Fiduciary financial advisor in Millstadt, IL. For Millstadt, IL residents who don't have the free time, knowledge, or inclination to manage their investments and retirement accounts themselves, 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 manage your wealth, or saving for your kids' education, the knowledge, skill, and honesty 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 obliged to put your own best interests first.
At Correct Capital Wealth Management, our Millstadt, IL fiduciary financial advisors will never recommend a product, investment, or plan that we do not truly have faith in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or organization that maintains a position of confidence and responsibility when handling assets, finances, or legal matters on behalf of someone else. Fiduciaries are legally and ethically obliged 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 referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or institutions tasked with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People designated to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of minors or people who are incapable 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 managing legal matters.
- Real estate agents — Specialists who help 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any intention to deceive 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 avoid any conflicts of interest that might compromise their capacity to act exclusively in the beneficiary's best interests. All conflicts of interest need to be made known to the client and the advisor must 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 wise person would apply in like circumstances. They must make informed and considered decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to shield and grow the assets under 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 recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Any individual in Millstadt, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications necessitate continuous education and a rigorous 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 are fiduciaries. The main reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires investments to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation clear and limiting conflicts of interest. Other advisors generally receive commissions or different kinds 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 must 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 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 originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state can 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 part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Millstadt, IL
Choosing to partner with a fiduciary financial advisor in Millstadt, IL offers an array of benefits that can deeply affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Total disclosure of pertinent materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Millstadt, IL family
- Manage investments on your behalf by employing their expertise to create and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Consistent monitoring and advice to ensure your financial strategies and investments continue to be in line and that you can adjust to any curveballs the market or life throws your way
- Reduced risk with wise and responsible investment choices done by carefully assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life conditions change
Hire Correct Capital as Your Millstadt, IL Fiduciary Financial Advisor
Selecting a financial advisor in Millstadt, 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 proud to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Millstadt, IL residents and business owners equally. Our team includes 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.
Contact us today at 877-930-4015 or contact us online to set up an appointment and learn more about how we can aid you attain your financial goals in Millstadt, IL.
