Fiduciary financial advisor in Lincoln, NE. For Lincoln, NE residents who don't have the free time, knowledge, or inclination to handle their investments and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow your wealth, or ensuring a safe financial future for your family, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Lincoln, NE, you'll gain a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Lincoln, NE fiduciary financial advisors will never propose a product, investment, or strategy that we do not sincerely trust in ourselves. For financial advisors that adhere to the fiduciary standard and work with your best interest in mind, reach out to Correct Capital now 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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About Fiduciaries
A fiduciary is a individual or entity that maintains a role of trust and responsibility when overseeing assets, monetary matters, or legal affairs for another. Fiduciaries are legally and ethically obliged to work in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or organizations charged with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People appointed by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Specialists who help clients in buying, 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with sincerity, and without any intention to mislead or harm the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must put first the beneficiary's interests above their own. They should eschew any conflicts of interest that could impair their capability to act solely in the client's best interests. Any conflicts of interest must be revealed to the client and the advisor needs to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a prudent person would employ in like circumstances. They must make informed and careful decisions when managing assets or deciding on behalf of their client. This duty guarantees that they strive to protect and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Lincoln, NE?
Financial advisors help Lincoln, NE individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment choices, retirement planning, tax planning, estate planning, asset management and others.
Any person in Lincoln, NE can call themselves a "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 have to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require continuous 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 Lincoln, NE Fiduciaries?
Not all financial advisor in Lincoln, NE are fiduciaries. The main reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires recommendations to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation open and minimizing conflicts of interest. Other advisors usually receive commissions or different kinds 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 are required 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 ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from 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 might apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other 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 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 rule” are only obligated to recommend investment products or financial products that match 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 legally and morally bound to operate in their clients' best interests at all times.
- Client's Best Interest: Advisors must focus on the client's financial health over their own profit.
- Comprehensive Care: They must reveal all conflicts of interest, ensure transparency, and provide the highest standard of care in their recommendations and actions.
- Oversight: 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
- Appropriateness: Financial advisors only 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 consider their own interests as long as the suggestions are appropriate.
- Possible Conflicts: Financial advisors may earn commissions from the sale of financial products, which can create conflicts of interest.
- Regulation: Governed 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 stipulates that fiduciary advisors must serve in their clients' "best interest," while FINRA Rule 2111 stipulates that dealer-brokers and other non-fiduciaries only 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 | Mandates advisors to act in the client's most favorable financial interest. | Requires advisors to recommend appropriate products or plans based on provided information. |
Standard of Care | Higher level of care making sure every action aligns with the client's best outcome. | Guarantees recommendations are appropriate and make sense for the client's circumstances. |
Client-Centric Approach | Financial advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
Transparency | Full disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, so 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, requiring regular reviews and updates. | Emphasizes the suitability of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
Conflict of Interest | Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the suggestion remains appropriate. |
Long-Term Commitment | Financial advisors have a continuous obligation to oversee and update the client's financial plan. | Regular reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Lincoln, NE
Opting to collaborate with a fiduciary financial advisor in Lincoln, NE brings to the table an array of benefits that can deeply impact your financial health:
- Fiduciary financial advisers must act in your best interest and maintain high standards
- Total disclosure of essential materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Lincoln, NE family
- Make investments on your behalf utilizing their expertise to craft and handle a diversified portfolio that matches 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 personalized approach
- Ongoing monitoring and direction to guarantee your financial strategies and investments remain on track and that you can adapt to any surprises the market or life presents your way
- Diminished risk with wise and responsible investment choices done by thoroughly assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being watched over by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life situations change
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive financial planning services are created to provide you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to understand your unique financial situation and adapt strategies that suit your life aspirations.
Personalized Financial Roadmap
We begin by performing a detailed analysis of your present 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 balance your portfolio, balancing your risk tolerance with your time horizon. Our team continuously monitors and adjusts your investments to align with your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.
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 securely and safely.
Tax Planning
Effective tax planning ensures more of your hard-earned money in your pocket and your family. Our advisors are highly knowledgeable in tax laws and strategies that can lower your tax liability and boost your overall financial health.
Legacy Planning
We also provide informed guidance on estate planning to assist you in protecting your legacy. From wills and trusts to estate tax strategies, we ensure your assets are allocated according to your wishes while lowering tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a one-time event but a constant process. We deliver ongoing monitoring and routine reviews to adapt your financial plan to any shifts in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is deeply 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 Lincoln, NE include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Lincoln, NE Fiduciary Financial Advisor
Choosing a financial advisor in Lincoln, NE with a fiduciary standard is vital to guarantee 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 Lincoln, NE individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications necessary 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.
Reach out to us today at 314-930-401(k) or contact us through our website to arrange an appointment and discover how we can aid you reach your financial goals in Lincoln, NE.