Fiduciary financial advisor in Edwardsville, IL. For those in Edwardsville, IL who lack the free time, skill, or inclination to manage their investments and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that relationship, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a safe financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Edwardsville, IL, 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 Edwardsville, IL fiduciary financial advisors won't ever recommend a product, investment, or strategy that we don't truly believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest at heart, reach out to Correct Capital now at 877-930-4015, contact us online, 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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About Fiduciaries
A fiduciary is a person or entity that maintains a position of trust and responsibility when handling assets, finances, or legal matters for another. Fiduciaries are legally and ethically committed to operate 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.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an duty to prioritize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of people under 18 or persons who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when handling their legal affairs.
- Real estate agents — Specialists who assist clients in purchasing, 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any intention to mislead or damage the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients as a priority.
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 must eschew any conflicts of interest that might compromise their capacity to act solely in the client's best interests. Any 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 employ the level of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make well-informed and careful decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they work diligently to protect and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Edwardsville, IL?
Financial advisors help Edwardsville, IL individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Edwardsville, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate ongoing education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Edwardsville, IL Fiduciaries?
Not all financial advisor in Edwardsville, IL are fiduciaries. The primary reason is that financial advisors can function under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands investments to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation transparent and reducing conflicts of interest. Other 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, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor purchase investments that a prudent person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was subsequently 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 possess
- Your needs for readily available funds, income, and preservation of capital
- An asset's special 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
Benefits of Working with a Fiduciary Financial Advisor in Edwardsville, IL
Choosing to partner with a fiduciary financial advisor in Edwardsville, IL offers an array of advantages that can deeply impact your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Full disclosure of essential materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Edwardsville, IL family
- Manage investments on your behalf by employing their expertise to craft and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Continuous monitoring and guidance to ensure your financial tactics and investments stay aligned and that you can modify to any unexpected situations the market or life presents your way
- Reduced risk with sensible and judicious investment choices done by meticulously assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions alter
Choose Correct Capital as Your Edwardsville, IL Fiduciary Financial Advisor
Selecting a financial advisor in Edwardsville, IL with a fiduciary duty is vital 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 hold in high regard the financial success and peace of mind of Edwardsville, IL 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 necessary 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.
Reach out to us today at 877-930-4015 or contact us through our website to schedule an appointment and discover how we can assist you reach your financial goals in Edwardsville, IL.
