Fiduciary financial advisor in Columbia, IL. For those in Columbia, IL who don't have the free time, skill, or inclination to oversee their assets and retirement accounts themselves, partnering with a financial advisor provides peace of mind. Trust is paramount in that relationship, and whether you're planning for retirement, seeking to increase your wealth, or ensuring a stable 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 Columbia, IL, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Columbia, IL fiduciary financial advisors won't ever suggest a solution, investment, or strategy that we don't truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest at heart, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that holds a role of confidence and responsibility when overseeing assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically bound to act in the best interests of the person or entity they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or institutions tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People designated to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an obligation to prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People 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 dealing with their legal affairs.
- Real estate agents — Experts who help clients in buying, selling, or renting properties and are expected 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 engage with their clients or beneficiaries with integrity, with sincerity, and without any intention to mislead or harm the interests of their beneficiaries. They must consistently 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/beneficiary, which means they must put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might impair their capacity to act exclusively in the client's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor needs to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a wise person would apply in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to protect and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Columbia, IL?
Financial advisors help Columbia, IL individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Columbia, IL can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate persistent education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Columbia, IL Fiduciaries?
Not all financial advisor in Columbia, IL are fiduciaries. The main reason is that financial advisors can work under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates advice to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation clear and minimizing conflicts of interest. Other advisors typically receive commissions or other forms 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 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 determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase from an acceptable risk in light of 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 might apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Columbia, IL
Choosing to partner with a fiduciary financial advisor in Columbia, IL offers an array of advantages that can profoundly influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain professional standards
- Complete disclosure of essential materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Columbia, IL family
- Handle investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Thorough financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a personalized approach
- Ongoing monitoring and advice to guarantee your financial plans and investments stay aligned and that you can modify to any unexpected situations the market or life throws your way
- Reduced risk with prudent and responsible investment choices taken by meticulously assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being cared for by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations alter
Hire Correct Capital as Your Columbia, IL Fiduciary Financial Advisor
Choosing a financial advisor in Columbia, IL with a fiduciary duty is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Columbia, 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 essential to guide 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 877-930-4015 or contact us online to schedule an appointment and discover how we can assist you attain your financial goals in Columbia, IL.
