Fiduciary Financial Advisor in Honolulu, HI

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Fiduciary financial advisor in Honolulu, HI. For Honolulu, HI residents who don't have the time, knowledge, or inclination to oversee their investments and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're planning for retirement, looking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Honolulu, HI, you'll have a confidante who is legally and ethically obliged to put your own best interests first.

At Correct Capital Wealth Management, our Honolulu, HI fiduciary financial advisors will never propose a product, investment, or strategy that we don't genuinely believe in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital now at 314-930-401(k), fill out our online form, or schedule a meeting with on of our advisors.



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What Is a Fiduciary?

A fiduciary is a person or entity that maintains a role of trust and duty when handling assets, finances, or legal concerns on behalf of another. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or entity they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.

Common examples of fiduciaries are:

  • Trustees — People or entities charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
  • Executors — People designated to manage the estate and assets of a decedent 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 chosen by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
  • Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
  • 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 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 design to mislead 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 client/beneficiary, which means they must prioritize the beneficiary's interests above their own. They ought to steer clear of any conflicts of interest that might impair their capacity to act solely in the beneficiary's best interests. Every conflicts of interest need to be disclosed to the client or beneficiary 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 employ the standard of care, skill, and diligence that a prudent person would employ in the same or similar situations. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client. This duty guarantees that they strive to protect and grow the assets within their care while mitigating risks.

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What Is a Fiduciary Financial Advisor in Honolulu, HI?

Financial advisors help Honolulu, HI individuals, families, and business owners attain their life goals as they relate to their finances. These services include investment strategies, retirement consulting, tax planning, estate planning, portfolio management and more.

Anyone in Honolulu, HI 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 need to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications necessitate continuous education and a rigorous moral standard.

To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Honolulu, HI Fiduciaries?

Not all financial advisor in Honolulu, HI are fiduciaries. The key reason is that financial advisors can operate under various regulatory frameworks and compensation structures, leading to varying standards of care:

  • Regulatory framework — Financial advisors might be subject to different regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates investments to be fitting for clients but does not mandate the same level of fiduciary duty.
  • Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Other advisors generally 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 need to abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor select investments that a sensible 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 subsequently unified with the Uniform Prudent Investor Act. Each state may 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 implications of investments
  • The role that each investment or course of action plays within your portfolio
  • Expected profit and appreciation of capital
  • Additional assets and resources you own
  • 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 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 rule” are only required to suggest investment products or 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

  • Ethical Obligation: Fiduciary financial advisors are lawfully and ethically bound to act in their clients' best interests at all times.
  • Client's Best Interest: Advisors must focus on the client's financial well-being over their own profit.
  • Full Disclosure: They must reveal all conflicts of interest, guarantee transparency, and provide the highest level of care in their advice 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 merely need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
  • Reduced Care Standard: Advisors can take into account their own interests as long as the recommendations are appropriate.
  • Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
  • Regulation: Governed 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 mandates 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 recommendations. 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. Requires financial advisors to suggest appropriate products or strategies based on available information.
Standard of Care Superior level of care making sure every action conforms with the client's best outcome. Ensures recommendations are suitable and make sense for the client's circumstances.
Client-Centric Approach Advisors prioritize client's goals, needs, and preferences above their own. Financial advisors base recommendations on the client's stated financial situation, objectives, and risk tolerance.
Transparency Complete disclosure of potential conflicts of interest is mandated. Looser disclosure requirements, provided the recommendation is proper.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Recommendations based on reasonable research and analysis.
Ongoing Duty Ongoing duty to act in the client's best interest, requiring regular reviews and updates. Focuses on the appropriateness of advice at the time of the recommendation, with less 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 recommendation remains appropriate.
Long-Term Commitment Advisors have a ongoing obligation to oversee and adjust the client's financial plan. Regular reviews are suggested, but the focus is on the suitability of initial recommendations.

Benefits of Working with a Fiduciary Financial Advisor in Honolulu, HI

Deciding to work with a fiduciary financial advisor in Honolulu, HI provides an array of benefits that can deeply affect your monetary health:

  • Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
  • Full disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Honolulu, HI family
  • Handle investments on your behalf utilizing their expertise to craft and manage a diversified portfolio that matches your goals and strategies
  • Complete financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a personalized approach
  • Consistent monitoring and direction to guarantee your financial tactics and investments continue to be in line and that you can modify to any surprises the market or life gives your way
  • Reduced 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
  • Peace of mind that your best interests are being watched over by knowledgeable financial advisors
  • A lasting relationship with a fiduciary financial advisor that comprehends 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 crafted to offer you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to grasp your unique financial situation and tailor strategies that align with your life aspirations.


Tailored Financial Roadmap

We begin by undertaking a detailed analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that meets 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 regularly monitors and adjusts your investments to meet your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.


Retirement Planning

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 with ease and safely.


Tax Planning

Effective tax planning helps keep your hard-earned money in your pocket and your loved ones. Our advisors are well-versed in tax laws and strategies that can lower your tax liability and boost your overall financial health.


Estate Planning

We also deliver informed guidance on estate planning to assist you in protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are distributed according to your wishes while minimizing tax burdens.


Continuous Oversight

Financial planning is not a single event but a constant process. We provide ongoing monitoring and regular reviews to adapt your financial plan to any alterations in your life circumstances or economic environment.


Client-Focused Strategy

At Correct Capital, our approach is highly client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are dedicated to helping you reach your financial goals with integrity and excellence.

Other services we offer in Honolulu, HI include:


Hire Correct Capital as Your Honolulu, HI Fiduciary Financial Advisor

Choosing a financial advisor in Honolulu, HI with a fiduciary standard is essential to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Honolulu, HI 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 knowledge and qualifications necessary to lead 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 through our website to schedule an appointment and learn more about how we can help you reach your financial goals in Honolulu, HI.

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