It is not uncommon for people considering Almega Wealth Management to ask whether we serve as a fiduciary. The answer is yes—yet the word “fiduciary” gets used so casually in our industry, it begins to lose meaning. Less than 5% of financial professionals are True Fiduciaries.
A fiduciary is a person or firm with a legal duty to act in a client’s best interest and to place the client’s interest ahead of the advisor’s. In plain English: a fiduciary sits on your side of the table.
Why the “less than 5%” claim is more than marketing
The numbers below quantify how rare “true fiduciary” advice remains.
- There are 834,000 financial professionals in the U.S. according to a 2023 Bureau of Labor Statistics Report
- 513,000 sales agents working for Merrill Lynch, Schwab, Vanguard, Fidelity, etc.
- 321,000 financial advisors providing financial planning and investment advice.
- Of the 834,000 total, only 77,468 are listed as Investment Advisor Representatives (individuals working for Registered Investment Advisors) according to a 2022 FINRA report.
- Investment News found that 47% of Investment Advisor Representatives receive commissions, leaving only 41,058 (less than 5% of all financial professionals are True Fiduciaries) who are compensated solely by their clients.
“Best interest” is not always “fiduciary”
Here is where consumers get ambushed by vocabulary.
Registered Investment Advisors and their Investment Advisor Representatives generally operate under a fiduciary standard rooted in the Investment Advisers Act—commonly described as a duty of care and a duty of loyalty.
Broker-dealers, by contrast, operate under Regulation Best Interest when making recommendations to retail customers. Reg BI is meaningful, yet it is not the same framework as an adviser’s ongoing fiduciary obligation.
If fiduciary duty resembles a physician managing a chronic condition over time, Reg BI resembles an urgent-care visit: serious, regulated, and often helpful—yet narrower in scope and anchored to a specific recommendation.
Fee-only: the compensation test most people skip
Conflicts do not require villainy. They only require incentives.
A fee-only model generally means the advisor receives compensation directly from clients—without commissions tied to product implementation. Organizations such as NAPFA describe fee-only as the most transparent structure and require members to accept no commissions (including compensation flowing to related parties).
This matters because compensation works like gravity: always present, always pulling. A prudent family does not hire a “quarterback” whose paycheck depends on which play gets called.
How to tell whether an advisor is a true fiduciary
If you remember nothing else from this article, remember this: do not ask only “Are you a fiduciary?” Ask questions requiring proof. Remember, less than 5% of financial professionals are True Fiduciaries so you must ask questions to understand how they are compensated.
Here are a few practical prompts:
“How are you paid—fee-only, fee-based, commissions, or a combination?”
“Do you have an insurance license? …when you sell an insurance product, do you receive a commission?”
“Will you provide your Form ADV (Part 2A and 2B)?” …this document will provide information on how the Registered Investment Advisors and its Investment Advisor Representatives are compensated
“Do you, or any related party, receive commissions or incentives from insurance or investment products?”
“Are you dual-registered as both an investment adviser representative, insurance agent, and/or a broker?” (Dual registration is common; it simply deserves clarity.)
If the answers feel slippery, you are not “being picky.” You are being appropriately careful with a decision that can shape decades of outcomes. Remember, less than 5% of financial professionals are True Fiduciaries. Those who aren’t don’t like to disclose that they receive commissions because it dilutes the value of the advice they give. Unfortunately, today, within the financial industry, there is a massive consolidation occurring; independent Registered Investment Advisors who have historically operated as True Fiduciaries are being bought up by private equity-backed firms that only care about their bottom line and the rate of return provided to their investors.
Where Almega Wealth Management fits
Almega Wealth Management is a Fee-Only Fiduciary firm. It serves clients in a true fiduciary capacity. Our compensation comes only from clients, not product providers. Additionally, our President, Bryan Wisda, is a member of the National Association of Personal Financial Advisors (NAPFA) and serves on its Western Regional Board, and Almega Wealth Management is a member of the Institute for the Fiduciary Standard.
If you want help pressure-testing an existing relationship—or simply want a second set of eyes—schedule an exploratory call. You will leave with more clarity than you started with, even if we never work together.
Disclosure: This article is educational and general in nature. It is not individualized investment, tax, or legal advice.