Fiduciary financial advisor in Fort Lauderdale, FL. For those in Fort Lauderdale, FL who lack the time, skill, or inclination to handle their investments and retirement accounts on their own, working with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Fort Lauderdale, FL, you'll gain a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Fort Lauderdale, FL fiduciary financial advisors won't ever recommend a solution, investment, or strategy that we don't sincerely believe in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, reach out to Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule a meeting with a member of our advisor team.
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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 individual or entity that holds a position of trust and responsibility when overseeing assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically committed to act in the best interests of the person or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or organizations charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an responsibility to prioritize the client's financial goals.
- Corporate directors — Representatives 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 designated by the court to make decisions on behalf of minors or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to act in the best interests of their clients when managing their cases.
- Real estate agents — Professionals who aid clients in purchasing, 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with sincerity, and without any aim to mislead or infringe upon 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 beneficiary, which means they must put first the beneficiary's interests above their own. They should avoid any conflicts of interest that might compromise their capability to act solely in the client's best interests. Any conflicts of interest must be disclosed 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 apply the level of care, skill, and diligence that a prudent person would apply in the same or similar situations. They must make well-informed and thoughtful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty ensures that they strive to protect and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Fort Lauderdale, FL?
Financial advisors help Fort Lauderdale, FL individuals, families, and business owners realize their life goals through a range of financial services and proposals. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Any person in Fort Lauderdale, FL 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 must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications demand continuous education and a rigorous moral standard.
To illustrate, 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 Fort Lauderdale, FL Fiduciaries?
Not all financial advisor in Fort Lauderdale, FL are fiduciaries. The main reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which demands strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation clear and minimizing conflicts of interest. Other advisors usually 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- 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 expected 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 only obligated to suggest investments or financial products that align with your objectives, while financial advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are lawfully and ethically obligated to operate in their clients' best interests at all times.
- Best Interest: Financial advisors must focus on the client's financial health over their own profit.
- Comprehensive Care: They must disclose all conflicts of interest, ensure transparency, and deliver the highest level of care in their advice and actions.
- Oversight: 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 suggestions are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Advisors can consider their own interests as long as the suggestions are appropriate.
- Potential Conflicts: Advisors may receive commissions from the sale of investment products, which can create conflicts of interest.
- Regulation: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is appropriate for the client.
- Instances: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 stipulates that fiduciary advisors must serve in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to managing a client's investments and financial planning:
Best Interest | Reasonable Belief | |
---|---|---|
Definition | Mandates advisors to act in the client's optimal financial interest. | Requires advisors to recommend appropriate investment products or plans based on available information. |
Standard of Care | Elevated level of care ensuring every action matches with the client's optimal outcome. | Ensures recommendations are suitable and make sense for the client's situation. |
Client-Centric Approach | Advisors focus on client's objectives, needs, and preferences above their own. | Financial advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
Transparency | Full disclosure of potential conflicts of interest is mandated. | Less stringent disclosure requirements, provided the recommendation is appropriate. |
Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Recommendations based on adequate research and analysis. |
Ongoing Duty | Continuous duty to act in the client's best interest, necessitating regular reviews and updates. | Emphasizes the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
Conflict of Interest | Must disclose and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the recommendation remains appropriate. |
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 recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Fort Lauderdale, FL
Choosing to partner with a fiduciary financial advisor in Fort Lauderdale, FL offers an array of advantages that can deeply affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Total disclosure of relevant materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Fort Lauderdale, FL family
- Handle investments on your behalf by employing their expertise to create and oversee a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to establish a custom approach
- Continuous monitoring and advice to ensure your financial plans and investments stay aligned and that you can modify to any unexpected situations the market or life gives your way
- Diminished risk with sensible and responsible investment choices done by meticulously assessing the risk linked with each investment and shaping your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions 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 achieving your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to grasp your unique financial situation and tailor strategies that match your life aspirations.
Tailored Financial Roadmap
We begin by performing a detailed analysis of your current 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.
Investment Portfolio Management
We craft personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team consistently monitors and adjusts your investments to align with your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.
Retirement Strategy
Planning for retirement is a foundation of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to ensure you can retire securely and securely.
Tax Planning
Effective tax planning ensures more of your hard-earned money with yourself and your family. Our advisors are highly knowledgeable in tax laws and strategies that can lower your tax liability and enhance your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are passed on according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a once-off event but a continuous process. We provide ongoing monitoring and routine reviews to modify your financial plan to any changes in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is deeply client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are devoted to helping you attain your financial goals with integrity and excellence.
Other services we offer in Fort Lauderdale, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Fort Lauderdale, FL Fiduciary Financial Advisor
Choosing a financial advisor in Fort Lauderdale, FL with a fiduciary duty is crucial to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Fort Lauderdale, FL residents and business owners equally. 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 provide 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 314-930-401(k) or contact us online to set up an appointment and discover how we can assist you achieve your financial goals in Fort Lauderdale, FL.