Fiduciary financial advisor in Glendale, AZ. For Glendale, AZ residents who don't have the free time, knowledge, or inclination to handle their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're planning for retirement, looking to increase your wealth, or ensuring a stable 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 Glendale, AZ, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Glendale, AZ fiduciary financial advisors will never suggest a product, investment, or plan that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, call Correct Capital today at 314-930-401(k), contact us online, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that occupies a position of trust and duty when managing assets, monetary matters, or legal affairs for someone else. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or entities charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals 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 handle investments for clients, with an obligation to emphasize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to work in the best interests of their clients when dealing with legal matters.
- Real estate agents — Experts 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 deceive or damage the interests of their beneficiaries. They must continually 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 prioritize the beneficiary's interests over their own. They should eschew any conflicts of interest that could jeopardize their capacity to act solely in the client's best interests. Every conflicts of interest must be disclosed to the client and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the degree of care, skill, and diligence that a wise person would apply in like circumstances. They must make well-informed and thoughtful decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to shield and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Glendale, AZ?
Financial advisors help Glendale, AZ 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 more.
Anyone in Glendale, AZ can call themselves a "financial advisor," but to be 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 have to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications necessitate ongoing education and a stringent 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 Glendale, AZ Fiduciaries?
Not all financial advisor in Glendale, AZ are fiduciaries. The primary reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands advice to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation associated with product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors are required 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 determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor select investments that a sensible 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 later unified with the Uniform Prudent Investor Act. Each state might apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach 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 special relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the estimated 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 obligated to suggest investments or financial products that align with your objectives, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are lawfully and morally bound to operate in their clients' best interests at all times.
- Best Interest: 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 deliver the highest level of care in their recommendations and actions.
- Governance: Governed by the Investment Advisers Act of 1940, which requires that investment advisors have a fiduciary duty to their clients.
- ExamplesInstances: Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNER™ professionals.
Suitability Standard
- Suitability: Financial advisors only need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Lower Standard of Care: Advisors can consider their own interests as long as the suggestions are appropriate.
- Possible Conflicts: Advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
- Governance: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is suitable for the client.
- Instances: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 mandates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their recommendations. Here's a breakdown of what those terms mean in relation to handling a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires advisors to act in the client's best financial interest. | Demands advisors to suggest suitable investment products or strategies based on available information. |
| Standard of Care | Elevated level of care making sure every action conforms with the client's optimal outcome. | Guarantees suggestions are appropriate and make sense for the client's situation. |
| Client-Centric Approach | Advisors focus on client's goals, needs, and preferences above their own. | Advisors base suggestions on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is mandated. | Less stringent disclosure requirements, as long as the recommendation is suitable. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on reasonable research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, necessitating regular reviews and updates. | Focuses on the suitability of advice at the time of the recommendation, with less focus on ongoing oversight. |
| Conflict of Interest | Must reveal and manage conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the recommendation remains suitable. |
| Long-Term Commitment | Financial advisors have a continuous obligation to oversee and adjust the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Glendale, AZ
Opting to collaborate with a fiduciary financial advisor in Glendale, AZ brings to the table an array of advantages that can profoundly impact your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain ethical standards
- Total disclosure of relevant materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Glendale, AZ family
- Make investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a custom approach
- Continuous monitoring and direction to ensure your financial strategies and investments stay aligned and that you can modify to any surprises the market or life throws your way
- Diminished risk with prudent and responsible investment choices made by carefully assessing the risk linked with each investment and shaping your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being cared for by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals change over time, and life scenarios 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 reaching 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.
Tailored Financial Roadmap
We begin by performing a thorough analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Financial Portfolio Management
We develop personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team continuously 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 cornerstone of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire with ease and safely.
Tax Planning
Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Estate Planning
We also provide educated guidance on estate planning to assist you in preserving your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while reducing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a one-time event but a ongoing process. We offer ongoing monitoring and regular reviews to adjust your financial plan to any alterations in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is highly 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 committed to helping you attain your financial goals with integrity and excellence.
Other services we offer in Glendale, AZ include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Glendale, AZ Fiduciary Financial Advisor
Choosing a financial advisor in Glendale, AZ with a fiduciary standard is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Glendale, AZ individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential 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 today at 314-930-401(k) or contact us through our website to set up an appointment and find out more about how we can help you attain your financial goals in Glendale, AZ.
