Fiduciary financial advisor in Cincinnati, OH. For those in Cincinnati, OH who lack the time, skill, or inclination to oversee their investments 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 preparing for retirement, looking 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 working with a fiduciary financial advisor in Cincinnati, OH, you'll have a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Cincinnati, OH fiduciary financial advisors won't ever propose a solution, investment, or strategy that we don't sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, get in touch with Correct Capital now at 314-930-401(k), contact us through our wesbite, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a person or organization that occupies a position of trust and duty when overseeing assets, monetary matters, or legal affairs for another person. Fiduciaries are legally and ethically bound to operate in the best interests of the individual or organization they are representing, often referred to 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 responsible for handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to oversee 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 obligation to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or individuals who are incapable 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 managing their legal affairs.
- Real estate agents — Specialists 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 vital aspects 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 design to deceive or damage the interests of their beneficiaries. They must always act honestly 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 ahead of their own. They should avoid any conflicts of interest that might compromise their ability to act exclusively in the beneficiary's best interests. All conflicts of interest need to be made known to the client and the advisor has to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a prudent person would employ in comparable circumstances. They must make well-informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they work diligently to safeguard and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Cincinnati, OH?
Financial advisors help Cincinnati, OH individuals, families, and business owners achieve their life goals by means of a range of financial services and recommendations. These services comprise investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Any person in Cincinnati, OH 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. Securing and retaining these certifications require ongoing education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Cincinnati, OH Fiduciaries?
Not all financial advisor in Cincinnati, OH are fiduciaries. The main reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which mandates strategies to be appropriate 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 usually charge a proportional charge for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors usually 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 must abide by the Prudent-Person Rule, often 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 mandates that a fiduciary financial advisor go for investments that a sensible person would purchase considering an acceptable risk based on 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 may 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 course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- Your needs for liquidity, 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 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 obligated to suggest investment products or products that match your objectives, while financial advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Ethical Responsibility: Fiduciary financial advisors are lawfully and morally bound 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 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 merely need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Financial 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.
- Regulation: Regulated by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is suitable for the client.
- Examples: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 stipulates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 stipulates that dealer-brokers and other non-fiduciaries only 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 financial advisors to act in the client's most favorable financial interest. | Requires advisors to recommend appropriate investment products or plans based on provided information. |
| Standard of Care | Superior level of care making sure every action aligns with the client's best outcome. | Guarantees recommendations are appropriate and make sense for the client's circumstances. |
| Client-Centric Approach | Advisors focus on client's goals, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is required. | Less stringent disclosure requirements, so long as the suggestion is appropriate. |
| 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, requiring regular reviews and updates. | Focuses on the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
| Conflict of Interest | Must reveal and handle conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the recommendation remains suitable. |
| Long-Term Commitment | Financial advisors have a continuous obligation to oversee and update the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Cincinnati, OH
Deciding to work with a fiduciary financial advisor in Cincinnati, OH provides an array of advantages that can profoundly impact your financial health:
- Fiduciary financial advisers are required to act in your best interest and uphold professional standards
- Total disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Cincinnati, OH family
- Make investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a custom approach
- Consistent 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
- Diminished risk with wise and judicious investment choices taken by thoroughly assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being watched over by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic 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 works diligently to grasp your unique financial situation and adapt strategies that suit your life aspirations.
Customized Financial Roadmap
We begin by undertaking a comprehensive analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us create a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Investment Portfolio Management
We craft personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team regularly monitors and adjusts your investments to match your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
Planning for retirement is a cornerstone of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire with ease and with confidence.
Tax Planning
Effective tax planning ensures more of your hard-earned money with yourself and your family. Our advisors are expert in tax laws and strategies that can decrease your tax liability and boost your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to assist you in protecting 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 one-time event but a constant process. We provide ongoing monitoring and routine reviews to modify your financial plan to any alterations in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is highly client-centric. We take pride in building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are dedicated to helping you reach your financial goals with integrity and excellence.
Other services we offer in Cincinnati, OH include:
Choose Correct Capital as Your Cincinnati, OH Fiduciary Financial Advisor
Selecting a financial advisor in Cincinnati, OH with a fiduciary standard is vital to ensure 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 prioritize the financial success and peace of mind of Cincinnati, OH 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 guide you on your financial journey. We provide 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 through our website to arrange an appointment and find out more about how we can aid you achieve your financial goals in Cincinnati, OH.
