Fiduciary financial advisor in O'Fallon, IL. For those in O'Fallon, IL who lack the time, expertise, or interest to handle their investments 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, seeking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in O'Fallon, IL, you'll gain a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our O'Fallon, IL fiduciary financial advisors won't ever recommend a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or entity that maintains a position of trust and responsibility when handling assets, monetary matters, or legal concerns for another. Fiduciaries are legally and ethically obliged to work in the best interests of the individual or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — Individuals or institutions charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and manage 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 given making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when handling their cases.
- Real estate agents — Specialists who aid 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 have an obligation to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with genuine intention, and without any aim to mislead or damage the interests of their beneficiaries. They must always 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 put first the beneficiary's interests above their own. They must avoid any conflicts of interest that might jeopardize their ability to act solely in the client's best interests. All conflicts of interest need to be disclosed to the client or beneficiary 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 exercise the standard of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make informed and thoughtful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they do their best to shield and increase the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in O'Fallon, IL?
Financial advisors help O'Fallon, IL individuals, families, and business owners achieve their life goals through a range of financial services and suggestions. These services comprise investment recommendations, retirement planning, tax planning, estate planning, asset management and more.
Anyone in O'Fallon, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications demand persistent education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to comply with 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 is fiduciaries. The main reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands advice to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation open and minimizing conflicts of interest. Other advisors generally receive commissions or other forms of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
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 ahead of time, but stipulates that a fiduciary financial advisor select investments that a sensible 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 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 implications of investments
- The part that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in O'Fallon, IL
Choosing to partner with a fiduciary financial advisor in O'Fallon, IL provides an array of benefits that can significantly influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and maintain high standards
- Full disclosure of essential materials and facts and full transparency with issues 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 craft and oversee a diversified portfolio that matches your goals and strategies
- Comprehensive financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to create a personalized approach
- Consistent monitoring and advice to guarantee your financial plans and investments remain on track and that you can adapt to any surprises the market or life throws your way
- Diminished risk with sensible and responsible investment choices done by carefully assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being cared for by skilled financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life situations change
Hire Correct Capital as Your O'Fallon, IL Fiduciary Financial Advisor
Selecting 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 prioritize 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 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.
Reach out to us today at 877-930-4015 or contact us through our website to set up an appointment and discover how we can assist you attain your financial goals in O'Fallon, IL.
