Fiduciary financial advisor in Charlotte, NC. For those in Charlotte, NC who lack the time, skill, or interest to handle their investments and retirement accounts themselves, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to grow your wealth, or ensuring a stable financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Charlotte, NC, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Charlotte, NC fiduciary financial advisors won't ever propose a solution, investment, or approach that we don't sincerely believe 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 now at 314-930-401(k), contact us through our wesbite, 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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About Fiduciaries
A fiduciary is a person or organization that holds a role of trust and responsibility when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically committed 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 referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions tasked with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an duty 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 — People chosen by the court to make decisions on behalf of minors or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any intention to deceive or infringe upon the interests of their beneficiaries. They must continually 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 put first the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might compromise their capacity to act only in the beneficiary's best interests. All conflicts of interest must be disclosed to the client 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 apply in similar circumstances. They must make well-informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to safeguard and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Charlotte, NC?
Financial advisors help Charlotte, NC 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, asset management and others.
Anyone in Charlotte, NC 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 need to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications demand continuous education and a strict 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 Charlotte, NC Fiduciaries?
Not all financial advisor in Charlotte, NC are fiduciaries. The main reason is that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to varying 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 usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates investments to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds 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 need to 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 mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase considering an acceptable risk in light of 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 may apply their own unique 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 profit and appreciation of capital
- Additional 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 rule” are merely required to suggest investment products or products that align with your goals, while advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are lawfully and morally obligated to operate in their clients' best interests at all times.
- Client's Best Interest: Financial advisors must prioritize the client's financial health over their own profit.
- Full Disclosure: They must disclose all conflicts of interest, ensure transparency, and deliver the highest standard of care in their recommendations and actions.
- Regulation: Regulated 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 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.
- Possible Conflicts: Financial advisors may receive commissions from the sale of investment products, which can create conflicts of interest.
- Regulation: Governed 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 mandates that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 stipulates that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires advisors to act in the client's optimal financial interest. | Requires advisors to recommend suitable investment products or plans based on available information. |
| Standard of Care | Superior level of care making sure every action aligns with the client's optimal outcome. | Makes certain recommendations are suitable and make sense for the client's situation. |
| Client-Centric Approach | Financial advisors prioritize client's objectives, needs, and preferences above their own. | Financial advisors base suggestions on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is mandated. | Looser disclosure requirements, so long as the recommendation is proper. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on adequate research and analysis. |
| Ongoing Duty | Continuous duty to act in the client's best interest, necessitating regular reviews and updates. | Emphasizes the suitability of advice at the time of the recommendation, with less focus on ongoing oversight. |
| Conflict of Interest | Must reveal and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the recommendation remains appropriate. |
| Long-Term Commitment | Advisors have a continuous obligation to monitor and adjust the client's financial plan. | Regular reviews are recommended, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Charlotte, NC
Opting to collaborate with a fiduciary financial advisor in Charlotte, NC offers an array of benefits that can significantly affect your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Total disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Charlotte, NC family
- Make investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
- Consistent monitoring and direction to guarantee your financial strategies and investments continue to be in line and that you can adjust to any curveballs the market or life throws your way
- Minimized risk with sensible and accountable investment choices taken by meticulously assessing the risk linked with each investment and modifying your portfolio to match your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions 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 grasp your unique financial situation and tailor strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by conducting a comprehensive analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Financial Portfolio Management
We create 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 key element of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire comfortably and securely.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your loved ones. Our advisors are well-versed in tax laws and strategies that can lower your tax liability and enhance your overall financial health.
Legacy Planning
We also provide informed guidance on estate planning to assist you in protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are passed on 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 periodic reviews to modify your financial plan to any changes in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly client-centric. We pride ourselves on building long-lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are committed to helping you reach your financial goals with integrity and excellence.
Other services we offer in Charlotte, NC include:
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Charlotte, NC Fiduciary Financial Advisor
Selecting a financial advisor in Charlotte, NC with a fiduciary standard is vital to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Charlotte, NC 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 expertise and qualifications essential to lead you on your financial journey. We give 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 set up an appointment and discover how we can assist you reach your financial goals in Charlotte, NC.
