Not all advisers are fiduciaries. If your financial adviser doesn’t have a fiduciary duty to you, they may be able to recommend investments or products that pay them a more significant commission or fees over ones that would be the best fit for you.
Fiduciaries have a bond of trust with clients and must avoid conflicts of interest. Financial advisers and planners who are fiduciaries must only buy and sell investments that best fit their clients.
This creates a problematic situation for you, the investor. How do you know whom to trust? How do you recognize a fiduciary when you see one?