Semper Fidelis and Fiduciary Duty: Two Phrases, One Commitment
I was 16, with a few weeks left in my junior year of high school, when I signed my delayed-entry papers with the Marine Corps. About 13 months later, three weeks after my 18th birthday, I left for boot camp.
I was legally a child when I signed up. It seems obvious now that I didn't fully understand what I'd signed up for. I knew it was a commitment, and as I've written elsewhere about this, I knew the three things I wanted from it: challenge, discipline, experience. Boot camp taught me it wasn't just something I'd signed up for. It was a promise, and the Marine Corps has a Latin phrase for that: Semper Fidelis.Always faithful.
Why November 10th Still Matters to Me
On November 10, 1775, the Continental Congress authorized two battalions of Marines. Tradition holds that the first recruits signed up at Tun Tavern in Philadelphia. Just imagine: men signing their enlistment papers in a bar. Honestly, it's not all that difficult to imagine...
Anyhow, this year marks the Marine Corps' 251st birthday.
Every year, Marines around the world mark the day. Some gather at formal birthday balls. Some share a slice of cake wherever they're stationed. A lot of us who've been out for years still reach out to the people we served with.
It's been a long time since I wore the uniform. I know for a fact it doesn't quite fit right now. The Marine Corps motto sticks with me, though, and it shapes how I think about my work today. To every Marine who might read this: happy birthday, and Semper Fi.
Semper Fidelis and Fiduciary Come From the Same Word
Here's something I didn't learn until I got into this profession. Fidelis and fiduciary share a Latin root, fid-, tied to faith and trust.
Semper Fidelis means always faithful. A fiduciary is someone trusted to act in another person's best interest. Same root, same commitment.
What That Commitment Looks Like in Retirement Planning
In retirement planning, the word fiduciary carries real weight. When I provide advisory services, I'm held to a fiduciary standard. That means I'm expected to put your interests ahead of my own, disclose conflicts, and give advice that fits your situation.
Most of the households we serve are between the ages 60 and 70. For them, that commitment shows up in specific decisions we help with: when to claim Social Security, which PERS retirement option to choose, which accounts to draw income from first, how to manage taxes across a retirement that could last 25, 30 - or even more years.
Many of these decisions are hard to undo. A Social Security claiming choice can affect a surviving spouse's income for decades. A PERS option election is generally locked in once payments begin. Choices like these call for an advisor who sits on your side of the table every time.
I think of my role as a guide on a path. I've walked the path alongside hundreds of households. You may be walking it for the first time. Part of my job is to point out the turns before you reach them.
Know Your People
One of the Marine Corps leadership principles is simple: know your Marines and look out for their welfare. A good leader can't do that from a distance. They learn who their people are, what they're carrying, and what they need. And you may have heard these: "lead from behind" and "leaders eat last." Both mantras emphasizing the importance of putting the team's needs ahead of the leader's needs, and offering the leader the perspective of the whole team, rather than leading from up front and not really knowing if everyone else is keeping up (or seeing whether their needs are being met).
Retirement planning works the same way. Knowing your investments in your portfolio might tell me what you own. Whether you might have enough to retire and not run out of money. But just knowing your portfolio can't tell me that you want to retire before your spouse, that you're helping an aging parent, that you've put off the PERS paperwork for two years, or why you want to start Social Security the moment you turn 62, (or whether delaying is an option). Knowing the whole household - your goals, your priorities, what's driving the desire to retire - may lead to better advice.
Steps You Can Take This Week
- Ask your advisor when they act as a fiduciary. Find out whether the standard applies to all the advice you receive or only part of it.
- Ask how your advisor gets paid. Fees, commissions, or both. A clear answer can tell you a lot about the relationship.
- Make sure your plan covers your whole household. That includes your spouse's benefits, any pension or PERS decisions, and the income you'll need each year.
- If you served, gather your paperwork. Bring your DD-214 and any military retirement or VA benefit statements to your next planning conversation, so they're part of the picture.
- Put your next review on the calendar. A plan helps most when someone keeps it current.
I made a promise at 16 that I still take seriously. I make a similar promise to every household we work with. If you'd like to talk about where your retirement plan stands, I'd be glad to help.
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The opinions contained in this material are those of Phillip Smith, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Wealth Services, LLC cannot guarantee or represent that it is accurate or complete. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. For a comprehensive review of your personal situation, always consult with a financial, tax or legal advisor. Neither Cetera nor any of its representatives may give legal or tax advice.