Fiduciary financial advisor in Fairview Heights, IL. For those in Fairview Heights, IL who lack the free time, skill, or interest to handle their investments and retirement accounts on their own, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a safe financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Fairview Heights, IL, you'll gain a ally who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Fairview Heights, IL fiduciary financial advisors will never recommend a product, investment, or plan that we do not genuinely trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest in mind, call Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.
A fiduciary is a person or organization that occupies a position of trust and duty when handling assets, finances, or legal affairs on behalf of another. Fiduciaries are legally and ethically committed to operate in the best interests of the individual 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 include:
- Trustees — People or institutions tasked with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People designated by the court to make decisions on behalf of people under 18 or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when dealing with legal matters.
- Real estate agents — Specialists who assist 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with sincerity, 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 at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They should avoid any conflicts of interest that might jeopardize their capacity to act solely in the beneficiary's best interests. Any conflicts of interest need to be revealed to the client or beneficiary and the advisor must still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise 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 thoughtful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they do their best to safeguard and increase the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Fairview Heights, IL?
Financial advisors help Fairview Heights, IL individuals, families, and business owners achieve their life goals as they relate to their finances. These services comprise investment choices, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Fairview Heights, IL can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications demand continuous education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Fairview Heights, IL Fiduciaries?
Not all financial advisor in Fairview Heights, IL are fiduciaries. The main reason is that financial advisors can function under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks depending on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which mandates advice to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation associated with product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors need to abide by the Prudent-Person Rule, commonly 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 mandates that a fiduciary financial advisor purchase investments that a prudent person would purchase based on an acceptable risk in light of 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 unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you own
- Your needs for readily available funds, 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Fairview Heights, IL
Choosing to partner with a fiduciary financial advisor in Fairview Heights, IL offers an array of advantages that can deeply affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Fairview Heights, IL family
- Handle investments on your behalf by employing their expertise to create and manage a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to create a personalized approach
- Continuous monitoring and advice to ensure your financial tactics and investments stay aligned and that you can modify to any curveballs the market or life presents your way
- Diminished risk with wise and responsible investment choices done by thoroughly assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being watched over by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions change
Hire Correct Capital as Your Fairview Heights, IL Fiduciary Financial Advisor
Choosing a financial advisor in Fairview Heights, IL 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 hold in high regard the financial success and peace of mind of Fairview Heights, IL individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed 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.