Fiduciary Financial Advisor in Pasadena, TX

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Fiduciary financial advisor in Pasadena, TX. For those in Pasadena, TX who don't have the free 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, looking to grow your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Pasadena, TX, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.

At Correct Capital Wealth Management, our Pasadena, TX fiduciary financial advisors will never recommend a product, investment, or plan that we do not sincerely trust in ourselves. For financial advisors that adhere to 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 an appointment with a member of our advisor team.



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What Is a Fiduciary?

A fiduciary is a individual or organization that occupies a position of confidence and duty when managing assets, monetary matters, or legal affairs for another. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.

Typical examples of fiduciaries include:

  • Trustees — Individuals or entities responsible for managing and overseeing assets held in a trust for the gain of beneficiaries.
  • Executors — People designated to oversee the estate and assets of a decedent as per their will or the law.
  • Financial advisors — Professionals who give financial advice and manage investments for clients, with an obligation to prioritize the client's financial well-being.
  • Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
  • Guardians — Individuals appointed 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 bound 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 purchasing, 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 interact with their clients or beneficiaries with integrity, with sincerity, and without any design to mislead or infringe upon the interests of their beneficiaries. They must always 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 beneficiary, which means they must put first the beneficiary's interests ahead of their own. They ought to eschew any conflicts of interest that could impair their ability to act solely in the beneficiary's best interests. All conflicts of interest need to be revealed to the client 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 degree of care, skill, and diligence that a wise person would employ in similar circumstances. They must make well-informed and thoughtful decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they do their best to safeguard and increase the assets under their care while minimizing risks.

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What Is a Fiduciary Financial Advisor in Pasadena, TX?

Financial advisors help Pasadena, TX individuals, families, and business owners attain their life goals through a variety of financial services and suggestions. These services include investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.

Any individual in Pasadena, TX can call 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 have to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications require persistent education and a strict moral standard.

As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Pasadena, TX Fiduciaries?

Not all financial advisor in Pasadena, TX are fiduciaries. The main reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:

  • Regulatory framework — Financial advisors might be subject to different regulatory frameworks based on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands advice to be suitable for clients but doesn't require the same level of fiduciary duty.
  • Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation linked to 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, also 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 go for investments that a sensible person would purchase from an acceptable risk in light of 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 can apply their own particular laws. Missouri law, for example, mandates 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 return and appreciation of capital
  • Additional assets and resources you own
  • Your needs for liquidity, income, and preservation of capital
  • An asset's special 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

Fiduciary Duty vs. Suitability Standard: What’s the Difference?

Advisors who work under the “suitability rule” are only required to recommend investment products or financial products that match your objectives, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:

Fiduciary Duty

  • Legal and Ethical Obligation: Fiduciary financial advisors are lawfully and ethically bound to act in their clients' best interests at all times.
  • Best Interest: Financial advisors must prioritize the client's financial well-being over their own profit.
  • Full Disclosure: They must disclose all conflicts of interest, guarantee transparency, and provide the highest level of care in their advice 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

  • Appropriateness: Financial advisors merely need to ensure that their suggestions are suitable for the client’s financial requirements and objectives at the time of the transaction.
  • Lower Standard of Care: Financial advisors can consider their own interests as long as the suggestions are suitable.
  • Potential Conflicts: Financial advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
  • Regulation: Regulated by the Financial Industry Regulatory Authority (FINRA), which requires 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 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 suggestions. 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 optimal financial interest. Demands financial advisors to suggest suitable investment products or strategies based on available information.
Standard of Care Elevated level of care ensuring every action matches with the client's most favorable outcome. Ensures recommendations 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 recommendations on the client's stated financial situation, objectives, and risk tolerance.
Transparency Complete disclosure of potential conflicts of interest is required. More relaxed disclosure requirements, so long as the suggestion is proper.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Suggestions based on reasonable research and analysis.
Ongoing Duty Continuous 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 minimal 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 recommendation remains appropriate.
Long-Term Commitment Financial advisors have a continuous obligation to oversee and adjust the client's financial plan. Periodic reviews are suggested, but the focus is on the suitability of initial suggestions.

Benefits of Working with a Fiduciary Financial Advisor in Pasadena, TX

Opting to collaborate with a fiduciary financial advisor in Pasadena, TX provides an array of advantages that can profoundly impact your fiscal health:

  • Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
  • Total disclosure of relevant materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Pasadena, TX family
  • Manage investments on your behalf by leveraging their expertise to craft and manage a diversified portfolio that resonates with your financial goals and risk tolerance
  • Thorough 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
  • Ongoing monitoring and advice to ensure your financial plans and investments stay aligned and that you can adapt to any unexpected situations the market or life presents your way
  • Reduced risk with prudent and judicious investment choices done by thoroughly assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
  • Assurance that your best interests are being watched over by knowledgeable financial advisors
  • A long-term relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life situations modify

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our holistic financial planning services are created to offer you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to grasp your unique financial situation and customize strategies that match your life aspirations.


Customized Financial Roadmap

We begin by performing a detailed analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us create a personalized financial roadmap that addresses your short-term needs and long-term objectives.


Financial Portfolio Management

We develop personalized strategies to diversify your portfolio, balancing your risk tolerance with your time horizon. Our team regularly monitors and adjusts your investments to match your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.


Retirement Strategy

Planning for retirement is a foundation 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 securely and safely.


Tax Planning

Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are highly knowledgeable in tax laws and strategies that can lower your tax liability and boost your overall financial health.


Legacy Planning

We also offer educated 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 reducing tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a once-off event but a continuous process. We provide ongoing monitoring and routine reviews to adjust your financial plan to any shifts 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 devoted to helping you achieve your financial goals with integrity and excellence.

Other services we offer in Pasadena, TX include:


Hire Correct Capital as Your Pasadena, TX Fiduciary Financial Advisor

Choosing a financial advisor in Pasadena, TX with a fiduciary standard is essential to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Pasadena, TX residents and business owners equally. Our team is comprised of 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 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 through our website to arrange an appointment and discover how we can help you achieve your financial goals in Pasadena, TX.

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