Fiduciary financial advisor in Jacksonville, FL. For those in Jacksonville, FL who don't have the time, skill, or interest to manage their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Jacksonville, FL, 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 Jacksonville, FL fiduciary financial advisors will never suggest a solution, investment, or strategy that we do not genuinely trust in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, 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.
What Is a Fiduciary?
A fiduciary is a person or organization that occupies a position of confidence and responsibility when managing assets, monetary matters, or legal affairs on behalf of another person. Fiduciaries are legally and ethically committed to operate 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 called the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — People or institutions responsible for managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed 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 prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of underage individuals or persons who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to work in the best interests of their clients when managing their legal affairs.
- Real estate agents — Specialists 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with sincerity, and without any design to deceive or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests over their own. They should avoid any conflicts of interest that might compromise their capability to act only in the beneficiary's best interests. All conflicts of interest must be disclosed to the client and the advisor needs to still act with the client/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 wise person would use in the same or similar situations. They must make well-informed and careful decisions when handling assets or deciding on behalf of their client. This duty guarantees that they do their best to protect and grow the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Jacksonville, FL?
Financial advisors help Jacksonville, FL individuals, families, and business owners achieve their life goals through a array of financial services and proposals. These services include investment recommendations, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Jacksonville, 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. Achieving and keeping these certifications demand persistent education and a strict moral standard.
As an example, 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 Jacksonville, FL Fiduciaries?
Not all financial advisor in Jacksonville, FL are fiduciaries. The main reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight relying on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work 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 way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically 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 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a reasonable person would purchase considering an acceptable risk based on 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 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 own
- 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 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 only obligated to recommend investment products or products that align with your objectives, while financial advisors with a fiduciary duty must operate in your best interest. Here are some important differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are lawfully and morally bound to act in their clients' best interests at all times.
- Best Interest: Advisors must focus on the client's financial health over their own profit.
- Full Disclosure: They must disclose all conflicts of interest, guarantee transparency, and deliver the highest level of care in their recommendations and actions.
- Oversight: Governed 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
- Suitability: Advisors merely 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 take into account their own interests as long as the recommendations are appropriate.
- Possible Conflicts: Financial advisors may earn commissions from the sale of financial 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 appropriate for the client.
- Examples: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 stipulates 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 dealing with a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires advisors to act in the client's best financial interest. | Mandates financial advisors to suggest appropriate investment products or plans based on provided information. |
| Standard of Care | Elevated 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 objectives, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, so long as the suggestion is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on reasonable research and analysis. |
| Ongoing Duty | Continuous duty to act in the client's best interest, demanding 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 openly, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains appropriate. |
| Long-Term Commitment | Advisors have a continuous obligation to monitor 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 Jacksonville, FL
Opting to collaborate with a fiduciary financial advisor in Jacksonville, FL offers an array of advantages that can profoundly influence your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Complete disclosure of relevant materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Jacksonville, FL family
- Manage investments on your behalf by employing their expertise to develop and handle a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to devise a personalized approach
- Consistent monitoring and advice to ensure your financial plans and investments remain on track and that you can adjust to any curveballs the market or life presents your way
- Reduced risk with prudent and responsible investment choices done by meticulously assessing the risk associated with each investment and modifying your portfolio to align with your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life scenarios change
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic financial planning services are designed to offer you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to comprehend your unique financial situation and adapt strategies that align with your life aspirations.
Customized Financial Roadmap
We begin by conducting a comprehensive analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us create 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 match your financial goals, making sure that your portfolio remains robust and adaptable to changing market conditions.
Retirement Planning
Planning for retirement is a cornerstone of our comprehensive financial planning. We guide you through the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire securely and safely.
Tax Planning
Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are well-versed in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Legacy Planning
We also offer 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 passed on according to your wishes while reducing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a once-off event but a continuous process. We offer 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 profoundly client-centric. We take pride in building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are dedicated to helping you attain your financial goals with integrity and excellence.
Other services we offer in Jacksonville, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Jacksonville, FL Fiduciary Financial Advisor
Selecting a financial advisor in Jacksonville, FL with a fiduciary duty is crucial 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 place at the forefront the financial success and peace of mind of Jacksonville, FL individuals 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 needed to lead 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 now at 314-930-401(k) or contact us online to schedule an appointment and find out more about how we can aid you reach your financial goals in Jacksonville, FL.
