand (because they don’t sell product). Check out the video for yourself above, and you can read more about fiduciaries at the New York Times link below.

Brokers vs. Fiduciaries | HighTower Advisors via The New York Times