Fiduciary Financial Advisor in McKinney, TX

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Fiduciary financial advisor in McKinney, TX. For those in McKinney, TX who don't have the time, skill, or inclination to oversee their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to manage your wealth, or ensuring a safe 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 McKinney, TX, 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 McKinney, TX fiduciary financial advisors will never recommend a solution, investment, or plan 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 now at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.



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About Fiduciaries

A fiduciary is a individual or entity that holds a role of trust and duty when overseeing assets, monetary matters, or legal matters for another person. Fiduciaries are legally and ethically committed to operate 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 known as the fiduciary standard.

Common examples of fiduciaries include:

  • Trustees — People or institutions responsible for handling and overseeing assets held in a trust for the gain of beneficiaries.
  • Executors — People 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 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 designated by the court to make decisions on behalf of underage individuals or people who are incapable to make decisions for themselves.
  • Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when handling their legal affairs.
  • Real estate agents — Professionals who help clients in purchasing, selling, or renting properties and are required 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 elements 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 with integrity, with genuine intention, and without any design to mislead or damage 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 above their own. They should eschew any conflicts of interest that could jeopardize their ability to act solely in the client's best interests. All conflicts of interest need to be disclosed to the client 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 standard of care, skill, and diligence that a wise person would employ in similar circumstances. They must make well-informed and careful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty ensures that they do their best to shield and increase the assets under their care while minimizing risks.

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What Is a Fiduciary Financial Advisor in McKinney, TX?

Financial advisors help McKinney, TX individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment strategies, retirement consulting, tax planning, estate planning, portfolio management and others.

Any individual in McKinney, TX can label 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 qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications demand ongoing education and a rigorous moral standard.

For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to comply with 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 McKinney, TX Fiduciaries?

Not all financial advisor in McKinney, TX is fiduciaries. The primary reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:

  • Regulatory framework — Financial advisors might be subject to different regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands strategies to be appropriate for clients but doesn't require the same level of fiduciary duty.
  • Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Other advisors typically 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, often 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 mandates that a fiduciary financial advisor select investments that a sensible 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 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:

  • Overall economic conditions
  • Possible 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 liquidity, 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 estimated 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 merely required to recommend investment products or products that match your objectives, while financial advisors with a fiduciary duty must operate in your best interest. Here are some key differences:

Fiduciary Duty

  • Legal Obligation: Fiduciary financial advisors are lawfully and ethically bound to operate in their clients' best interests at all times.
  • Client's Best Interest: Financial advisors must focus on the client's financial well-being over their own profit.
  • Comprehensive Care: They must disclose all conflicts of interest, ensure transparency, and deliver the highest level of care in their recommendations and actions.
  • Governance: 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: Financial advisors only need to ensure that their recommendations are appropriate for the client’s financial requirements and objectives at the time of the transaction.
  • Lower Standard of Care: Financial advisors can consider their own interests as long as the recommendations are suitable.
  • Potential Conflicts: Financial advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
  • Governance: Regulated 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 mandates that fiduciary advisors must operate 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 breakdown of what those terms mean in relation to dealing with a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Demands advisors to act in the client's optimal financial interest. Demands advisors to recommend suitable products or plans based on available information.
Standard of Care Superior level of care ensuring every action conforms with the client's optimal outcome. Guarantees suggestions are proper and make sense for the client's situation.
Client-Centric Approach Advisors focus on client's goals, needs, and preferences above their own. Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Total disclosure of potential conflicts of interest is mandated. Less stringent disclosure requirements, provided the recommendation is suitable.
Due Diligence Recommendations based on a comprehensive evaluation of the client's financial situation. Suggestions based on adequate research and analysis.
Ongoing Duty Ongoing duty to act in the client's best interest, demanding regular reviews and updates. Focuses on the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight.
Conflict of Interest Must disclose and manage conflicts transparently, ensuring clients are aware of potential biases. Conflicts are less strictly regulated, as long as the recommendation remains appropriate.
Long-Term Commitment Financial advisors have a ongoing obligation to oversee 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 McKinney, TX

Choosing to partner with a fiduciary financial advisor in McKinney, TX offers an array of advantages that can profoundly affect your monetary health:

  • Fiduciary financial advisers must act in your best interest and maintain professional standards
  • Complete disclosure of essential materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your McKinney, TX family
  • Manage investments on your behalf by employing their expertise to craft and handle a diversified portfolio that matches your goals and strategies
  • Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
  • Consistent monitoring and direction to ensure your financial tactics and investments stay aligned and that you can adjust to any curveballs the market or life gives your way
  • Diminished risk with wise and responsible investment choices taken by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
  • Peace of mind that your best interests are being looked after by experienced financial professionals
  • A prolonged relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life situations modify

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our holistic financial planning services are crafted to provide you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to comprehend your unique financial situation and customize strategies that match your life aspirations.


Tailored Financial Roadmap

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


Financial Portfolio Management

We craft personalized strategies to diversify your portfolio, balancing your risk tolerance with your time horizon. Our team regularly monitors and adjusts your investments to match your financial goals, making sure that your portfolio remains robust and adaptable to changing market conditions.


Retirement Strategy

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 guarantee you can retire with ease and safely.


Tax Planning

Effective tax planning helps keep your hard-earned money with yourself and your loved ones. Our advisors are expert in tax laws and strategies that can lower your tax liability and enhance your overall financial health.


Legacy Planning

We also offer educated guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are passed on according to your wishes while lowering tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a single event but a continuous process. We offer ongoing monitoring and regular reviews to adjust your financial plan to any changes in your life circumstances or economic environment.


Client-Centric Approach

At Correct Capital, our approach is highly client-centric. We pride ourselves on building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are devoted to helping you attain your financial goals with integrity and excellence.

Other services we offer in McKinney, TX include:


Hire Correct Capital as Your McKinney, TX Fiduciary Financial Advisor

Selecting a financial advisor in McKinney, TX with a fiduciary standard is vital to ensure your long-term interests stay protected. 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 McKinney, TX 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 knowledge and qualifications essential to assist you on your financial journey. We offer 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 set up an appointment and find out more about how we can aid you reach your financial goals in McKinney, TX.

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