Fiduciary Financial Advisor in Lexington, KY

Complimentary financial planning By Savology

Fiduciary financial advisor in Lexington, KY. For Lexington, KY residents who lack the free time, expertise, or inclination to handle their investments 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 saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Lexington, KY, you'll gain a partner who is legally and ethically committed to put your own best interests first.

At Correct Capital Wealth Management, our Lexington, KY fiduciary financial advisors won't ever suggest a solution, investment, or strategy that we do not truly believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, 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.



Schedule a Meeting With an Advisor Today

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.

Schedule a 15-Minute Introductory Call


Understanding Fiduciaries

A fiduciary is a person or organization that occupies a role of trust and responsibility when overseeing assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically obliged to work in the best interests of the person or entity they are serving, 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 include:

  • Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
  • Executors — People designated to manage the estate and assets of a decedent according to their will or the law.
  • Financial advisors — Professionals who provide financial advice and handle investments for clients, with an responsibility to emphasize the client's financial goals.
  • 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 people under 18 or persons who are incapable to make decisions for themselves.
  • Attorneys — Lawyers who are obligated by a fiduciary duty to act 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 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 sincerity, and without any design to deceive or harm the interests of their beneficiaries. They must continually 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 beneficiary, which means they must put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that could jeopardize their ability to act exclusively in the client's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor has to still act with the beneficiary's interest over their own.

3. Duty of Care

Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to protect and grow the assets under their care while reducing risks.

Fiduciary Financial Advisor in Lexington, KY | Retirement Consultant | Small Business Financial Advisor | Wealth management near me

What Is a Fiduciary Financial Advisor in Lexington, KY?

Financial advisors help Lexington, KY individuals, families, and business owners realize their life goals by means of a range of financial services and suggestions. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and others.

Any person in Lexington, KY can give themselves the title of "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 must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand persistent education and a stringent moral standard.

As an example, 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 Lexington, KY Fiduciaries?

Not all financial advisor in Lexington, KY are fiduciaries. The key reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to divergent standards of care:

  • Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands investments to be suitable for clients but doesn't require the same duties of loyalty and care.
  • Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation transparent and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with product sales, which means they could make recommendations that are more in their interest than yours.

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 determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase investments that a prudent person would purchase considering 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 may 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 consequences of investments
  • The part that each investment or approach plays within your portfolio
  • Expected profit and appreciation of capital
  • Additional 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 expected 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 recommend investments or 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

  • Legal Responsibility: Fiduciary financial advisors are lawfully and morally obligated to operate in their clients' best interests at all times.
  • Client's Best Interest: Advisors must prioritize the client's financial health over their own profit.
  • Full Disclosure: They must reveal all conflicts of interest, ensure transparency, and deliver the highest level of care in their advice and actions.
  • Oversight: 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: Advisors merely need to ensure that their suggestions are suitable 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 suggestions are suitable.
  • Potential Conflicts: Financial advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
  • Regulation: Regulated by the Financial Industry Regulatory Authority (FINRA), which mandates 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 operate in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their suggestions. 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 Mandates advisors to act in the client's best financial interest. Demands advisors to recommend appropriate investment products or plans based on provided information.
Standard of Care Superior level of care making sure every action conforms with the client's optimal outcome. Ensures suggestions are appropriate 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 suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Full disclosure of potential conflicts of interest is required. Looser disclosure requirements, as long as the suggestion is proper.
Due Diligence Recommendations based on a comprehensive evaluation of the client's financial situation. Recommendations based on adequate research and analysis.
Ongoing Duty Unceasing 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 openly, ensuring clients are aware of potential biases. Conflicts are less tightly controlled, as long as the recommendation remains suitable.
Long-Term Commitment Advisors have a ongoing obligation to oversee and update the client's financial plan. Regular reviews are advised, but the focus is on the suitability of initial recommendations.

Benefits of Working with a Fiduciary Financial Advisor in Lexington, KY

Choosing to partner with a fiduciary financial advisor in Lexington, KY provides an array of benefits that can significantly affect your monetary health:

  • Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
  • Complete disclosure of essential materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Lexington, KY family
  • Make investments on your behalf utilizing their expertise to develop and manage a diversified portfolio that aligns with your financial goals and risk tolerance
  • Complete financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
  • Consistent monitoring and advice 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 wise and accountable investment choices taken by meticulously assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
  • Relief that your best interests are being cared for by skilled financial professionals
  • A prolonged relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life scenarios alter

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our holistic financial planning services are created to offer 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 align with your life aspirations.


Personalized Financial Roadmap

We begin by undertaking a detailed analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that addresses your short-term needs and long-term objectives.


Investment Portfolio Management

We create 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 match your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.


Retirement Strategy

Planning for retirement is a foundation of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to ensure you can retire comfortably 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 lower your tax liability and boost your overall financial health.


Legacy Planning

We also deliver educated guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we make certain 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 deliver ongoing monitoring and periodic reviews to adjust your financial plan to any alterations in your life circumstances or economic environment.


Client-Focused Strategy

At Correct Capital, our approach is deeply 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 committed to helping you attain your financial goals with integrity and excellence.

Other services we offer in Lexington, KY include:


Hire Correct Capital as Your Lexington, KY Fiduciary Financial Advisor

Selecting a financial advisor in Lexington, KY with a fiduciary duty is crucial to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Lexington, KY residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to lead 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.

Reach out to us today at 314-930-401(k) or contact us online to set up an appointment and discover how we can aid you attain your financial goals in Lexington, KY.

Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer