Fiduciary financial advisor in Madison County, IL. For Madison County, IL residents who don't have the free time, skill, or inclination to manage their assets and retirement accounts themselves, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to increase your wealth, or ensuring a safe financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Madison County, IL, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Madison County, IL fiduciary financial advisors won't ever recommend a product, investment, or plan that we do not genuinely believe in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, reach out to Correct Capital now at 314-930-401(k), contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a position of confidence and duty when handling assets, finances, 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 representing, often referred to 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 entities responsible for handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an duty to prioritize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or persons who are not able 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 dealing with legal matters.
- Real estate agents — Specialists who aid 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any design to mislead 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 beneficiary, which means they must put first the beneficiary's interests over their own. They must steer clear of any conflicts of interest that might jeopardize their capability to act solely in the client's best interests. All conflicts of interest must be made known to the client or beneficiary and the advisor must still act with the client/beneficiary's interest over 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 apply 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 confirms that they strive to safeguard and increase the assets under their care while minimizing 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 through a array of financial services and suggestions. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Madison County, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications require continuous education and a rigorous moral standard.
For instance, 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 Madison County, IL Fiduciaries?
Not all financial advisor in Madison County, IL are fiduciaries. The key reason is that financial advisors can function under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which mandates investments to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation transparent and reducing conflicts of interest. Other advisors typically 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 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 determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a prudent person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you have
- Your needs for readily available funds, income, and preservation of capital
- An asset's unique 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
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 advantages that can profoundly affect your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Full disclosure of relevant materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Madison County, IL family
- Handle investments on your behalf utilizing their expertise to develop and manage a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Consistent monitoring and direction to ensure your financial tactics and investments stay aligned and that you can modify to any surprises the market or life gives your way
- Reduced risk with prudent and accountable investment choices done by meticulously assessing the risk tied to each investment and tailoring your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by skilled financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions modify
Choose Correct Capital as Your Madison County, IL Fiduciary Financial Advisor
Choosing a financial advisor in Madison County, IL 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 hold in high regard the financial success and peace of mind of Madison County, IL 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 knowledge and qualifications essential to assist 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.