Fiduciary financial advisor in Oklahoma City, OK. For Oklahoma City, OK residents who don't have the time, expertise, or interest to manage their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're preparing for retirement, seeking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Oklahoma City, OK, you'll gain a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Oklahoma City, OK fiduciary financial advisors won't ever propose a product, investment, or approach 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, call Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a position of trust and duty when handling assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically bound to operate in the best interests of the individual or organization they are representing, 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 — Individuals or entities charged with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Representatives 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 minors 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 managing their cases.
- Real estate agents — Experts 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any intention to deceive or infringe upon the interests of their beneficiaries. They must continually act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests over their own. They should avoid any conflicts of interest that might compromise their capacity to act only in the client's best interests. All conflicts of interest must be revealed to the client and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a judicious person would apply in similar circumstances. They must make well-informed and thoughtful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they work diligently to safeguard and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Oklahoma City, OK?
Financial advisors help Oklahoma City, OK individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in Oklahoma City, OK can label 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 accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications demand persistent education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Oklahoma City, OK Fiduciaries?
Not all financial advisor in Oklahoma City, OK is fiduciaries. The main 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 different regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation clear and limiting conflicts of interest. Other advisors usually receive commissions or different kinds of compensation tied 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 need to 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 determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action 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 unique 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
Fiduciary Duty vs. Suitability Standard: What’s the Difference?
Advisors who operate under the “suitability standard” are merely obligated to suggest investment products or financial products that align with your objectives, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are legally and ethically 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.
- Comprehensive Care: They must disclose all conflicts of interest, guarantee transparency, and deliver the highest standard of care in their recommendations and actions.
- Regulation: Governed 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
- Suitability: Financial advisors merely need to ensure that their suggestions are suitable for the client’s financial needs and objectives at the time of the transaction.
- Lower Standard of Care: Advisors can take into account their own interests as long as the suggestions are appropriate.
- Possible Conflicts: Advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
- Governance: Regulated 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 requires that fiduciary advisors must serve in their clients' "best interest," while FINRA Rule 2111 mandates 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 dealing with a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Requires advisors to act in the client's best 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 conforms with the client's optimal outcome. | Guarantees recommendations are proper and make sense for the client's situation. |
| Client-Centric Approach | Advisors prioritize client's objectives, needs, and preferences above their own. | Financial advisors base recommendations on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, provided the recommendation is suitable. |
| Due Diligence | Suggestions 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, requiring regular reviews and updates. | Stresses the suitability of advice at the time of the recommendation, with minimal focus on ongoing oversight. |
| Conflict of Interest | Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the recommendation remains appropriate. |
| Long-Term Commitment | Advisors have a ongoing obligation to monitor and update the client's financial plan. | Regular reviews are suggested, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Oklahoma City, OK
Deciding to work with a fiduciary financial advisor in Oklahoma City, OK provides an array of advantages that can profoundly impact your financial health:
- Fiduciary financial advisers are required to act in your best interest and uphold professional standards
- Total disclosure of pertinent materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Oklahoma City, OK family
- Make investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Continuous monitoring and direction to guarantee your financial plans and investments remain on track and that you can adapt to any unexpected situations the market or life presents your way
- Diminished risk with sensible and judicious investment choices taken by thoroughly assessing the risk linked with each investment and modifying your portfolio to match your risk tolerance
- Relief that your best interests are being watched over by experienced financial advisors
- A long-term 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 holistic financial planning services are designed to provide you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to comprehend your unique financial situation and tailor strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by performing a comprehensive analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Investment Portfolio Management
We create personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team continuously monitors and adjusts your investments to meet your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
Planning for retirement is a key element 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 with confidence.
Tax Planning
Effective tax planning ensures more of your hard-earned money with yourself and your family. Our advisors are well-versed in tax laws and strategies that can lower your tax liability and enhance your overall financial health.
Legacy Planning
We also provide expert guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we ensure your assets are passed on according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a one-time event but a constant process. We offer ongoing monitoring and routine reviews to adjust 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 take pride in building long-lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are dedicated to helping you reach your financial goals with integrity and excellence.
Other services we offer in Oklahoma City, OK include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Oklahoma City, OK Fiduciary Financial Advisor
Choosing a financial advisor in Oklahoma City, OK with a fiduciary standard is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Oklahoma City, OK 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 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.
Get in touch with us now at 314-930-401(k) or contact us through our website to set up an appointment and discover how we can assist you achieve your financial goals in Oklahoma City, OK.
