Fiduciary financial advisor in Hialeah, FL. For Hialeah, FL residents who lack the time, expertise, or inclination to handle their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow 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 Hialeah, FL, you'll have a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Hialeah, FL fiduciary financial advisors will never suggest a solution, investment, or plan that we don't truly trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, call Correct Capital today at 314-930-401(k), fill out our online form, 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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What Is a Fiduciary?
A fiduciary is a person or organization that maintains a position of trust and duty when managing assets, monetary matters, or legal affairs on behalf of another. Fiduciaries are legally and ethically obliged to work 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 referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or entities tasked with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an duty to emphasize 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 — People appointed by the court to make decisions on behalf of people under 18 or people 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 handling legal matters.
- Real estate agents — Experts who help 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 elements 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 with integrity, with sincerity, and without any aim to mislead or harm the interests of their beneficiaries. They must consistently 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, which means they must put first the beneficiary's interests over their own. They should avoid any conflicts of interest that could jeopardize their capability to act only in the client's best interests. All conflicts of interest need to be revealed to the client and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a prudent person would apply in like circumstances. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty ensures that they work diligently to shield and grow the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Hialeah, FL?
Financial advisors help Hialeah, FL individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment choices, retirement consulting, tax planning, estate planning, portfolio management and others.
Anyone in Hialeah, FL 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 accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Hialeah, FL Fiduciaries?
Not all financial advisor in Hialeah, FL are fiduciaries. The main reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks relying 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 strategies to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually 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, often 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 prudent person would purchase based on an acceptable risk considering 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
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 work under the “suitability rule” are merely required to recommend investment products or financial products that match your objectives, while 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 morally obligated to act in their clients' best interests at all times.
- Client's Best Interest: Financial advisors must prioritize 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 requires that investment advisors have a fiduciary duty to their clients.
- ExamplesInstances: Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNER™ professionals.
Suitability Standard
- Suitability: 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: Advisors can consider their own interests as long as the suggestions are appropriate.
- Potential Conflicts: Financial advisors may receive 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 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 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 managing a client's investments and financial planning:
Best Interest | Reasonable Belief | |
---|---|---|
Definition | Demands advisors to act in the client's most favorable financial interest. | Requires advisors to recommend appropriate investment products or strategies based on available information. |
Standard of Care | Superior level of care ensuring every action matches with the client's best outcome. | Guarantees recommendations are proper and make sense for the client's circumstances. |
Client-Centric Approach | Advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
Transparency | Complete disclosure of potential conflicts of interest is mandated. | More relaxed disclosure requirements, as long as 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, requiring regular reviews and updates. | Stresses the suitability of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
Conflict of Interest | Must disclose and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
Long-Term Commitment | 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 suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Hialeah, FL
Choosing to partner with a fiduciary financial advisor in Hialeah, FL brings to the table an array of benefits that can profoundly impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold professional standards
- Full disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Hialeah, FL family
- Manage investments on your behalf utilizing their expertise to craft and oversee a diversified portfolio that resonates with 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 devise a custom approach
- Continuous monitoring and direction to guarantee your financial tactics and investments stay aligned and that you can adjust to any surprises the market or life presents your way
- Diminished risk with wise and judicious investment choices done by carefully assessing the risk associated with each investment and shaping your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios modify
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 meeting your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to comprehend your unique financial situation and tailor strategies that align with your life aspirations.
Customized Financial Roadmap
We begin by undertaking a detailed analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us create a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Financial Portfolio Management
We develop 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 guide you through 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 ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are highly knowledgeable in tax laws and strategies that can decrease your tax liability and improve your overall financial health.
Estate Planning
We also offer educated guidance on estate planning to help you preserving your legacy. From wills and trusts to estate tax strategies, we ensure your assets are allocated according to your wishes while minimizing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a once-off event but a continuous process. We provide ongoing monitoring and regular reviews to adjust your financial plan to any shifts in your life circumstances or economic environment.
Client-Focused Strategy
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 highest priority, and we are committed to helping you attain your financial goals with integrity and excellence.
Other services we offer in Hialeah, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Hialeah, FL Fiduciary Financial Advisor
Selecting a financial advisor in Hialeah, FL 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 pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Hialeah, 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 expertise and qualifications needed to guide 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.
Contact us today at 314-930-401(k) or contact us online to arrange an appointment and learn more about how we can aid you attain your financial goals in Hialeah, FL.