Fiduciary financial advisor in Belleville, IL. For Belleville, IL residents who lack the time, expertise, or inclination to manage their assets and retirement accounts on their own, 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 planning for retirement, seeking to grow your wealth, or ensuring a safe financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Belleville, IL, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Belleville, IL fiduciary financial advisors won't ever recommend a solution, investment, or strategy that we do not sincerely believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or entity that occupies a role of trust and duty when overseeing assets, monetary matters, or legal concerns on behalf of another. Fiduciaries are legally and ethically committed to act in the best interests of the person or entity 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 — People or entities charged with managing 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 according to their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation 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 — People designated by the court to make decisions on behalf of people under 18 or individuals who are incapable 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 managing their cases.
- Real estate agents — Specialists 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 deal with their clients or beneficiaries honestly, with genuine intention, and without any aim to deceive or infringe upon 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 beneficiary, which means they must prioritize the beneficiary's interests over their own. They must eschew any conflicts of interest that could impair their ability to act only in the beneficiary's best interests. All conflicts of interest must be revealed to the client or beneficiary 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 apply the level of care, skill, and diligence that a prudent person would apply in the same or similar situations. They must make well-informed and careful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to shield and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Belleville, IL?
Financial advisors help Belleville, IL individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and others.
Anyone in Belleville, IL can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require ongoing education and a strict moral standard.
As an example, 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 Belleville, IL Fiduciaries?
Not all financial advisor in Belleville, IL is fiduciaries. The primary reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which requires advice to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with 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 can't predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you own
- Your needs for liquidity, income, and preservation of capital
- An asset's distinctive 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
Benefits of Working with a Fiduciary Financial Advisor in Belleville, IL
Opting to collaborate with a fiduciary financial advisor in Belleville, IL provides an array of benefits that can deeply affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Total disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Belleville, IL family
- Make investments on your behalf by employing their expertise to craft and manage a diversified portfolio that resonates with your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a custom approach
- Ongoing monitoring and advice to ensure your financial tactics and investments remain on track and that you can modify to any surprises the market or life gives your way
- Minimized risk with sensible and judicious investment choices made by carefully assessing the risk tied to each investment and tailoring your portfolio to match your risk tolerance
- Assurance that your best interests are being watched over by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios change
Choose Correct Capital as Your Belleville, IL Fiduciary Financial Advisor
Choosing a financial advisor in Belleville, IL with a fiduciary duty is essential 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 place at the forefront the financial success and peace of mind of Belleville, IL 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 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.
Contact us today at 877-930-4015 or contact us through our website to set up an appointment and discover how we can help you attain your financial goals in Belleville, IL.
