Fiduciary financial advisor in Greensboro, NC. For Greensboro, NC residents who don't have the free time, knowledge, or interest to manage their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, seeking 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 working with a fiduciary financial advisor in Greensboro, NC, you'll have a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Greensboro, NC fiduciary financial advisors will never suggest a product, investment, or plan that we do not sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment 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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Understanding Fiduciaries
A fiduciary is a individual or entity that occupies a position of trust and duty when overseeing assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically obliged to work in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or entities responsible for managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed to handle the estate and assets of a deceased person as per 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 well-being.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or people who are unable 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 their legal affairs.
- Real estate agents — Specialists who help 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any design to deceive or damage the interests of their beneficiaries. They must always act honestly 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 prioritize the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that could compromise their capacity to act exclusively in the client's best interests. All conflicts of interest need to be made known 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 employ in comparable circumstances. They must make well-informed and considered decisions when handling assets or making decisions on behalf of their client. This duty ensures that they work diligently to shield and increase the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Greensboro, NC?
Financial advisors help Greensboro, NC individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Greensboro, NC can label 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 need to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications necessitate continuous education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to adhere to 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 Greensboro, NC Fiduciaries?
Not all financial advisor in Greensboro, NC is fiduciaries. The key reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work 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 may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation open and limiting conflicts of interest. Other advisors generally receive commissions or different kinds of compensation linked 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 need to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase 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 eventually unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you have
- Your needs for readily available funds, 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 work under the “suitability standard” are merely required to recommend investment products or financial products that match your goals, while financial advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Legal and Ethical Obligation: Fiduciary financial advisors are lawfully and morally obligated to act 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 provide the highest standard 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: Financial advisors merely need to ensure that their recommendations are appropriate 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 suggestions are suitable.
- 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 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 mandates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 requires 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 managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Demands financial advisors to act in the client's optimal financial interest. | Mandates financial advisors to recommend appropriate products or strategies based on available information. |
| Standard of Care | Higher level of care ensuring every action aligns with the client's most favorable outcome. | Ensures suggestions are appropriate and make sense for the client's situation. |
| Client-Centric Approach | Financial advisors prioritize client's goals, needs, and preferences above their own. | Financial advisors base suggestions on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is mandated. | More relaxed disclosure requirements, provided the recommendation is appropriate. |
| Due Diligence | Suggestions based on a comprehensive evaluation of the client's financial situation. | Recommendations based on adequate research and analysis. |
| Ongoing Duty | Ongoing 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 minimal focus on ongoing oversight. |
| Conflict of Interest | Must reveal and handle conflicts openly, 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 monitor and update the client's financial plan. | Regular reviews are recommended, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Greensboro, NC
Choosing to partner with a fiduciary financial advisor in Greensboro, NC offers an array of benefits that can deeply influence your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Complete disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Greensboro, NC family
- Handle investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Ongoing monitoring and direction to ensure your financial plans and investments stay aligned and that you can modify to any surprises the market or life presents your way
- Reduced risk with prudent and judicious investment choices done by carefully assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being cared for by experienced financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life conditions modify
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive financial planning services are created to offer you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to comprehend your unique financial situation and adapt strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by conducting a comprehensive 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.
Financial Portfolio Management
We create personalized strategies to balance your portfolio, balancing your risk tolerance 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 key element of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire comfortably and securely.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your family. Our advisors are expert in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Legacy Planning
We also offer expert 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 lowering tax burdens.
Continuous Oversight
Financial planning is not a single event but a ongoing process. We deliver ongoing monitoring and regular reviews to adapt your financial plan to any alterations in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is deeply client-centric. We take pride in building long-lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are committed to helping you reach your financial goals with integrity and excellence.
Other services we offer in Greensboro, NC include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Greensboro, NC Fiduciary Financial Advisor
Choosing a financial advisor in Greensboro, NC with a fiduciary duty is essential to ensure 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 prioritize the financial success and peace of mind of Greensboro, NC residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential 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.
Get in touch with us today at 314-930-401(k) or contact us online to schedule an appointment and learn more about how we can help you attain your financial goals in Greensboro, NC.
