What you get is a load of financial advisors who may or may not have your best interests at heart. In fact, they may not even request payment directly from you, providing the illusion of trust. But their income has to come from somewhere – and it comes in the form of sales commissions from the products they sell, such as mutual funds and bonds. They are salespeople, first and foremost.
But it’s not even that the mutual fund would be a bad choice in the long run – it will probably become a good investment in 10 or 20 years. But for you, it’s already too late. And your Financial Advisor went home with a pretty penny the same day of the sale!
A fiduciary, simply put, means someone who acts in the best interest of someone else, and not in their own best interests.
A Fiduciary Financial Advisor would have taken everything into account and asked many questions as to when and for what reason you need your Return on Investment. In this case, considering you need college money in a few years, a Fiduciary would perhaps choose an investment vehicle with a much shorter investment horizon and a guaranteed high-yield rate of return – a CD, for example. A $10,000 investment into a 3-year CD with an interest rate of 2.5% will land you an extra $768, the perfect amount for a brand new set of textbooks.