Fiduciary financial advisor in Port St. Lucie, FL. For those in Port St. Lucie, FL who don't have the free time, knowledge, or interest to handle their assets and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're planning for retirement, seeking to grow 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 Port St. Lucie, FL, you'll gain a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Port St. Lucie, FL fiduciary financial advisors won't ever suggest a product, investment, or approach that we do not truly believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital today at 314-930-401(k), contact us online, or schedule an appointment with a member of our advisor team.
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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 role of trust and duty when handling assets, monetary matters, or legal matters for someone else. Fiduciaries are legally and ethically bound to operate in the best interests of the person or entity they are serving, often referred to 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 — People or institutions responsible for handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to handle the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an responsibility to put first the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of people under 18 or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Specialists who assist 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 elements 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 truthfully, with genuine intention, and without any design to mislead or harm 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 above their own. They must steer clear of any conflicts of interest that might jeopardize their ability to act only in the client's best interests. Any conflicts of interest need to be revealed 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 apply the level of care, skill, and diligence that a judicious person would use in comparable circumstances. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client. This duty ensures that they strive to safeguard and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Port St. Lucie, FL?
Financial advisors help Port St. Lucie, FL individuals, families, and business owners realize their life goals via a range of financial services and suggestions. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Port St. Lucie, FL can label 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 need to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications demand ongoing education and a rigorous 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 Port St. Lucie, FL Fiduciaries?
Not all financial advisor in Port St. Lucie, FL are fiduciaries. The key reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires advice to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation transparent and reducing conflicts of interest. Other advisors usually receive commissions or other forms of compensation linked to product sales, which means they could 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, often 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 go for investments that a prudent person would purchase considering an acceptable risk based on 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, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- 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 work under the “suitability rule” are only obligated to recommend investment products or financial products that align with your goals, while financial advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Legal Responsibility: Fiduciary financial advisors are legally and ethically bound to act in their clients' best interests at all times.
- Client's Best Interest: Advisors must focus on the client's financial well-being over their own profit.
- Comprehensive Care: They must disclose all conflicts of interest, ensure transparency, and provide the highest level of care in their recommendations and actions.
- Regulation: Regulated 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: Advisors only need to ensure that their recommendations are suitable for the client’s financial needs 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.
- Possible Conflicts: Financial advisors may earn commissions from the sale of investment products, which can create conflicts of interest.
- Governance: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates 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 stipulates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 stipulates that dealer-brokers and other non-fiduciaries simply have a "reasonable basis" for their suggestions. Here's a summary of what those terms mean in relation to managing a client's investments and financial planning:
Best Interest | Reasonable Belief | |
---|---|---|
Definition | Mandates advisors to act in the client's best financial interest. | Requires financial advisors to recommend appropriate products or strategies based on available information. |
Standard of Care | Elevated level of care making sure every action matches with the client's most favorable outcome. | Guarantees recommendations are suitable and make sense for the client's circumstances. |
Client-Centric Approach | Advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base recommendations on the client's stated financial situation, objectives, and risk tolerance. |
Transparency | Total disclosure of potential conflicts of interest is required. | Looser disclosure requirements, as long as the suggestion is appropriate. |
Due Diligence | Suggestions based on a comprehensive evaluation of the client's financial situation. | Suggestions based on adequate research and analysis. |
Ongoing Duty | Unceasing 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 manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the recommendation remains appropriate. |
Long-Term Commitment | Advisors have a continuous obligation to oversee and update the client's financial plan. | Regular reviews are advised, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Port St. Lucie, FL
Choosing to partner with a fiduciary financial advisor in Port St. Lucie, FL provides an array of benefits that can profoundly influence your monetary health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Complete disclosure of relevant materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Port St. Lucie, FL family
- Handle investments on your behalf utilizing their expertise to craft and handle a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a personalized approach
- Ongoing monitoring and advice to guarantee your financial tactics and investments remain on track and that you can adapt to any curveballs the market or life throws your way
- Diminished risk with wise and responsible investment choices taken by thoroughly assessing the risk tied to each investment and tailoring your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing financial planning services are designed 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 tailor strategies that match your life aspirations.
Customized Financial Roadmap
We begin by undertaking a comprehensive analysis of your current 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.
Investment Portfolio Management
We craft personalized strategies to balance your portfolio, balancing your risk tolerance with your time horizon. Our team consistently monitors and adjusts your investments to meet your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.
Retirement Strategy
Planning for retirement is a key element of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire securely and with confidence.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your loved ones. Our advisors are well-versed in tax laws and strategies that can decrease your tax liability and boost your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to help you 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.
Ongoing Monitoring and Adjustments
Financial planning is not a once-off event but a ongoing process. We offer ongoing monitoring and periodic 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 take pride in building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are devoted to helping you reach your financial goals with integrity and excellence.
Other services we offer in Port St. Lucie, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Port St. Lucie, FL Fiduciary Financial Advisor
Choosing a financial advisor in Port St. Lucie, FL with a fiduciary duty is crucial to ensure 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 Port St. Lucie, FL 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 give 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 online to set up an appointment and learn more about how we can aid you reach your financial goals in Port St. Lucie, FL.