Fiduciary financial advisor in Miami, FL. For those in Miami, FL who don't have the free time, knowledge, or inclination to handle their assets 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, seeking 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 choosing a fiduciary financial advisor in Miami, FL, you'll have a ally who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Miami, FL fiduciary financial advisors will never suggest a product, investment, or plan that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital now at 314-930-401(k), contact us through our wesbite, or schedule an appointment with on of our advisors.
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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 organization that occupies a position of trust and responsibility when managing assets, monetary matters, or legal concerns for another. Fiduciaries are legally and ethically bound to operate in the best interests of the individual 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.
Typical examples of fiduciaries are:
- Trustees — People or institutions charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an duty to emphasize 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 designated by the court to make decisions on behalf of underage individuals or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when managing their legal affairs.
- Real estate agents — Professionals who assist 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 crucial 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 honestly, with sincerity, and without any intention to mislead or infringe upon the interests of their beneficiaries. They must continually act with integrity and with the best interests of the clients at the forefront.
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 must avoid any conflicts of interest that could impair their capacity to act exclusively 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 over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a prudent person would apply 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 ensures that they do their best to protect and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Miami, FL?
Financial advisors help Miami, FL individuals, families, and business owners attain their life goals through a variety of financial services and suggestions. These services comprise investment strategies, retirement consulting, tax planning, estate planning, portfolio management and others.
Any individual in Miami, FL 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. Obtaining and retaining these certifications require persistent education and a rigorous moral standard.
To illustrate, 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 Miami, FL Fiduciaries?
Not all financial advisor in Miami, FL are fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which mandates investments to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with 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, commonly 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 stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase considering 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 can apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected return 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 required to recommend investment products or products that match your goals, while financial advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are legally and ethically bound to operate in their clients' best interests at all times.
- Client's Best Interest: Advisors must focus on the client's financial well-being over their own profit.
- Full Disclosure: They must disclose all conflicts of interest, ensure transparency, and deliver the highest standard of care in their recommendations and actions.
- Governance: Regulated by the Investment Advisers Act of 1940, which mandates that investment advisors have a fiduciary duty to their clients.
- ExamplesInstances: Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNER™ professionals.
Suitability Standard
- Suitability: Advisors only need to ensure that their suggestions are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Advisors can take into account their own interests as long as the suggestions are suitable.
- Potential Conflicts: Advisors may receive commissions from the sale of financial 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 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 act in their clients' "best interest," while FINRA Rule 2111 mandates 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 managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Mandates advisors to act in the client's best financial interest. | Requires advisors to suggest appropriate products or plans based on provided information. |
| Standard of Care | Elevated level of care ensuring every action aligns with the client's best outcome. | Ensures recommendations are appropriate and make sense for the client's circumstances. |
| Client-Centric Approach | Advisors focus on client's objectives, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is necessary. | More relaxed disclosure requirements, provided the recommendation is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on reasonable research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, necessitating regular reviews and updates. | Emphasizes the suitability of advice at the time of the recommendation, with minimal focus on ongoing oversight. |
| Conflict of Interest | Must disclose and manage conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
| Long-Term Commitment | Financial advisors have a continuous obligation to oversee and adjust 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 Miami, FL
Choosing to partner with a fiduciary financial advisor in Miami, FL brings to the table an array of advantages that can deeply affect your financial health:
- Fiduciary financial advisers must act in your best interest and maintain high standards
- Full disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Miami, FL family
- Manage investments on your behalf by leveraging their expertise to create and handle a diversified portfolio that resonates with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
- Consistent monitoring and direction to guarantee your financial tactics and investments continue to be in line and that you can adjust to any surprises the market or life presents your way
- Minimized risk with wise and responsible investment choices taken by thoroughly assessing the risk associated with each investment and shaping your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios change
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive financial planning services are crafted 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 adapt strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by conducting a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us create a personalized financial roadmap that meets 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 continuously 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 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 with confidence.
Tax Planning
Effective tax planning ensures more of your hard-earned money in your pocket and your loved ones. Our advisors are expert in tax laws and strategies that can reduce your tax liability and enhance your overall financial health.
Estate Planning
We also provide educated guidance on estate planning to assist you in protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while minimizing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a single event but a constant process. We deliver ongoing monitoring and routine reviews to adapt your financial plan to any alterations in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are dedicated to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Miami, FL include:
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Miami, FL Fiduciary Financial Advisor
Selecting a financial advisor in Miami, FL with a fiduciary duty is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Miami, FL individuals and business owners equally. Our team includes 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 give all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Contact 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 Miami, FL.
