Brokers and other advisers are often held to what’s called a suitability standard — meaning the investments they recommend just have to be “suitable,” not necessarily the best option for you.
But RIAs? They’re bound by the fiduciary standard. That means:
They must avoid conflicts of interest.
They must disclose any fees, compensation, or relationships that could influence their advice.
They are legally accountable if they fail to act in your best interest.
It’s like choosing between a salesperson at a store and a personal shopper who only gets paid when you’re happy.
