Minnesota Fiduciary Financial Planning
Fiduciary Financial Advisor in Minnesota
A fiduciary financial advisor is legally required to act in your best interest at all times — not just at the moment of a transaction. At New Horizons Boutique Financial Services, our Series 65 and Series 66 registrations establish that obligation for every client relationship we accept.
Schedule a ConsultationWhat Fiduciary Means
The Legal Standard Behind the Word
A fiduciary financial advisor is a Registered Investment Adviser (RIA) or Investment Adviser Representative who is legally obligated to prioritize your interests above their own — on an ongoing basis, not just at the point of a sale. This standard originates from the Investment Advisers Act of 1940 and is enforced at both the federal (SEC) and state level.
In practice, fiduciary duty means three things: the advisor must disclose material conflicts of interest in writing (typically via Form ADV), recommend only strategies aligned with your goals rather than their compensation, and seek best execution when applicable. It does not eliminate all conflicts — but it requires they be disclosed and managed, not ignored.
In Minnesota, Investment Adviser Representatives must register with the Minnesota Department of Commerce and hold qualifying credentials — most commonly the FINRA Series 65 or the combination of Series 66 plus Series 7. At New Horizons Boutique Financial Services, Lars Engman, MBA and Alec Engman (B.S. Economics, University of Minnesota) hold Series 65 and Series 66 registrations, establishing the fiduciary standard for all investment advisory services we provide.
What Fiduciary Duty Requires
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1
Disclose conflicts of interest
In writing, via Form ADV, before and during the engagement
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2
Put your goals first
Recommendations must reflect your situation, not advisor compensation
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3
Maintain ongoing suitability
The obligation applies throughout the relationship, not just at one transaction
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4
Seek best execution
Where applicable, act to get the most favorable outcome for your transactions
Fiduciary vs. Broker
Two Different Legal Standards
The distinction between a fiduciary advisor and a broker is not a matter of title or marketing — it is a difference in the legal obligation owed to you.
| Feature | Fiduciary Advisor (RIA) | Broker (Broker-Dealer Rep) |
|---|---|---|
| Legal Standard | Fiduciary — ongoing duty to act in client's best interest | Reg BI — best interest at point of recommendation only |
| Regulator | SEC or state securities regulator (MN Dept. of Commerce) | FINRA |
| Required Disclosure | Form ADV — fees, conflicts, services, disciplinary history | Form CRS — relationship summary |
| Compensation Model | Advisory fees; structure disclosed upfront | Commissions, markups, or fees — varies by firm |
| Conflict Management | Must disclose and manage conflicts throughout relationship | Must disclose conflicts at point of transaction |
| How to Verify | SEC IAPD or FINRA BrokerCheck — look for RIA registration | FINRA BrokerCheck |
Note: some professionals hold dual registrations. Always review the advisor's Form ADV and Form CRS to understand the capacity in which they are acting for your account.
Our Credentials
How to Verify Fiduciary Status in Minnesota
Minnesota investors can verify any advisor's registration status through two official sources: the SEC's Investment Adviser Public Disclosure database (IAPD) at adviserinfo.sec.gov, and FINRA BrokerCheck at brokercheck.finra.org. Look for registration as an Investment Adviser Representative (IAR) — that is the credential that establishes fiduciary status under state and federal law.
FINRA Series 65
Uniform Investment Adviser Law Examination — establishes investment adviser representative registration and fiduciary status
FINRA Series 66
Uniform Combined State Law Examination — combined securities agent and investment adviser representative registration when paired with Series 7
Master of Business Administration
Lars Engman holds an MBA providing advanced business, finance, and strategic planning education
B.S. Economics
Alec Engman holds a B.S. in Economics from the University of Minnesota, providing a rigorous analytical foundation
Minnesota Context
Why Fiduciary Matters More in Minnesota
Minnesota's tax environment adds a layer of complexity that makes advisor alignment especially consequential. The state taxes most retirement income — including Social Security for higher earners, traditional 401(k) and IRA distributions, and most pension income — at rates up to 9.85% as of 2026. It also imposes an estate tax starting at approximately $3 million, far below the 2026 federal threshold.
In this environment, the difference between an advisor who is legally obligated to optimize your after-tax outcome and one who is primarily compensated by commissions on products can be material. A fiduciary advisor builds strategy around your complete financial picture — income, taxes, withdrawals, insurance, and estate exposure — before recommending any specific product or solution.
New Horizons serves professionals and executives across Minnesota, including the east Twin Cities communities of Lake Elmo, Stillwater, and Woodbury. If you are looking for a fiduciary financial advisor in the east Twin Cities, our team serves clients throughout that corridor. For those exploring fee-transparent advisory structures, see our overview of working with a fee-only financial advisor in Woodbury.
Minnesota Income Tax on Retirement Income
Minnesota taxes 401(k) and IRA distributions as ordinary income at rates up to 9.85% as of 2026, according to the Minnesota Department of Revenue. Social Security benefits are taxable for higher-earning retirees. A fiduciary advisor accounts for this in your withdrawal and Roth conversion strategy.
