Fiduciary financial advisor in Newport News, VA. For Newport News, VA residents who don't have the time, knowledge, or interest to handle their investments and retirement accounts themselves, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to grow your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Newport News, VA, you'll gain a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Newport News, VA fiduciary financial advisors will never recommend a product, investment, or approach that we do not sincerely have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest at heart, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule a meeting 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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What Is a Fiduciary?
A fiduciary is a individual or organization that holds a role of trust and responsibility when managing assets, monetary matters, or legal affairs on behalf of another person. Fiduciaries are legally and ethically committed to work in the best interests of the person 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.
Typical examples of fiduciaries are:
- Trustees — Individuals or organizations responsible for handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals 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 handle investments for clients, with an duty to prioritize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of people under 18 or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when dealing with legal matters.
- Real estate agents — Specialists who help clients in buying, 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 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 design to mislead or harm the interests of their beneficiaries. They must consistently act with integrity 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 prioritize the beneficiary's interests over their own. They should eschew any conflicts of interest that could compromise their capability to act only in the client's best interests. All conflicts of interest must be revealed 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 employ the degree of care, skill, and diligence that a judicious person would apply in similar circumstances. They must make well-informed and considered decisions when managing assets or making decisions on behalf of their client. This duty ensures that they do their best to shield and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Newport News, VA?
Financial advisors help Newport News, VA individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment strategies, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Newport News, VA can give themselves the title of "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 have to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate persistent education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Newport News, VA Fiduciaries?
Not all financial advisor in Newport News, VA is fiduciaries. The primary reason is that financial advisors can work under various regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands strategies to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation open and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own particular laws. Missouri law, for example, stipulates 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 own
- 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 expected 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 obligated to suggest investments or financial products that align with your goals, while advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are lawfully and ethically obligated to act 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, guarantee transparency, and deliver the highest standard of care in their recommendations and actions.
- Governance: Regulated 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
- Appropriateness: Advisors merely need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Lower Standard of Care: Advisors can consider their own interests as long as the suggestions are appropriate.
- Possible Conflicts: Advisors may earn commissions from the sale of financial products, which can create conflicts of interest.
- Governance: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates a “reasonable basis” that an investment is suitable for the client.
- Instances: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 stipulates 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 recommendations. 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 | Demands financial advisors to act in the client's optimal financial interest. | Mandates advisors to suggest suitable products or plans based on provided information. |
| Standard of Care | Superior level of care making sure every action matches with the client's optimal outcome. | Ensures 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. | Financial advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is mandated. | More relaxed disclosure requirements, so long as the recommendation 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 | Unceasing 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 reduced focus on ongoing oversight. |
| Conflict of Interest | Must disclose and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the suggestion remains appropriate. |
| Long-Term Commitment | Financial advisors have a ongoing obligation to oversee and adjust the client's financial plan. | Periodic reviews are recommended, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Newport News, VA
Choosing to partner with a fiduciary financial advisor in Newport News, VA offers an array of benefits that can deeply affect your monetary health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Total disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Newport News, VA family
- Manage investments on your behalf by employing their expertise to create and handle a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
- Consistent monitoring and direction to guarantee your financial plans and investments continue to be in line and that you can adapt to any surprises the market or life gives your way
- Reduced risk with prudent and responsible investment choices done by carefully assessing the risk tied to each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing financial planning services are designed to provide you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to understand your unique financial situation and customize strategies that match your life aspirations.
Customized Financial Roadmap
We begin by conducting a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that meets your short-term needs and long-term objectives.
Investment Portfolio Management
We craft personalized strategies to diversify your portfolio, balancing your risk tolerance with your time horizon. Our team consistently monitors and adjusts your investments to meet your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.
Retirement Planning
Planning for retirement is a key element of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire comfortably and securely.
Tax Planning
Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can reduce your tax liability and enhance your overall financial health.
Legacy Planning
We also offer informed guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while reducing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a single event but a ongoing process. We provide 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 take pride in building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are committed to helping you attain your financial goals with integrity and excellence.
Other services we offer in Newport News, VA include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Newport News, VA Fiduciary Financial Advisor
Selecting a financial advisor in Newport News, VA with a fiduciary standard is vital to ensure 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 Newport News, VA 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 needed to guide 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.
Reach out to us today at 314-930-401(k) or contact us online to set up an appointment and discover how we can assist you reach your financial goals in Newport News, VA.
