Fiduciary financial advisor in Akron, OH. For those in Akron, OH who lack the time, expertise, or interest to oversee their assets and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Akron, OH, you'll gain a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Akron, OH fiduciary financial advisors will never suggest a solution, investment, or plan that we do not sincerely trust in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a position of confidence and duty when handling assets, finances, or legal affairs on behalf of another. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — People or entities tasked with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or individuals who are unable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals who help 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with genuine intention, and without any aim to deceive or damage the interests of their beneficiaries. They must continually act honestly and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests over their own. They should avoid any conflicts of interest that might impair their capacity to act only in the client's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor has to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a prudent person would apply in comparable circumstances. They must make informed and considered decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to shield and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Akron, OH?
Financial advisors help Akron, OH individuals, families, and business owners attain their life goals by means of a array of financial services and proposals. These services include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Akron, OH 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. Achieving and retaining these certifications require persistent education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must adhere to 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 Akron, OH Fiduciaries?
Not all financial advisor in Akron, OH are fiduciaries. The key reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands advice to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds of compensation associated with product sales, which means you can't be sure that their recommendations are 100% for your benefit.
The Prudent-Person Rule
Fiduciary financial advisors need 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 know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase considering an acceptable risk in light of the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- Your needs for liquidity, 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 standard” are only required to suggest investments or financial products that align with your goals, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Legal Obligation: Fiduciary financial advisors are lawfully and morally obligated to act in their clients' best interests at all times.
- Client's Best Interest: Advisors must focus on the client's financial well-being over their own profit.
- Full Disclosure: They must disclose all conflicts of interest, ensure transparency, and deliver the highest standard of care in their recommendations and actions.
- Oversight: 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
- Appropriateness: Financial advisors merely need to ensure that their recommendations are suitable for the client’s financial requirements and objectives at the time of the transaction.
- Lower Standard of Care: Financial advisors can consider their own interests as long as the recommendations are suitable.
- Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
- Regulation: Regulated 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 stipulates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to handling a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires advisors to act in the client's optimal financial interest. | Mandates financial advisors to recommend suitable products or plans based on available information. |
| Standard of Care | Elevated level of care making sure every action conforms with the client's optimal outcome. | Makes certain suggestions are proper and make sense for the client's circumstances. |
| Client-Centric Approach | Financial advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base recommendations on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is required. | Looser disclosure requirements, provided the recommendation is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Recommendations based on reasonable research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, demanding regular reviews and updates. | Emphasizes the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
| Conflict of Interest | Must disclose and manage conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
| Long-Term Commitment | Advisors have a ongoing obligation to oversee and adjust the client's financial plan. | Regular reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Akron, OH
Choosing to partner with a fiduciary financial advisor in Akron, OH offers an array of benefits that can deeply influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Akron, OH family
- Handle investments on your behalf utilizing their expertise to develop and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic 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 tactics and investments continue to be in line and that you can modify to any surprises the market or life presents your way
- Reduced risk with sensible and judicious investment choices taken by meticulously assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being looked after by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive 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 adapt strategies that align with your life aspirations.
Personalized Financial Roadmap
We begin by undertaking a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Financial Portfolio Management
We craft personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team continuously monitors and adjusts your investments to meet your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
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 ensure you can retire securely and safely.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your family. Our advisors are expert in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to help you preserving your legacy. From wills and trusts to estate tax strategies, we ensure your assets are distributed according to your wishes while reducing tax burdens.
Continuous Oversight
Financial planning is not a one-time event but a continuous process. We provide ongoing monitoring and regular reviews to adjust your financial plan to any changes in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is highly client-centric. We take pride in building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are dedicated to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Akron, OH include:
Choose Correct Capital as Your Akron, OH Fiduciary Financial Advisor
Choosing a financial advisor in Akron, OH with a fiduciary standard is crucial to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Akron, OH residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary to lead you on your financial journey. We offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Reach out to us now at 314-930-401(k) or contact us through our website to arrange an appointment and discover how we can aid you achieve your financial goals in Akron, OH.
