Fiduciary financial advisor in Omaha, NE. For Omaha, NE residents who lack the time, expertise, or interest to oversee their investments and retirement accounts themselves, working with a financial advisor provides peace of mind. Trust is paramount in that partnership, and whether you're planning for retirement, looking to increase your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Omaha, NE, 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 Omaha, NE fiduciary financial advisors will never propose a solution, investment, or approach that we don't genuinely have faith in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, call 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 person or entity that holds a position of trust and responsibility when handling assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions responsible for managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to manage the estate and assets of a deceased person according to 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 well-being.
- Corporate directors — Members of a company's board of directors who are entrusted with 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 people who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Professionals 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any intention to deceive or harm the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests above their own. They must eschew any conflicts of interest that could compromise their ability to act only in the beneficiary's best interests. Every conflicts of interest need to be disclosed 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 standard of care, skill, and diligence that a wise person would use in similar circumstances. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty ensures that they strive to shield and expand the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Omaha, NE?
Financial advisors help Omaha, NE 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.
Any person in Omaha, NE can call themselves a "financial advisor," but to say that they're 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 credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate continuous education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must adhere to 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 Omaha, NE Fiduciaries?
Not all financial advisor in Omaha, NE is fiduciaries. The key reason is that financial advisors can work under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function 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 method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation open and minimizing conflicts of interest. Other advisors typically 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 must abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor select investments that a sensible person would purchase from 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, 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 strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 operate under the “suitability standard” are only 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 important differences:
Fiduciary Duty
- Legal and Ethical Responsibility: 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 prioritize the client's financial health over their own profit.
- Comprehensive Care: They must disclose all conflicts of interest, guarantee transparency, and provide the highest level of care in their recommendations 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
- Suitability: Advisors merely need to ensure that their recommendations 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 recommendations are suitable.
- Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
- Regulation: Governed by the Financial Industry Regulatory Authority (FINRA), which requires a “reasonable basis” that an investment is suitable 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 operate in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries only 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 | Requires advisors to act in the client's most favorable financial interest. | Mandates advisors to recommend appropriate products or plans based on available information. |
| Standard of Care | Superior level of care ensuring every action matches with the client's most favorable outcome. | Ensures suggestions are appropriate and make sense for the client's situation. |
| Client-Centric Approach | Financial advisors focus on 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 | Complete disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, as long as the recommendation is suitable. |
| Due Diligence | Suggestions based on a comprehensive evaluation of the client's financial situation. | Suggestions based on adequate research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, demanding regular reviews and updates. | Emphasizes the appropriateness of advice at the time of the recommendation, with less 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 suitable. |
| Long-Term Commitment | Financial advisors have a continuous obligation to monitor and adjust 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 Omaha, NE
Choosing to partner with a fiduciary financial advisor in Omaha, NE brings to the table an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers must act in your best interest and maintain high standards
- Total disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Omaha, NE family
- Handle investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account 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 modify to any unexpected situations the market or life throws your way
- Diminished risk with sensible and judicious investment choices made by thoroughly assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life conditions alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic financial planning services are crafted to provide you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to understand your unique financial situation and customize strategies that align with your life aspirations.
Tailored Financial Roadmap
We begin by conducting a thorough analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Financial Portfolio Management
We develop personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team regularly monitors and adjusts your investments to align with your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.
Retirement Planning
Planning for retirement is a foundation of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire with ease and safely.
Tax Planning
Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are well-versed in tax laws and strategies that can decrease your tax liability and improve your overall financial health.
Legacy Planning
We also offer expert 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.
Continuous Oversight
Financial planning is not a once-off event but a continuous process. We offer ongoing monitoring and regular reviews to modify your financial plan to any alterations in your life circumstances or economic environment.
Client-Focused Strategy
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 top priority, and we are committed to helping you reach your financial goals with integrity and excellence.
Other services we offer in Omaha, NE include:
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Omaha, NE Fiduciary Financial Advisor
Choosing a financial advisor in Omaha, NE with a fiduciary duty is vital to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Omaha, NE residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge 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.
Reach out to us now at 314-930-401(k) or contact us through our website to set up an appointment and discover how we can aid you reach your financial goals in Omaha, NE.
