Fiduciary financial advisor in Bridgeport, CT. For Bridgeport, CT residents who lack the free time, skill, or inclination to handle their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a stable financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Bridgeport, CT, you'll gain a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Bridgeport, CT fiduciary financial advisors will never recommend a product, investment, or plan that we do not truly have faith in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with a member of our advisor team.
Schedule a Meeting With an Advisor Today
Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
Schedule a 15-Minute Introductory Call
What Is a Fiduciary?
A fiduciary is a person or organization that occupies a position of trust and responsibility when handling assets, finances, or legal concerns on behalf of another person. Fiduciaries are legally and ethically bound to operate in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions responsible for handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an obligation to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to act in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Experts who aid clients in purchasing, selling, or renting properties and are required to act in the best interests of their clients in real estate transactions.
Good Faith, Duty of Loyalty, and Duty of Care
There are three important elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any intention to deceive or harm the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must prioritize the beneficiary's interests over their own. They ought to eschew any conflicts of interest that might impair their capability to act exclusively in the client's best interests. Every conflicts of interest must be revealed to the client and the advisor must still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a prudent person would employ in similar circumstances. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty guarantees that they do their best to safeguard and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Bridgeport, CT?
Financial advisors help Bridgeport, CT individuals, families, and business owners achieve their life goals via a array of financial services and proposals. These services include investment strategies, retirement consulting, tax planning, estate planning, portfolio management and more.
Anyone in Bridgeport, CT can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must be registered with the SEC, and is legally required to abide by fiduciary duty, and as a result, must put clients’ interests ahead of their own. They must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications require ongoing education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to follow the CFP Board's Code of Ethics and Standards of Conduct to:
- Act with honesty, integrity, competence, and diligence
- Act in the client’s best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects positively on the financial planning profession and CFP® certification
Are All Financial Advisors in Bridgeport, CT Fiduciaries?
Not all financial advisor in Bridgeport, CT are fiduciaries. The key reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires advice to be suitable for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation open and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation linked to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
The Prudent-Person Rule
Fiduciary financial advisors are required to abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you own
- Your needs for readily available funds, income, and preservation of capital
- An asset's special relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the expected duration of your relationship with the fiduciary financial advisor
Fiduciary Duty vs. Suitability Standard: What’s the Difference?
Advisors who work under the “suitability rule” are only obligated to suggest investment products or financial products that match your goals, while financial advisors with a fiduciary duty must operate in your best interest. Here are some key differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are lawfully and ethically bound to operate in their clients' best interests at all times.
- Client's Best Interest: Advisors must prioritize the client's financial health over their own profit.
- Comprehensive Care: They must disclose all conflicts of interest, ensure transparency, and provide the highest standard of care in their recommendations and actions.
- Regulation: Regulated by the Investment Advisers Act of 1940, which requires that investment advisors have a fiduciary duty to their clients.
- ExamplesInstances: Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNER™ professionals.
Suitability Standard
- Suitability: Advisors merely need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Financial advisors can take into account their own interests as long as the recommendations are appropriate.
- Possible Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
- Governance: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is suitable for the client.
- Examples: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 mandates that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to dealing with a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires financial advisors to act in the client's optimal financial interest. | Mandates financial advisors to suggest suitable products or plans based on provided information. |
| Standard of Care | Higher level of care making sure every action matches with the client's optimal outcome. | Ensures suggestions are appropriate and make sense for the client's situation. |
| Client-Centric Approach | Advisors focus on client's objectives, needs, and preferences above their own. | Financial advisors base suggestions on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is required. | More relaxed disclosure requirements, provided the suggestion is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on reasonable research and analysis. |
| Ongoing Duty | Unceasing duty to act in the client's best interest, necessitating regular reviews and updates. | Stresses the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
| Conflict of Interest | Must disclose and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the suggestion remains suitable. |
| Long-Term Commitment | Advisors have a continuous obligation to oversee and adjust the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Bridgeport, CT
Deciding to work with a fiduciary financial advisor in Bridgeport, CT provides an array of advantages that can profoundly influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold professional standards
- Complete disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Bridgeport, CT family
- Make investments on your behalf by leveraging their expertise to develop and oversee a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a custom approach
- Continuous monitoring and direction to guarantee your financial strategies and investments continue to be in line and that you can modify to any surprises the market or life gives your way
- Diminished risk with prudent and responsible investment choices made by meticulously assessing the risk associated with each investment and modifying your portfolio to align with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations modify
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic financial planning services are created to offer you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to comprehend your unique financial situation and customize strategies that match your life aspirations.
Tailored Financial Roadmap
We begin by performing a detailed analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us create a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Investment Portfolio Management
We create personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team continuously monitors and adjusts your investments to align with your financial goals, making sure that your portfolio remains robust and adaptable to changing market conditions.
Retirement Strategy
Planning for retirement is a foundation of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire securely and with confidence.
Tax Planning
Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are well-versed in tax laws and strategies that can lower your tax liability and enhance your overall financial health.
Estate Planning
We also deliver expert guidance on estate planning to help you preserving your legacy. From wills and trusts to estate tax strategies, we make certain your assets are allocated according to your wishes while minimizing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a once-off event but a ongoing process. We offer ongoing monitoring and periodic reviews to adapt your financial plan to any changes in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly client-centric. We take pride in building long-lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are devoted to helping you attain your financial goals with integrity and excellence.
Other services we offer in Bridgeport, CT include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
- Self-Employed Retirement Plans
Choose Correct Capital as Your Bridgeport, CT Fiduciary Financial Advisor
Choosing a financial advisor in Bridgeport, CT with a fiduciary duty is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Bridgeport, CT individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed to lead you on your financial journey. We provide all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Get in touch with us now at 314-930-401(k) or contact us online to arrange an appointment and discover how we can assist you attain your financial goals in Bridgeport, CT.
