Fiduciary financial advisor in O'Fallon, IL. For those in O'Fallon, IL who don't have the time, knowledge, or inclination to oversee their assets and retirement accounts themselves, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow your wealth, or ensuring a safe financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in O'Fallon, IL, you'll gain a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our O'Fallon, IL fiduciary financial advisors won't ever propose a product, investment, or approach that we do not genuinely have faith in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a person or organization that holds a position of confidence and responsibility when overseeing assets, finances, or legal affairs for another. Fiduciaries are legally and ethically obliged to work in the best interests of the person or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — Individuals or institutions charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or people who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any intention to deceive or infringe upon 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 client, which means they must put first the beneficiary's interests over their own. They ought to avoid any conflicts of interest that might jeopardize their ability to act only in the client's best interests. All conflicts of interest need to be made known to the client or beneficiary and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a wise person would use in the same or similar situations. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to shield and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in O'Fallon, IL?
Financial advisors help O'Fallon, IL individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Any person in O'Fallon, IL can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications require ongoing education and a strict 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 O'Fallon, IL Fiduciaries?
Not all financial advisor in O'Fallon, IL are fiduciaries. The primary reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks based on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which requires recommendations to be appropriate 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 typically charge a proportional charge for their services, rendering their compensation open and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation associated with product sales, which means they may 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a reasonable person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in O'Fallon, IL
Opting to collaborate with a fiduciary financial advisor in O'Fallon, IL provides an array of benefits that can deeply affect your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to professional standards
- Full disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your O'Fallon, IL family
- Make investments on your behalf by leveraging their expertise to develop 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, taking into account all facets of your financial life to create a tailored approach
- Ongoing monitoring and guidance to ensure your financial tactics and investments remain on track and that you can adapt to any surprises the market or life throws your way
- Minimized risk with wise and responsible investment choices made by meticulously assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life scenarios modify
Hire Correct Capital as Your O'Fallon, IL Fiduciary Financial Advisor
Choosing a financial advisor in O'Fallon, IL with a fiduciary standard is crucial to ensure your long-term interests remain protected. 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 O'Fallon, IL individuals 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 needed to guide 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 877-930-4015 or contact us through our website to arrange an appointment and learn more about how we can aid you attain your financial goals in O'Fallon, IL.
