Fiduciary Financial Advisor in Chicago, IL

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Fiduciary financial advisor in Chicago, IL. For those in Chicago, IL who lack the free time, knowledge, or interest to handle their assets and retirement accounts on their own, 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, looking to manage your wealth, or ensuring a stable financial future for your family, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Chicago, IL, you'll have a ally who has a legal and ethical obligation to put your own best interests first.

At Correct Capital Wealth Management, our Chicago, IL fiduciary financial advisors will never suggest a product, investment, or approach that we do not truly believe in ourselves. For financial advisors that adhere to the fiduciary standard and work with your best interest as their top priority, reach out to Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule a meeting with on of our advisors.



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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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What Is a Fiduciary?

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

Typical examples of fiduciaries are:

  • Trustees — People or organizations charged with handling and monitoring assets held in a trust for the benefit 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 duty to emphasize the client's financial well-being.
  • Corporate directors — Members of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
  • Guardians — Individuals chosen by the court to make decisions on behalf of people under 18 or persons who are not able to make decisions for themselves.
  • Attorneys — Legal professionals who are obligated by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
  • Real estate agents — Professionals who help 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 elements to understanding fiduciary duty:

1. Good Faith

Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any intention to deceive or damage the interests of their beneficiaries. They must always act with integrity 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 should steer clear of any conflicts of interest that could compromise their ability to act only in the client's best interests. Every conflicts of interest must be made known to the client or beneficiary and the advisor must still act with the beneficiary's interest above their own.

3. Duty of Care

Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a wise person would use in the same or similar situations. They must make well-informed and considered decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they work diligently to protect and increase the assets under their care while reducing risks.

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What Is a Fiduciary Financial Advisor in Chicago, IL?

Financial advisors help Chicago, IL individuals, families, and business owners achieve their life goals via a variety of financial services and proposals. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and others.

Any individual in Chicago, IL can call themselves a "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 must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications demand ongoing education and a stringent moral standard.

To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must follow 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 Chicago, IL Fiduciaries?

Not all financial advisor in Chicago, IL is fiduciaries. The primary reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, leading to differentiated standards of care:

  • Regulatory framework — Financial advisors can be subject to different regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands investments to be suitable for clients but does not mandate the same level of fiduciary duty.
  • Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors generally 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 are required to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor purchase investments that a prudent person would purchase based on 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 eventually 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 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 readily available funds, 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 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 standard” are merely obligated to suggest investment products or products that align with your goals, while advisors with a fiduciary duty must operate in your best interest. Here are some key differences:

Fiduciary Duty

  • Legal Responsibility: Fiduciary financial advisors are legally and ethically obligated to act in their clients' best interests at all times.
  • Best Interest: Advisors must prioritize the client's financial health over their own profit.
  • Comprehensive Care: They must disclose all conflicts of interest, ensure transparency, and provide the highest standard of care in their recommendations and actions.
  • Governance: 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

  • Appropriateness: Advisors only need to ensure that their suggestions are appropriate 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 appropriate.
  • Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
  • Governance: 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 mandates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 requires 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 dealing with a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Demands advisors to act in the client's most favorable financial interest. Requires financial advisors to recommend suitable investment products or strategies based on provided information.
Standard of Care Superior level of care ensuring every action conforms with the client's best outcome. Ensures suggestions are suitable and make sense for the client's situation.
Client-Centric Approach Advisors prioritize client's objectives, needs, and preferences above their own. Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Complete disclosure of potential conflicts of interest is required. More relaxed disclosure requirements, provided the suggestion is proper.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Recommendations based on reasonable research and analysis.
Ongoing Duty Unceasing duty to act in the client's best interest, necessitating regular reviews and updates. Stresses the suitability 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 strictly regulated, as long as the suggestion remains suitable.
Long-Term Commitment Advisors have a ongoing obligation to monitor and adjust the client's financial plan. Regular reviews are suggested, but the focus is on the suitability of initial suggestions.

Benefits of Working with a Fiduciary Financial Advisor in Chicago, IL

Deciding to work with a fiduciary financial advisor in Chicago, IL offers an array of benefits that can significantly impact your financial health:

  • Fiduciary financial advisers are required to act in your best interest and maintain professional standards
  • Total disclosure of relevant materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Chicago, IL family
  • Handle investments on your behalf by leveraging their expertise to craft and manage a diversified portfolio that aligns with your financial goals and risk tolerance
  • Thorough financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
  • Continuous monitoring and advice to guarantee your financial plans and investments remain on track and that you can adjust to any surprises the market or life presents your way
  • Diminished risk with wise and accountable investment choices taken by meticulously assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
  • Peace of mind that your best interests are being cared for by knowledgeable financial professionals
  • A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions alter

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our comprehensive 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 comprehend your unique financial situation and tailor strategies that align with your life aspirations.


Personalized Financial Roadmap

We begin by undertaking a thorough analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that addresses your short-term needs and long-term objectives.


Investment Portfolio Management

We create personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team consistently monitors and adjusts your investments to align with 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 guide you through the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire securely and with confidence.


Tax Planning

Effective tax planning helps keep your hard-earned money with yourself and your family. 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 deliver expert guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we make certain your assets are allocated according to your wishes while reducing tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a one-time event but a continuous process. We deliver ongoing monitoring and regular 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 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 reach your financial goals with integrity and excellence.

Other services we offer in Chicago, IL include:


Hire Correct Capital as Your Chicago, IL Fiduciary Financial Advisor

Choosing a financial advisor in Chicago, IL with a fiduciary duty is essential to ensure your long-term interests stay protected. 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 Chicago, IL individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary to assist 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 now at 314-930-401(k) or contact us online to arrange an appointment and find out more about how we can aid you achieve your financial goals in Chicago, IL.

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