Fiduciary Financial Advisor in Chesapeake, VA

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Fiduciary financial advisor in Chesapeake, VA. For those in Chesapeake, VA who lack the free time, knowledge, or inclination to oversee their investments and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Chesapeake, VA, you'll have a ally who has a legal and ethical responsibility to put your own best interests first.

At Correct Capital Wealth Management, our Chesapeake, VA fiduciary financial advisors won't ever propose a solution, investment, or approach that we don't truly believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.



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What Is a Fiduciary?

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

Frequent examples of fiduciaries include:

  • Trustees — People or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
  • Executors — People chosen to handle the estate and assets of a deceased person based on their will or the law.
  • Financial advisors — Professionals who give financial advice and manage investments for clients, with an duty to put first the client's financial goals.
  • Corporate directors — Representatives of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
  • Guardians — Individuals appointed 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 bound by a fiduciary duty to work in the best interests of their clients when handling legal matters.
  • Real estate agents — Professionals who assist 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 crucial facets to understanding fiduciary duty:

1. Good Faith

Fiduciaries are obligated to act in "good faith," which means they interact with their clients or beneficiaries honestly, with sincerity, and without any design to mislead or damage 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 client, which means they must put first the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that might impair their capability to act solely in the client's best interests. All conflicts of interest must 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 prudent person would employ in comparable circumstances. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client. This duty ensures that they strive to shield and increase the assets within their care while minimizing risks.

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What Is a Fiduciary Financial Advisor in Chesapeake, VA?

Financial advisors help Chesapeake, VA individuals, families, and business owners attain their life goals via a range of financial services and recommendations. These services comprise investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.

Any person in Chesapeake, VA 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 must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications demand ongoing education and a stringent moral standard.

To illustrate, 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 Chesapeake, VA Fiduciaries?

Not all financial advisor in Chesapeake, VA is fiduciaries. The main reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, leading to varying standards of care:

  • Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands investments to be fitting for clients but doesn't require the same level of fiduciary duty.
  • Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Other advisors generally receive commissions or different kinds of compensation associated with product sales, which means you can't be sure that their recommendations are 100% for your benefit.

The Prudent-Person Rule

Fiduciary financial advisors are required to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a sensible person would purchase considering an acceptable risk considering 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 can apply their own specific 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
  • 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 work under the “suitability standard” are merely required to suggest investments or financial products that align with your objectives, while financial advisors with a fiduciary duty must operate in your best interest. Here are some important differences:

Fiduciary Duty

  • Legal Obligation: 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 focus on the client's financial health over their own profit.
  • Full Disclosure: They must reveal all conflicts of interest, ensure transparency, and provide the highest level of care in their recommendations and actions.
  • Regulation: 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

  • Suitability: Advisors only 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 take into account 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.
  • Regulation: Regulated by the Financial Industry Regulatory Authority (FINRA), which requires 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 mandates 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 handling a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Mandates financial advisors to act in the client's best financial interest. Demands advisors to suggest appropriate products or plans based on provided information.
Standard of Care Superior level of care making sure every action aligns with the client's most favorable outcome. Ensures suggestions are appropriate and make sense for the client's situation.
Client-Centric Approach Financial advisors focus on client's objectives, needs, and preferences above their own. Financial advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Full disclosure of potential conflicts of interest is mandated. Looser disclosure requirements, as long as the suggestion is appropriate.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Suggestions based on reasonable research and analysis.
Ongoing Duty Continuous duty to act in the client's best interest, demanding regular reviews and updates. Focuses on the appropriateness of advice at the time of the recommendation, with minimal focus on ongoing oversight.
Conflict of Interest Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. Conflicts are less tightly controlled, as long as the recommendation remains suitable.
Long-Term Commitment Financial advisors have a ongoing obligation to monitor and update the client's financial plan. Periodic reviews are advised, but the focus is on the suitability of initial recommendations.

Benefits of Working with a Fiduciary Financial Advisor in Chesapeake, VA

Opting to collaborate with a fiduciary financial advisor in Chesapeake, VA provides an array of advantages that can deeply impact your financial health:

  • Fiduciary financial advisers must act in your best interest and maintain high standards
  • Full disclosure of essential materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Chesapeake, VA family
  • Manage investments on your behalf by employing their expertise to develop and oversee a diversified portfolio that matches your goals and strategies
  • Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a personalized approach
  • Ongoing monitoring and guidance to guarantee your financial strategies and investments stay aligned and that you can modify to any surprises the market or life gives your way
  • Diminished risk with prudent and judicious investment choices done by thoroughly assessing the risk linked with each investment and tailoring your portfolio to match your risk tolerance
  • Relief that your best interests are being looked after by skilled financial advisors
  • A long-term relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life situations modify

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our comprehensive financial planning services are designed to offer you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to grasp your unique financial situation and adapt strategies that align with your life aspirations.


Personalized Financial Roadmap

We begin by performing a comprehensive analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that meets your short-term needs and long-term objectives.


Financial Portfolio Management

We craft personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team continuously monitors and adjusts your investments to match your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.


Retirement Strategy

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


Tax Planning

Effective tax planning helps keep your hard-earned money in your pocket and your loved ones. Our advisors are well-versed in tax laws and strategies that can decrease your tax liability and improve your overall financial health.


Legacy Planning

We also offer educated guidance on estate planning to assist you in preserving your legacy. From wills and trusts to estate tax strategies, we make certain your assets are distributed according to your wishes while lowering tax burdens.


Continuous Oversight

Financial planning is not a once-off event but a ongoing process. We offer ongoing monitoring and routine reviews to adjust 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 take pride in building long-lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are devoted to helping you attain your financial goals with integrity and excellence.

Other services we offer in Chesapeake, VA include:


Choose Correct Capital as Your Chesapeake, VA Fiduciary Financial Advisor

Choosing a financial advisor in Chesapeake, VA with a fiduciary duty is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Chesapeake, VA 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 skills and qualifications essential 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.

Contact us now at 314-930-401(k) or contact us online to set up an appointment and find out more about how we can help you reach your financial goals in Chesapeake, VA.

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