Fiduciary Financial Advisor in Providence, RI

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Fiduciary financial advisor in Providence, RI. For those in Providence, RI who don't have the free time, knowledge, or inclination to manage their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're planning for retirement, seeking to increase 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 Providence, RI, you'll have a partner who has a legal and ethical responsibility to put your own best interests first.

At Correct Capital Wealth Management, our Providence, RI fiduciary financial advisors won't ever suggest a solution, investment, or approach that we don't genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest at heart, call Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule an appointment with on of our advisors.



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What Is a Fiduciary?

A fiduciary is a individual or entity that holds a role of confidence and responsibility when handling assets, monetary matters, or legal affairs on behalf of another. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.

Common examples of fiduciaries are:

  • Trustees — People or entities responsible for handling and monitoring assets held in a trust for the gain of beneficiaries.
  • Executors — Individuals chosen to manage the estate and assets of a deceased person as per their will or the law.
  • Financial advisors — Professionals who provide financial advice and manage investments for clients, with an duty to prioritize the client's financial goals.
  • Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
  • Guardians — People designated by the court to make decisions on behalf of underage individuals or individuals who are incapable to make decisions for themselves.
  • Attorneys — Legal professionals who are obligated by a fiduciary duty to operate in the best interests of their clients when managing their cases.
  • Real estate agents — Experts who aid clients in purchasing, 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 are required to act in "good faith," which means they engage with their clients or beneficiaries honestly, with sincerity, and without any aim to deceive or damage the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients as a priority.

2. Duty of Loyalty

Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They must steer clear of any conflicts of interest that could jeopardize their ability to act only in the beneficiary's best interests. All conflicts of interest need to be made known to the client and the advisor must still act with the beneficiary's interest over their own.

3. Duty of Care

Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make well-informed and thoughtful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to shield and grow the assets under their care while mitigating risks.

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What Is a Fiduciary Financial Advisor in Providence, RI?

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

Any individual in Providence, RI 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 have to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications demand ongoing education and a rigorous moral standard.

For instance, 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 Providence, RI Fiduciaries?

Not all financial advisor in Providence, RI are fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:

  • Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands recommendations to be appropriate for clients but does not mandate the same duties of loyalty and care.
  • Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation open and minimizing conflicts of interest. Other advisors generally receive commissions or other forms of compensation associated with product sales, which means they might make recommendations that are more in their interest than yours.

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 ahead of time, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase considering 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 may apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:

  • Overall economic conditions
  • Potential inflation or deflation
  • Expected tax consequences of investments
  • The part that each investment or approach plays within your portfolio
  • Expected profit and appreciation of capital
  • Additional assets and resources you have
  • Your needs for liquidity, income, and preservation of capital
  • An asset's distinctive 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 standard” are merely required to suggest investments or financial products that align with your goals, 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 morally obligated to operate in their clients' best interests at all times.
  • Best Interest: Financial advisors must focus on the client's financial well-being over their own profit.
  • Comprehensive Care: They must reveal all conflicts of interest, ensure transparency, and deliver the highest level of care in their recommendations and actions.
  • Oversight: 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 merely need to ensure that their recommendations are suitable for the client’s financial requirements and objectives at the time of the transaction.
  • Reduced Care Standard: Financial advisors can take into account their own interests as long as the suggestions are appropriate.
  • Potential Conflicts: Financial 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 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 serve in their clients' "best interest," while FINRA Rule 2111 stipulates 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 managing a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Mandates financial advisors to act in the client's best financial interest. Mandates advisors to recommend appropriate investment products or strategies based on provided information.
Standard of Care Superior level of care making sure every action conforms with the client's optimal outcome. Ensures suggestions are appropriate and make sense for the client's situation.
Client-Centric Approach Financial advisors focus on client's goals, 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 mandated. Looser disclosure requirements, as long as the recommendation is appropriate.
Due Diligence Suggestions based on a comprehensive evaluation of the client's financial situation. Suggestions based on reasonable research and analysis.
Ongoing Duty Ongoing duty to act in the client's best interest, demanding regular reviews and updates. Stresses the suitability of advice at the time of the recommendation, with reduced focus on ongoing oversight.
Conflict of Interest Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. Conflicts are more loosely governed, as long as the suggestion remains suitable.
Long-Term Commitment Financial advisors have a ongoing obligation to monitor and update the client's financial plan. Periodic reviews are advised, but the focus is on the suitability of initial suggestions.

Benefits of Working with a Fiduciary Financial Advisor in Providence, RI

Choosing to partner with a fiduciary financial advisor in Providence, RI brings to the table an array of benefits that can significantly affect your financial health:

  • Fiduciary financial advisers are obligated to act in your best interest and adhere to high standards
  • Complete disclosure of relevant materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Providence, RI family
  • Handle investments on your behalf by leveraging their expertise to craft and handle a diversified portfolio that resonates with your goals and strategies
  • Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to establish a custom approach
  • Continuous monitoring and direction to guarantee your financial tactics and investments stay aligned and that you can adjust to any unexpected situations the market or life gives your way
  • Reduced risk with prudent and judicious investment choices taken by carefully assessing the risk tied to each investment and shaping your portfolio to correspond with your risk tolerance
  • Relief that your best interests are being looked after by experienced financial professionals
  • A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions modify

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 reaching your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to understand your unique financial situation and tailor strategies that align with your life aspirations.


Personalized Financial Roadmap

We begin by performing a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us develop 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 align with your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.


Retirement Strategy

Planning for retirement is a cornerstone 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 comfortably and with confidence.


Tax Planning

Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can reduce your tax liability and boost your overall financial health.


Legacy Planning

We also provide informed guidance on estate planning to assist you in preserving your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while reducing tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a single event but a ongoing process. We deliver ongoing monitoring and routine reviews to adjust your financial plan to any changes in your life circumstances or economic environment.


Client-Focused Strategy

At Correct Capital, our approach is highly client-centric. We take pride in building lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are dedicated to helping you attain your financial goals with integrity and excellence.

Other services we offer in Providence, RI include:


Hire Correct Capital as Your Providence, RI Fiduciary Financial Advisor

Choosing a financial advisor in Providence, RI with a fiduciary standard is essential to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Providence, RI 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 skills and qualifications necessary 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.

Contact us now at 314-930-401(k) or contact us through our website to arrange an appointment and discover how we can help you reach your financial goals in Providence, RI.

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