We are a Fiduciary
Florin Group is an independently owned RIA firm with fiduciary standards and Accredited Investment Fiduciary (AIF®) designation.
What That Means
As fiduciary financial advisors, we are legally required to act in the best interests of our clients. We do not put our compensation above your portfolio returns, and we are not required to use or invest in certain products or financial instruments. As you might guess, non-fiduciary financial advisors are not legally required to do either.
Formal Definition
A fiduciary is a person or legal entity that has the power and responsibility to act on behalf of the beneficiary in trust, good faith, and honesty. Fiduciaries are fee-based. That means we charge clients a flat or hourly rate, either on a per-service basis or as a percentage of assets under management. We do not earn commissions or trade fees on the investments we recommend.
A Short Story
After living and working overseas, Mark and Mary retired in the DC area to be near their children and grandchildren. They live in a small home in an older neighborhood and, like many retirees, are living on a fixed income.
One of their four children, David, is currently working in France. When he and his family come back to DC to visit, they stay with Mark and Mary. It’s a rather tight squeeze! Mark and Mary have some equity in their home, but not enough to cover a renovation or expansion.
Because David and his wife want to retire in DC one day, we came up with an idea. David could jointly purchase a home with his parents. Mark and Mary would cover the down payment and David would pay the monthly mortgage. David expects to spend his career overseas, and because he works for an international firm, he doesn’t pay US taxes.
During his time abroad, Mark and Mary could claim all the tax credits associated with the house. Everyone was on board with the idea. We consulted an attorney, who drew up documents that would protect both parties in case of a premature death. Seven years later and the family couldn’t be happier.
Mark and Mary love their new home and bigger garden. The house is large enough to host all four children and their families during the holidays. David and his family love having more room for when they come to visit DC.
This story perfectly illustrates the benefits of working with a fiduciary. We did what was best for our clients, not our pocketbook.