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7 Signs You’re a Great Fiduciary

It’s simple: Being a great fiduciary is a lot like being a great decision-maker. What matters most to the DOL and the courts is that a fiduciary is able to show the details of the decision-making processes, and that that process is:





  • in the best interests of participants;



  • inclusive of genuinely accepted investment management theory; and



  • reflective of industry best practices. 


So, what are the 7 signs you’re a great fiduciary? 





1. Courage: You know you’re a great fiduciary when you’re able to develop long-term strategies, and you have the courage to evaluate events calmly against the backdrop of uncertainty.




2. Commitment: You know you’re a great fiduciary when you’re able to develop a consensus for your client’s goals and objectives.




3. Understanding: You know you’re a great fiduciary when you’re able to assess your strengths and weaknesses and determine when delegation and outsourcing is appropriate.




4. Vision: You know you’re a great fiduciary when you’re able to identify and prioritize strategic issues. Focus first on determining the right things to do (such as creating “retirement income security”), then prioritize what needs to be accomplished.




5. Direction: You know you’re a great fiduciary when you’re able to provide clear guidance to staff, money managers and service providers.




6. Patience: You know you’re a great fiduciary when you’re able to maintain a macro/portfolio view, and avoid the lure of hot investment trends and products.




7. Discipline: You know you’re a great fiduciary when you’re able to follow through, and hold yourself and other responsible parties accountable.





You see? Simple. Clients will get the fact that you’re a great fiduciary. 





Don Trone, Mary Lou Wattman and Rear Admiral Steve Branham, USCG (retired) are the co-founders of 3ethos. Their research and training programs are focused on the intersection between leadership, stewardship and governance. Don and Mary are the co-authors of the recently released book, LeaderMetrics®: What Key Decision-makers Need to Know When Serving in a Critical Leadership Role



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