Fiduciary financial advisor in Belleville, IL. For those in Belleville, IL who lack the free time, knowledge, 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 paramount in that relationship, and whether you're planning for retirement, seeking to increase your wealth, or ensuring a safe 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 Belleville, IL, you'll gain a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Belleville, IL fiduciary financial advisors will never suggest a product, investment, or approach that we don't truly trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest in mind, reach out to Correct Capital now at 314-930-401(k), contact us online, or schedule an appointment with a member of our advisor team.
A fiduciary is a person or organization that maintains a role of trust and responsibility when overseeing assets, finances, or legal concerns for another. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or entity they are serving, often known 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 — People or institutions tasked with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Individuals 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 minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when handling their cases.
- Real estate agents — Experts who aid 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 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 truthfully, with genuine intention, and without any aim to deceive or harm the interests of their beneficiaries. They must consistently act with integrity 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 put first the beneficiary's interests over their own. They should steer clear of any conflicts of interest that might compromise their capacity to act solely in the beneficiary's best interests. Any conflicts of interest need to be made known to the client or beneficiary and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a judicious person would apply in like circumstances. They must make well-informed and thoughtful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they work diligently to shield and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Belleville, IL?
Financial advisors help Belleville, IL individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment choices, retirement planning, tax planning, estate planning, portfolio management and others.
Any person in Belleville, IL can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications require ongoing education and a rigorous 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 Belleville, IL Fiduciaries?
Not all financial advisor in Belleville, IL is fiduciaries. The primary reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which mandates investments to be fitting for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation associated with product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, often 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 stipulates that a fiduciary financial advisor go for investments that a reasonable person would purchase from an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, 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:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you have
- Your needs for readily available funds, 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
Benefits of Working with a Fiduciary Financial Advisor in Belleville, IL
Opting to collaborate with a fiduciary financial advisor in Belleville, IL offers an array of advantages that can profoundly impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to ethical standards
- Total disclosure of essential materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Belleville, IL family
- Handle investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
- Ongoing monitoring and guidance to guarantee your financial plans and investments remain on track and that you can modify to any surprises the market or life presents your way
- Reduced risk with wise and responsible investment choices made by meticulously assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being looked after by skilled financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life situations change
Choose Correct Capital as Your Belleville, IL Fiduciary Financial Advisor
Choosing a financial advisor in Belleville, IL 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 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 alike. 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 offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.