Minnesota Estate Tax Threshold
Minnesota's estate tax exemption is approximately $3 million per individual as of 2026 — well below the federal threshold. Professionals with accumulated assets may be exposed to state estate tax even when their federal exposure is minimal.
MN Department of Commerce Registration
Investment Adviser Representatives in Minnesota register with the Minnesota Department of Commerce. You can verify any advisor's registration status at mn.gov/commerce or through the SEC's IAPD database. Always confirm registration before engaging an advisor.
Our Approach
Strategy Before Products
Fiduciary status is the legal foundation. Strategy-first is how we build on it. No recommendation is made until we have a complete picture of your financial situation.
Comprehensive Discovery
We analyze your complete financial picture: assets, income, expenses, tax situation, insurance coverage, and estate planning needs — before forming any recommendations.
Integrated Strategy
We build a cohesive plan covering investments, taxes, retirement income, cash flow, debt, insurance, and estate planning. Each element is designed to work together, not in isolation. See how this applies to tax planning for high-income individuals and financial independence planning.
Ongoing Partnership
Quarterly reviews keep your strategy aligned with changing life circumstances, tax law updates, and evolving goals. Our boutique model means every client works directly with their advisor throughout the relationship.
Who We Serve
Minnesota Professionals Who Benefit Most from a Fiduciary Advisor
Executives Nearing Retirement
Professionals managing complex compensation — deferred compensation, stock options, and pension coordination — need an advisor whose legal obligation runs to them, not to a product manufacturer. A fiduciary advisor builds a retirement transition strategy around your complete picture. Learn more about working with a financial advisor for professionals seeking clarity.
Business Owners Planning an Exit
A business sale is often the largest financial event in an owner's life. The tax implications, income replacement strategy, and transition to financial independence require an advisor who is obligated to optimize for your outcome — not for transaction volume.
Professionals Seeking Clarity
Many professionals arrive without a coherent financial strategy — assets scattered across accounts, no coordinated tax plan, and uncertainty about whether they are truly on track. A fiduciary advisor's obligation to put your interests first makes them the right starting point for building that clarity.
People Pursuing Financial Independence
Financial independence is not a product — it is a strategy. Reaching it requires coordinated planning across income, investments, taxes, and spending. A fiduciary advisor's ongoing obligation means your plan stays aligned with your goals as both change over time.
Frequently Asked Questions
Fiduciary Financial Advisor Questions
What does fiduciary mean for a financial advisor?
Fiduciary means the advisor is legally required to act in your best interest — not just at the moment of a recommendation, but throughout the entire advisory relationship. This obligation originates from the Investment Advisers Act of 1940 and applies to Registered Investment Advisers and their representatives. It requires disclosure of conflicts of interest, recommendations aligned with your goals rather than advisor compensation, and ongoing suitability — not just transactional suitability. The fiduciary standard does not eliminate all conflicts, but it requires they be disclosed and managed.
How is a fiduciary advisor different from a broker in Minnesota?
A fiduciary advisor (RIA or IAR) is held to an ongoing best-interest standard under the Investment Advisers Act of 1940, registered with the SEC or the Minnesota Department of Commerce, and required to disclose conflicts via Form ADV. A broker is registered with FINRA and held to the SEC's Regulation Best Interest standard, which applies at the point of a recommendation but does not impose the same ongoing, relationship-wide obligation. Some professionals hold dual registrations — always review their Form ADV and Form CRS to understand which capacity they are acting in for your account. For a deeper comparison of these two standards, see our guide on whether a fiduciary better than a broker for your situation.
How do I verify if a financial advisor is a fiduciary in Minnesota?
You can verify any advisor's registration status through two official sources: the SEC's Investment Adviser Public Disclosure (IAPD) database at adviserinfo.sec.gov, and FINRA BrokerCheck at brokercheck.finra.org. Look for registration as an Investment Adviser Representative (IAR). You can also contact the Minnesota Department of Commerce directly. Ask any advisor you are considering to confirm in writing whether they act as a fiduciary for your account, in what capacity, and at all times.
Does New Horizons Boutique Financial Services act as a fiduciary?
Our advisors hold FINRA Series 65 and Series 66 registrations as Investment Adviser Representatives, which establishes the fiduciary standard for investment advisory services. Lars Engman (MBA) and Alec Engman (B.S. Economics, University of Minnesota) are the primary advisors at New Horizons. As required by law, our Form ADV discloses our fees, services, conflicts of interest, and other material information. We encourage all prospective clients to review it before engaging our services.
What services does a fiduciary financial advisor in Minnesota provide?
A fiduciary financial advisor typically provides comprehensive financial planning and investment advisory services — including retirement strategy, tax optimization planning, wealth management, financial independence planning, and business owner exit planning. At New Horizons, every engagement begins with a full financial strategy covering income, taxes, investments, cash flow, insurance, and estate planning before any specific recommendations are made. Services are tailored to each client's situation; no two plans are built from the same template.
Get Started
Schedule a No-Cost Initial Consultation
Our initial conversation is designed to help you understand where you stand today and whether our approach is the right fit for your situation. No cost, no obligation, no sales pressure.
Serving Lake Elmo, Stillwater, Woodbury, Arden Hills, Apple Valley, Anoka, Andover, Albertville, and the broader Twin Cities metro area.