Fiduciary financial advisor in Millstadt, IL. For Millstadt, IL residents who lack the free time, expertise, or inclination to oversee their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, looking to increase your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Millstadt, IL, you'll have a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Millstadt, IL fiduciary financial advisors won't ever recommend a solution, investment, or approach that we don't sincerely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that occupies a position of confidence and responsibility when handling assets, monetary matters, or legal matters on behalf of another. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or organizations charged with handling and overseeing assets held in a trust for the benefit 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 give financial advice and handle investments for clients, with an responsibility to prioritize the client's financial goals.
- Corporate directors — Representatives 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 people under 18 or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Professionals who assist 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with sincerity, and without any aim to mislead or harm the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must put first the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might compromise their capability to act solely in the beneficiary's best interests. All conflicts of interest need to be made known 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 apply the level of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make informed and considered decisions when managing assets or making decisions on behalf of their client. This duty confirms that they do their best to safeguard and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Millstadt, IL?
Financial advisors help Millstadt, IL individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Millstadt, IL can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications necessitate ongoing education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Millstadt, IL Fiduciaries?
Not all financial advisor in Millstadt, IL is 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 can be subject to different regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which mandates investments to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation linked to product sales, which means they could make recommendations that are more in their interest than yours.
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 cannot predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase based on an acceptable risk in light of 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 particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- Your needs for liquidity, 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
Benefits of Working with a Fiduciary Financial Advisor in Millstadt, IL
Deciding to work with a fiduciary financial advisor in Millstadt, IL offers an array of benefits that can profoundly influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Total disclosure of relevant materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Millstadt, IL family
- Manage investments on your behalf by employing their expertise to craft and handle a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to establish a personalized approach
- Consistent monitoring and guidance to guarantee your financial strategies and investments continue to be in line and that you can adapt to any unexpected situations the market or life presents your way
- Reduced risk with wise and accountable investment choices taken by carefully assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions modify
Hire Correct Capital as Your Millstadt, IL Fiduciary Financial Advisor
Selecting a financial advisor in Millstadt, IL 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 prioritize the financial success and peace of mind of Millstadt, IL 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 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.
Contact us today at 877-930-4015 or contact us online to arrange an appointment and discover how we can assist you achieve your financial goals in Millstadt, IL.
