Fiduciary financial advisor in Fort Collins, CO. For those in Fort Collins, CO who don't have the time, expertise, or interest to oversee their investments and retirement accounts themselves, working with a financial advisor provides peace of mind. Trust is paramount in that relationship, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Fort Collins, CO, you'll have a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Fort Collins, CO fiduciary financial advisors won't ever suggest a solution, investment, or approach that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, get in touch with Correct Capital now at 314-930-401(k), 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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What Is a Fiduciary?
A fiduciary is a person or organization that holds a role of trust and responsibility when managing assets, monetary matters, or legal affairs for another. Fiduciaries are legally and ethically committed to act in the best interests of the individual or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or institutions tasked with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an obligation to put first the client's financial well-being.
- Corporate directors — Representatives 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 minors or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers 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 assist 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with sincerity, and without any intention to mislead or infringe upon the interests of their beneficiaries. They must always act honestly 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 ought to eschew any conflicts of interest that could jeopardize their capability to act exclusively in the client's best interests. Any conflicts of interest need to be disclosed to the client and the advisor needs to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make informed and considered decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to safeguard and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Fort Collins, CO?
Financial advisors help Fort Collins, CO individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Fort Collins, CO can call themselves a "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 must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Fort Collins, CO Fiduciaries?
Not all financial advisor in Fort Collins, CO are fiduciaries. The primary reason is that financial advisors can work 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. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands investments to be fitting 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 open and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms 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 select investments that a prudent person would purchase considering an acceptable risk considering 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, mandates that fiduciary financial advisors must consider:
- Overall 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 special 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
Fiduciary Duty vs. Suitability Standard: What’s the Difference?
Advisors who operate under the “suitability standard” are merely required to suggest investments or financial products that align with your objectives, while advisors with a fiduciary duty must operate in your best interest. Here are some key differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are legally and morally obligated to operate in their clients' best interests at all times.
- Best Interest: Financial advisors must focus on the client's financial well-being over their own profit.
- Full Disclosure: They must disclose all conflicts of interest, ensure transparency, and provide the highest standard of care in their advice 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: Financial advisors merely need to ensure that their suggestions are suitable for the client’s financial requirements and objectives at the time of the transaction.
- Lower Standard of Care: Financial advisors can consider their own interests as long as the recommendations are suitable.
- Potential Conflicts: Financial advisors may earn 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.
- 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 simply have a "reasonable basis" for their suggestions. 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 | Requires financial advisors to act in the client's optimal financial interest. | Demands financial advisors to recommend suitable investment products or strategies based on provided information. |
| Standard of Care | Elevated level of care making sure every action conforms with the client's most favorable outcome. | Guarantees suggestions are proper and make sense for the client's situation. |
| Client-Centric Approach | Advisors focus on client's goals, needs, and preferences above their own. | Financial advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is required. | Looser disclosure requirements, as long as the recommendation is proper. |
| Due Diligence | Suggestions 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. | Stresses the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
| Conflict of Interest | Must reveal and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the suggestion remains suitable. |
| Long-Term Commitment | Financial advisors have a ongoing obligation to oversee and adjust the client's financial plan. | Regular reviews are advised, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Fort Collins, CO
Choosing to partner with a fiduciary financial advisor in Fort Collins, CO brings to the table an array of advantages that can significantly impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and adhere to professional standards
- Complete disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Fort Collins, CO family
- Make 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 holistic approach to your financial well-being, considering all facets of your financial life to devise a custom approach
- Continuous monitoring and direction to ensure your financial plans and investments remain on track and that you can modify to any surprises the market or life throws your way
- Reduced risk with sensible and responsible investment choices taken by carefully assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals change over time, and life situations alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive financial planning services are crafted to provide you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to comprehend your unique financial situation and tailor strategies that match your life aspirations.
Personalized Financial Roadmap
We begin by undertaking a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Financial Portfolio Management
We create personalized strategies to balance your portfolio, balancing your risk tolerance with your time horizon. Our team continuously 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 cornerstone of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire with ease and with confidence.
Tax Planning
Effective tax planning helps keep your hard-earned money in your pocket and your loved ones. Our advisors are highly knowledgeable in tax laws and strategies that can lower your tax liability and improve your overall financial health.
Legacy Planning
We also offer educated guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we make certain your assets are allocated according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a single event but a continuous process. We deliver ongoing monitoring and routine reviews to adapt your financial plan to any changes in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly client-centric. We pride ourselves on building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are dedicated to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Fort Collins, CO include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Fort Collins, CO Fiduciary Financial Advisor
Selecting a financial advisor in Fort Collins, CO with a fiduciary standard is vital to ensure 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 Fort Collins, CO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise 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 set up an appointment and find out more about how we can assist you reach your financial goals in Fort Collins, CO.
