Fiduciary financial advisor in New Orleans, LA. For those in New Orleans, LA who don't have the free time, expertise, or interest to oversee their investments and retirement accounts themselves, working 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, seeking to manage your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in New Orleans, LA, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our New Orleans, LA fiduciary financial advisors won't ever recommend a product, investment, or approach that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital now at 314-930-401(k), contact us online, or schedule a meeting with a member of our advisor team.
Schedule a Meeting With an Advisor Today
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.
Schedule a 15-Minute Introductory Call
What Is a Fiduciary?
A fiduciary is a individual or organization that maintains a position of confidence and responsibility when handling assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically bound to operate in the best interests of the person or organization they are representing, often known 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 responsible for handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People chosen to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who offer financial advice and manage 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 given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when handling their cases.
- Real estate agents — Experts who help clients in buying, 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries honestly, with sincerity, and without any aim to deceive or harm the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests ahead of their own. They ought to steer clear of any conflicts of interest that could impair their capacity to act only 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 client/beneficiary's interest above 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 use in the same or similar situations. They must make informed and thoughtful decisions when handling assets or making decisions on behalf of their client. This duty guarantees that they do their best to safeguard and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in New Orleans, LA?
Financial advisors help New Orleans, LA individuals, families, and business owners achieve their life goals as they relate to their finances. These services comprise investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in New Orleans, LA can call themselves a "financial advisor," but to be 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. Securing and retaining these certifications require ongoing education and a stringent moral standard.
As an example, 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 New Orleans, LA Fiduciaries?
Not all financial advisor in New Orleans, LA is fiduciaries. The key reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which mandates strategies to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation open and limiting conflicts of interest. Non-fiduciary 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, also 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 mandates that a fiduciary financial advisor purchase investments that a sensible 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 eventually unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- 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 anticipated 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 suggest investments or financial products that align with your objectives, while financial advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Ethical Responsibility: Fiduciary financial advisors are legally and morally bound to operate in their clients' best interests at all times.
- Client's Best Interest: Financial advisors must focus on the client's financial health over their own profit.
- Full Disclosure: They must reveal all conflicts of interest, guarantee transparency, and deliver the highest standard of care in their advice and actions.
- Regulation: Governed 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
- Appropriateness: Advisors merely need to ensure that their suggestions are suitable for the client’s financial needs and objectives at the time of the transaction.
- Reduced Care Standard: Financial advisors can consider their own interests as long as the suggestions are suitable.
- Possible Conflicts: Advisors may earn commissions from the sale of investment 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 requires that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to managing a client's investments and financial planning:
Best Interest | Reasonable Belief | |
---|---|---|
Definition | Requires advisors to act in the client's most favorable financial interest. | Demands financial advisors to suggest appropriate products or plans based on provided information. |
Standard of Care | Superior level of care making sure every action aligns with the client's best outcome. | Makes certain suggestions are proper and make sense for the client's circumstances. |
Client-Centric Approach | Financial advisors focus on client's objectives, needs, and preferences above their own. | Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
Transparency | Full disclosure of potential conflicts of interest is mandated. | Looser disclosure requirements, provided the suggestion is suitable. |
Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Recommendations based on adequate research and analysis. |
Ongoing Duty | Continuous duty to act in the client's best interest, necessitating regular reviews and updates. | Stresses the suitability of advice at the time of the recommendation, with less focus on ongoing oversight. |
Conflict of Interest | Must disclose and handle conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the recommendation remains suitable. |
Long-Term Commitment | Financial advisors have a ongoing obligation to monitor and update the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in New Orleans, LA
Deciding to work with a fiduciary financial advisor in New Orleans, LA provides an array of advantages that can profoundly affect your financial health:
- Fiduciary financial advisers must act in your best interest and maintain professional standards
- Total disclosure of essential materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your New Orleans, LA family
- Make investments on your behalf by employing their expertise to create and manage a diversified portfolio that aligns with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to establish a tailored approach
- Ongoing monitoring and guidance to ensure your financial plans and investments remain on track and that you can adapt to any unexpected situations the market or life presents your way
- Reduced risk with wise and accountable investment choices done by carefully assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Assurance that your best interests are being watched over by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing financial planning services are created to provide you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to grasp your unique financial situation and customize strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by conducting a comprehensive 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.
Investment Portfolio Management
We craft personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team consistently monitors and adjusts your investments to meet 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 comfortably and securely.
Tax Planning
Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can lower your tax liability and improve your overall financial health.
Legacy Planning
We also deliver educated guidance on estate planning to help you preserving 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 constant process. We deliver ongoing monitoring and regular reviews to adapt your financial plan to any changes in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is deeply client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are devoted to helping you attain your financial goals with integrity and excellence.
Other services we offer in New Orleans, LA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your New Orleans, LA Fiduciary Financial Advisor
Selecting a financial advisor in New Orleans, LA with a fiduciary standard is crucial 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 hold in high regard the financial success and peace of mind of New Orleans, LA residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills 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.
Contact us today at 314-930-401(k) or contact us through our website to set up an appointment and learn more about how we can help you achieve your financial goals in New Orleans, LA.