Fiduciary financial advisor in Atlanta, GA. For those in Atlanta, GA who lack the time, expertise, or inclination to manage their investments and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is vital in that partnership, and whether you're planning for retirement, seeking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Atlanta, GA, you'll have a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Atlanta, GA fiduciary financial advisors will never recommend a product, investment, or strategy that we don't genuinely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital today at 314-930-401(k), contact us online, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a role of trust and responsibility when overseeing assets, monetary matters, or legal affairs for someone else. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are serving, 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 are:
- Trustees — Individuals or entities charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People chosen to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of underage individuals or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to work in the best interests of their clients when handling legal matters.
- Real estate agents — Specialists who help clients in buying, 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they engage with their clients or beneficiaries honestly, with sincerity, and without any aim to deceive or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients in mind.
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 ought to eschew any conflicts of interest that could compromise their ability to act solely in the client's best interests. All conflicts of interest must be made known to the client and the advisor needs to still act with the client/beneficiary's interest over 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 employ in the same or similar situations. They must make informed and considered decisions when handling assets or deciding on behalf of their client. This duty guarantees that they strive to protect and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Atlanta, GA?
Financial advisors help Atlanta, GA individuals, families, and business owners attain their life goals through a variety of financial services and suggestions. These services include investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Atlanta, GA can call themselves a "financial advisor," but to say that they're 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 have to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to comply with 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 Atlanta, GA Fiduciaries?
Not all financial advisor in Atlanta, GA are fiduciaries. The primary reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which mandates strategies to be fitting for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation open and reducing conflicts of interest. Other advisors generally receive commissions or different kinds of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors need to abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, 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 subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected return 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 anticipated duration of your relationship with the fiduciary financial advisor
Fiduciary Duty vs. Suitability Standard: What’s the Difference?
Advisors who operate under the “suitability standard” are only required to suggest investment products or financial products that match your objectives, while advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are lawfully and morally bound to operate in their clients' best interests at all times.
- Best Interest: Advisors must focus on the client's financial well-being over their own profit.
- Full Disclosure: They must reveal all conflicts of interest, ensure transparency, and provide the highest level 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 only need to ensure that their recommendations are suitable for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Advisors can consider their own interests as long as the suggestions are suitable.
- Potential Conflicts: Advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
- Governance: Governed by the Financial Industry Regulatory Authority (FINRA), which requires a “reasonable basis” that an investment is appropriate 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 serve in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their recommendations. Here's a summary 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 best financial interest. | Demands financial advisors to recommend appropriate products or strategies based on provided information. |
| Standard of Care | Higher level of care ensuring every action aligns with the client's best outcome. | Guarantees recommendations are proper and make sense for the client's circumstances. |
| Client-Centric Approach | Financial advisors focus on client's objectives, needs, and preferences above their own. | Financial advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is required. | More relaxed disclosure requirements, provided the recommendation is appropriate. |
| Due Diligence | Suggestions based on a comprehensive evaluation of the client's financial situation. | Recommendations based on adequate research and analysis. |
| Ongoing Duty | Unceasing duty to act in the client's best interest, demanding regular reviews and updates. | Stresses the suitability of advice at the time of the recommendation, with minimal focus on ongoing oversight. |
| Conflict of Interest | Must disclose and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
| Long-Term Commitment | Financial advisors have a ongoing obligation to monitor and update the client's financial plan. | Regular reviews are advised, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Atlanta, GA
Choosing to partner with a fiduciary financial advisor in Atlanta, GA offers an array of benefits that can profoundly affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Total disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Atlanta, GA family
- Manage investments on your behalf by employing their expertise to craft and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to devise a personalized approach
- Continuous monitoring and guidance to guarantee your financial strategies and investments remain on track and that you can modify to any curveballs the market or life presents your way
- Reduced risk with wise and judicious investment choices taken by thoroughly assessing the risk associated with each investment and modifying your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends 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 crafted to provide you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to grasp your unique financial situation and customize strategies that suit your life aspirations.
Customized Financial Roadmap
We begin by undertaking a comprehensive analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that meets your short-term needs and long-term objectives.
Investment Portfolio Management
We create 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, ensuring that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
Planning for retirement is a cornerstone of our comprehensive financial planning. We guide you through the complexities of retirement accounts, social security benefits, and income strategies to ensure you can retire with ease and safely.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your family. Our advisors are well-versed in tax laws and strategies that can reduce your tax liability and improve your overall financial health.
Legacy Planning
We also provide expert guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are distributed according to your wishes while minimizing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a one-time event but a continuous process. We deliver ongoing monitoring and regular reviews to adjust your financial plan to any shifts in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is highly client-centric. We pride ourselves on building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are committed to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Atlanta, GA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Atlanta, GA Fiduciary Financial Advisor
Selecting a financial advisor in Atlanta, GA with a fiduciary duty 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 hold in high regard the financial success and peace of mind of Atlanta, GA individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications needed to guide 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.
Reach out to us now at 314-930-401(k) or contact us through our website to set up an appointment and find out more about how we can assist you attain your financial goals in Atlanta, GA.
