Fiduciary financial advisor in Augusta-Richmond County, GA. For those in Augusta-Richmond County, GA who don't have the free time, expertise, or inclination to handle their assets and retirement accounts themselves, partnering with a financial advisor offers peace of mind. Trust is crucial in that relationship, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a stable financial future for your family, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Augusta-Richmond County, GA, you'll have a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Augusta-Richmond County, GA fiduciary financial advisors won't ever suggest a product, investment, or strategy that we don't sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule a meeting with a member of our advisor team.
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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.
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What Is a Fiduciary?
A fiduciary is a individual or organization that maintains a role of trust and responsibility when overseeing assets, monetary matters, or legal concerns for another. Fiduciaries are legally and ethically committed to work in the best interests of the individual or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or entities charged with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an obligation to prioritize 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 appointed by the court to make decisions on behalf of minors or people who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to act in the best interests of their clients when dealing with legal matters.
- Real estate agents — Experts who assist clients in buying, selling, or renting properties and are expected 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 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 honestly, with genuine intention, and without any intention to mislead or harm 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, which means they must prioritize the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might jeopardize their capability to act solely in the beneficiary's best interests. Any conflicts of interest must be made known to the client and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a prudent person would use in similar circumstances. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they do their best to protect and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Augusta-Richmond County, GA?
Financial advisors help Augusta-Richmond County, GA individuals, families, and business owners achieve their life goals by means of a range of financial services and suggestions. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in Augusta-Richmond County, GA can give themselves the title of "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. Achieving and keeping these certifications necessitate persistent education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Augusta-Richmond County, GA Fiduciaries?
Not all financial advisor in Augusta-Richmond County, GA are fiduciaries. The main reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands recommendations to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation clear and limiting conflicts of interest. Other advisors generally receive commissions or other forms of compensation tied 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 must abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor select investments that a sensible person would purchase from 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 subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- Your needs for liquidity, income, and preservation of capital
- An asset's unique relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the estimated 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 obligated to suggest investment products or products that match your objectives, while financial 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 ethically bound to operate in their clients' best interests at all times.
- Client's Best Interest: Financial 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 advice and actions.
- Governance: Governed by the Investment Advisers Act of 1940, which mandates 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.
- Lower Standard of Care: Financial advisors can consider their own interests as long as the recommendations are appropriate.
- Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
- Governance: Regulated by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is suitable for the client.
- Instances: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 requires that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their suggestions. Here's a summary of what those terms mean in relation to managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires financial advisors to act in the client's best financial interest. | Requires financial advisors to recommend suitable products or strategies based on provided information. |
| Standard of Care | Higher level of care making sure every action aligns with the client's optimal outcome. | Makes certain suggestions are suitable and make sense for the client's situation. |
| Client-Centric Approach | Advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is mandated. | Less stringent disclosure requirements, so long as the recommendation is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Recommendations based on adequate research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, demanding 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 manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the suggestion remains suitable. |
| Long-Term Commitment | Advisors have a ongoing obligation to monitor and update the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Augusta-Richmond County, GA
Choosing to partner with a fiduciary financial advisor in Augusta-Richmond County, GA offers an array of benefits that can deeply affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Full disclosure of essential materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Augusta-Richmond County, GA family
- Handle investments on your behalf by employing their expertise to create and handle a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to devise a custom approach
- Ongoing monitoring and advice to guarantee your financial plans and investments continue to be in line and that you can adapt to any curveballs the market or life presents your way
- Minimized risk with prudent and accountable investment choices made by meticulously assessing the risk associated with each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life situations modify
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing financial planning services are created to provide you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to comprehend your unique financial situation and tailor strategies that suit your life aspirations.
Personalized Financial Roadmap
We begin by undertaking a detailed 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, balancing your risk tolerance with your time horizon. Our team consistently monitors and adjusts your investments to align with your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
Planning for retirement is a key element 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 comfortably and with confidence.
Tax Planning
Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can lower your tax liability and boost your overall financial health.
Legacy Planning
We also provide expert guidance on estate planning to assist you in protecting your legacy. From wills and trusts to estate tax strategies, we make certain your assets are passed on according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a single event but a continuous process. We provide ongoing monitoring and periodic reviews to adjust your financial plan to any shifts in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly client-centric. We take pride in building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are committed to helping you attain your financial goals with integrity and excellence.
Other services we offer in Augusta-Richmond County, GA include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Augusta-Richmond County, GA Fiduciary Financial Advisor
Choosing a financial advisor in Augusta-Richmond County, GA with a fiduciary standard is vital to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Augusta-Richmond County, GA 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 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.
Get in touch with us now at 314-930-401(k) or contact us online to schedule an appointment and discover how we can aid you attain your financial goals in Augusta-Richmond County, GA.
