Fiduciary financial advisor in Madison County, IL. For those in Madison County, IL who lack the time, knowledge, or inclination to oversee their assets and retirement accounts themselves, 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 loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Madison County, IL, you'll have a confidante who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Madison County, IL fiduciary financial advisors won't ever suggest a solution, investment, or strategy that we do not genuinely trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, call Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a position of confidence and responsibility when handling assets, monetary matters, or legal matters on behalf of another person. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or institutions charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals chosen by the court to make decisions on behalf of people under 18 or people who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with legal matters.
- Real estate agents — Specialists who assist 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 aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries honestly, with sincerity, and without any aim to deceive or harm the interests of their beneficiaries. They must continually 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 beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They should steer clear of any conflicts of interest that could jeopardize their ability to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be revealed to the client or beneficiary and the advisor has to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make well-informed and thoughtful decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to safeguard and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Madison County, IL?
Financial advisors help Madison County, IL individuals, families, and business owners achieve their life goals via a variety of financial services and proposals. These services include investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Madison County, IL can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require continuous education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to adhere to 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 Madison County, IL Fiduciaries?
Not all financial advisor in Madison County, IL are fiduciaries. The main reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which requires recommendations to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation open and limiting conflicts of interest. Other advisors typically receive commissions or other forms of compensation linked to product sales, which means they might 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, often 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 go for investments that a sensible person would purchase based on an acceptable risk in light of the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- 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
Benefits of Working with a Fiduciary Financial Advisor in Madison County, IL
Opting to collaborate with a fiduciary financial advisor in Madison County, IL offers an array of benefits that can profoundly affect your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
- Complete disclosure of pertinent materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Madison County, IL family
- Manage investments on your behalf by employing their expertise to develop and manage a diversified portfolio that aligns with your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to establish a personalized approach
- Consistent monitoring and direction to guarantee your financial tactics and investments remain on track and that you can modify to any surprises the market or life presents your way
- Diminished risk with wise and responsible investment choices done by thoroughly assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations alter
Choose Correct Capital as Your Madison County, IL Fiduciary Financial Advisor
Choosing a financial advisor in Madison County, IL with a fiduciary standard is vital to ensure your long-term interests stay protected. 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 Madison County, IL 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 essential 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 today at 877-930-4015 or contact us online to arrange an appointment and discover how we can assist you reach your financial goals in Madison County, IL.
