Login | May 12, 2026
Fiduciaries, Explained
Motley Fool
Published: May 12, 2026
Q. What does it mean to hold a financial adviser to the "fiduciary" standard? -- E.M., Flint, Michigan
A. A financial adviser who is a fiduciary is required to make decisions or recommendations that are in your best interest, not theirs. They must also disclose any conflicts of interest and, generally, how they're compensated.
Some financial advisers may only follow a "suitability" standard, recommending or doing whatever is suitable for their clients. That may sound fine, but what's suitable isn't necessarily what's best. They may be recommending something that will earn them a sales commission, while not mentioning something better that offers no commission. A non-fiduciary adviser might even recommend the least suitable option out of all suitable ones. (Of course, plenty of non-fiduciary advisers are ethical and may serve you well.)
Registered Investment Advisers (RIAs) and Certified Financial Planners (CFPs) are among those generally held to the fiduciary standard. According to the National Association of Personal Financial Advisors, "It's estimated that non-fiduciary advice costs investors up to $17 billion a year."
Q. What are "bulls" and "bears," financially speaking? -- E.L., Bremerton, Washington
A. The terms refer to the optimists and pessimists among investors. A "bull" expects an investment to perform well (is "bullish" on it) and may buy or own shares. Bears, on the other hand, expect falling values ahead, so are likely to steer clear. They may even "short" a stock -- aiming to profit by buying high and selling low.
Of course, while many take bullish or bearish positions, no one really knows how the stock market or any individual stock will perform over the short term. Over the long term, though, the stock market has always gone up.
Fool's School
How Long To Keep Documents
Many, if not most, of us accumulate a lot of financial documents. It's often best to use a shredder when you're disposing of them, but certain kinds of documents should be kept for certain periods. Here are some categories and examples, from the Federal Trade Commission (FTC) and elsewhere:
Keep forever: Birth and death certificates; adoption records; marriage licenses and divorce decrees; Social Security cards; current passports, citizenship or residency documentation; military records; retirement plan information (including pensions and annuities); legal documents such as wills, health care proxies and powers of attorney; and important health records.
Keep while you own them: Titles to vehicles, homeownership documents, mortgage or loan documents, rental agreements and leases, insurance policies, brokerage statements with your cost bases for investments, home improvement receipts, and receipts and warranties for major appliances.
Keep for at least three years: Income tax returns, for most people. Self-employed folks and those at risk of being accused of filing fraudulent returns, along with those who claim losses from bad debts or worthless securities, are among the people who should hang on to tax returns longer. (You can get the skinny at IRS.gov.) Along with your returns, keep supporting documents such as W-2 forms, 1099 forms, canceled checks and receipts for claimed purchases. Three years is also a good guideline for paperwork tied to the sale of a former home.
Keep for one year: Pay stubs, bank statements, credit-card statements, utility bills and undisputed hospital or medical bills. (The FTC notes that if you can access any of these online, you can get rid of the paper copies.)
Most other documents can be shredded (or cut up). These include ATM receipts, offers of credit or insurance, credit reports and expired warranties, as well as expired driver's licenses, other forms of identification and credit cards. Basically, you don't want to toss into the trash any document with identifying or financial information on it, lest it fall into the wrong hands.
My Dumbest Investment
You Only Live Once
My most regrettable investing move was putting all our savings into growth stocks in 2021. Why? YOLO -- you only live once. -- N.L., online
The Fool responds: In 2021, the S&P 500 index of 500 of America's biggest companies gained nearly 29%, so many investors were seeing great growth from their shares. As you know, the story was different in 2022, when the market pulled back by 18%. You may have also noticed that growth stocks tend to fall harder than other types in market downturns.
In 2022, for example, shares of Apple dropped by nearly 27%, and Amazon.com shares plunged by nearly 50%. (In contrast, shares of Walmart dropped by 2% in 2022, while Coca-Cola shares actually gained over 7%.) Savvy long-term investors aim to hang on to their shares for years, through ups and downs.
From January 2021 to January 2026, the S&P 500 gained nearly 83%, averaging annual growth of 12.8%. Since we can't know what the market will do from year to year, it's best to only invest in the market or in strong individual stocks with dollars we won't need for at least five if not 10 years -- and to hang on through downturns.
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots back to 1971, when my first location, with a name inspired by "Moby-Dick," opened in Seattle's Pike Place Market. In 1982, I hired an executive who left in 1985 to open coffee and espresso bars -- and who (with other investors) bought me in 1987. I had 33 stores in 1988, 425 in 1994 and 1,886 in 1998. Today, with a recent market value of $112 billion, I boast more than 41,000 company-operated and licensed coffeehouses. I introduced lattes in 1984 and pumpkin-spice lattes in 2004. My magazine Joe, launched in 1999, bombed. Who am I?
Last Week's Trivia Answer
I trace my roots back to 1964, when my founders launched Blue Ribbon Sports, planning to import and sell running shoes from Japan. One of the fellows learned how to make shoes and started developing prototypes of better running shoes. Later, an artist charged $35 to design a stripe for the shoe brand. Today, I'm based in Beaverton, Oregon, and have a recent market value topping $65 billion. I'm home to the Converse and Jordan brands, along with my own flagship brand name -- which is also the name of the Greek goddess of victory. Who am I? (Answer: Nike)
The Motley Fool Take
A Promising Transformation
Respected and established Canadian company Brookfield Corporation (NYSE: BN) is undergoing a major transition, aiming to operate more like Berkshire Hathaway and Berkshire's "clone" Markel -- insurance businesses with a unique focus on investing, funded in part by the premiums they collect. This approach has been highly successful for both of the latter companies.
Brookfield's goal is to grow distributable earnings by 20% or more per year over the next five years. That's a tall order, and one that investors should watch closely. If Brookfield succeeds, it will likely beat the market.
The company focuses on investing in five categories: infrastructure, renewable power, real estate, private equity and credit. These are all areas that it believes will be important for global growth for years to come. And as it has a presence in over 50 countries worldwide, its foundation for growth is strong.
Brookfield has multiple growth drivers, including its rapidly expanding wealth solutions division, its leading global asset management business, and its strong portfolio of operating companies. Brookfield is also interested in taking advantage of global megatrends, including artificial intelligence (AI) infrastructure, giving it a long growth runway. (The Motley Fool owns shares of and recommends Brookfield Corporation. Note that there are some similarly named companies, so specify correctly if you buy.)
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