Fiduciary Financial Advisor in Cary, NC

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Fiduciary financial advisor in Cary, NC. For those in Cary, NC who don't have the free time, skill, or interest to oversee their assets and retirement accounts themselves, partnering 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 increase 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 Cary, NC, you'll have a confidante who has a legal and ethical responsibility to put your own best interests first.

At Correct Capital Wealth Management, our Cary, NC fiduciary financial advisors won't ever recommend a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest at heart, 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.



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Understanding Fiduciaries

A fiduciary is a person or organization that holds a role of confidence and responsibility when managing assets, monetary matters, or legal affairs on behalf of another. Fiduciaries are legally and ethically obliged to work in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.

Typical examples of fiduciaries are:

  • Trustees — People or entities tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
  • Executors — People appointed to handle the estate and assets of a decedent based on their will or the law.
  • Financial advisors — Professionals who provide financial advice and manage investments for clients, with an responsibility 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 chosen by the court to make decisions on behalf of underage individuals or persons who are unable to make decisions for themselves.
  • Attorneys — Legal professionals who are committed by a fiduciary duty to act in the best interests of their clients when dealing with their cases.
  • 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 important aspects to understanding fiduciary duty:

1. Good Faith

Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any design to deceive or damage the interests of their beneficiaries. They must consistently 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, which means they must prioritize the beneficiary's interests over their own. They ought to avoid any conflicts of interest that might jeopardize their capability to act solely in the client's best interests. Every conflicts of interest must be revealed to the client or beneficiary and the advisor must still act with the beneficiary's interest over their own.

3. Duty of Care

Fiduciaries have a "duty of care" to apply the degree of care, skill, and diligence that a prudent person would use in comparable circumstances. They must make informed and careful decisions when handling assets or deciding on behalf of their client or beneficiary. This duty ensures that they do their best to safeguard and increase the assets under their care while reducing risks.

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What Is a Fiduciary Financial Advisor in Cary, NC?

Financial advisors help Cary, NC individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.

Anyone in Cary, NC 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 have to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications necessitate continuous education and a rigorous moral standard.

As an example, 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 Cary, NC Fiduciaries?

Not all financial advisor in Cary, NC is fiduciaries. The main reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:

  • Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires strategies to be appropriate for clients but does not mandate the same duties of loyalty and care.
  • Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation open and limiting conflicts of interest. Other advisors typically 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, 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 select investments that a reasonable person would purchase based on an acceptable risk considering the client's goals and investment objective.

The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:

  • General economic conditions
  • Potential inflation or deflation
  • Expected tax implications of investments
  • The role that each investment or strategy plays within your portfolio
  • Expected profit and appreciation of capital
  • Other assets and resources you have
  • 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 operate under the “suitability rule” are merely required to recommend investments or financial products that align with your goals, while advisors with a fiduciary duty must operate in your best interest. Here are some important differences:

Fiduciary Duty

  • Legal and Ethical Obligation: Fiduciary financial advisors are lawfully and ethically obligated to act in their clients' best interests at all times.
  • Best Interest: Financial advisors must focus on the client's financial well-being over their own profit.
  • Comprehensive Care: They must disclose all conflicts of interest, guarantee 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 suggestions 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 recommendations are suitable.
  • Potential Conflicts: Advisors may receive commissions from the sale of investment 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 appropriate for the client.
  • Examples: Some broker-dealers and insurance agents.

Best Interest vs. Reasonable Basis

The Investment Advisers Act of 1940 requires that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 stipulates that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their recommendations. Here's a summary of what those terms mean in relation to handling a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Demands advisors to act in the client's most favorable financial interest. Demands advisors to recommend appropriate investment products or strategies based on provided information.
Standard of Care Elevated level of care making sure every action conforms with the client's most favorable outcome. Ensures recommendations are appropriate and make sense for the client's circumstances.
Client-Centric Approach Financial advisors focus on client's goals, needs, and preferences above their own. Financial advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Total disclosure of potential conflicts of interest is required. Looser disclosure requirements, so long as the recommendation is suitable.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Suggestions 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 less focus on ongoing oversight.
Conflict of Interest Must reveal and handle conflicts openly, ensuring clients are aware of potential biases. Conflicts are more loosely governed, as long as the recommendation remains appropriate.
Long-Term Commitment Financial advisors have a ongoing obligation to oversee and update the client's financial plan. Regular reviews are suggested, but the focus is on the suitability of initial recommendations.

Benefits of Working with a Fiduciary Financial Advisor in Cary, NC

Opting to collaborate with a fiduciary financial advisor in Cary, NC provides an array of advantages that can profoundly impact your fiscal health:

  • Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
  • Full disclosure of essential materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Cary, NC family
  • Handle investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that matches your goals and strategies
  • Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to devise a personalized approach
  • Ongoing monitoring and guidance to guarantee your financial tactics and investments continue to be in line and that you can adapt to any curveballs the market or life throws your way
  • Diminished risk with prudent and judicious investment choices done by thoroughly assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
  • Assurance that your best interests are being watched over by skilled financial professionals
  • A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals shift 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 designed 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 match your life aspirations.


Customized Financial Roadmap

We begin by conducting a thorough analysis of your current 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 balance your portfolio, balancing your risk tolerance with your time horizon. Our team regularly monitors and adjusts your investments to meet your financial goals, making sure that your portfolio remains robust and adaptable to changing market conditions.


Retirement Strategy

Planning for retirement is a foundation of our comprehensive financial planning. We guide you through the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire with ease and securely.


Tax Planning

Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are well-versed in tax laws and strategies that can reduce your tax liability and boost your overall financial health.


Legacy Planning

We also provide expert guidance on estate planning to assist you in preserving your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are distributed according to your wishes while reducing tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a once-off event but a ongoing process. We provide ongoing monitoring and routine 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 profoundly 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 devoted to helping you attain your financial goals with integrity and excellence.

Other services we offer in Cary, NC include:


Choose Correct Capital as Your Cary, NC Fiduciary Financial Advisor

Choosing a financial advisor in Cary, NC with a fiduciary standard 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 prioritize the financial success and peace of mind of Cary, NC residents and business owners alike. 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 offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.

Reach out to us today at 314-930-401(k) or contact us online to schedule an appointment and discover how we can help you reach your financial goals in Cary, NC.

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