Fiduciary Financial Advisor in Reno, NV

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Fiduciary financial advisor in Reno, NV. For those in Reno, NV who don't have the time, expertise, or inclination to handle their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, looking to increase your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Reno, NV, you'll have a confidante who has a legal and ethical responsibility to put your own best interests first.

At Correct Capital Wealth Management, our Reno, NV fiduciary financial advisors will never propose a product, investment, or approach that we do not truly believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, reach out to Correct Capital now at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.



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What Is a Fiduciary?

A fiduciary is a individual or organization that holds a position of confidence and responsibility when overseeing assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically bound to operate in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.

Common examples of fiduciaries include:

  • Trustees — Individuals or organizations charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
  • Executors — Individuals designated to oversee 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 duty to put first the client's financial well-being.
  • Corporate directors — Members 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 unable to make decisions for themselves.
  • Attorneys — Lawyers who are obligated by a fiduciary duty to act in the best interests of their clients when managing legal matters.
  • Real estate agents — Experts who assist 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 crucial facets 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 with integrity, with sincerity, and without any aim to mislead or damage 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 put first the beneficiary's interests above their own. They must steer clear of any conflicts of interest that might impair their ability to act solely in the client's best interests. All conflicts of interest must be made known to the client or beneficiary and the advisor needs to 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 employ in the same or similar situations. They must make informed and careful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they work diligently to protect and expand the assets within their care while reducing risks.

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What Is a Fiduciary Financial Advisor in Reno, NV?

Financial advisors help Reno, NV individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and more.

Anyone in Reno, NV can give themselves the title of "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. Obtaining and keeping these certifications require ongoing education and a rigorous moral standard.

To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Reno, NV Fiduciaries?

Not all financial advisor in Reno, NV is fiduciaries. The primary reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, leading to varying standards of care:

  • Regulatory framework — Financial advisors might be subject to various regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which demands strategies to be appropriate 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 proportional charge for their services, rendering their compensation transparent and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.

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 can't predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from 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 can 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 implications of investments
  • The part that each investment or strategy plays within your portfolio
  • Expected return and appreciation of capital
  • Additional assets and resources you possess
  • 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 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 only obligated to suggest investments 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

  • Legal Responsibility: Fiduciary financial advisors are lawfully and ethically bound to operate in their clients' best interests at all times.
  • Best Interest: 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.
  • Oversight: 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: Advisors only need to ensure that their recommendations are suitable for the client’s financial requirements and objectives at the time of the transaction.
  • Lower Standard of Care: Financial advisors can take into account their own interests as long as the suggestions are appropriate.
  • Possible Conflicts: Financial advisors may earn commissions from the sale of financial products, which can create conflicts of interest.
  • Governance: Governed 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 mandates that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 stipulates 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 handling a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Requires advisors to act in the client's best financial interest. Requires financial advisors to suggest suitable products or strategies based on provided information.
Standard of Care Superior level of care ensuring every action aligns with the client's optimal outcome. Ensures recommendations are appropriate 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 suggestions on the client's stated financial situation, objectives, and risk tolerance.
Transparency Complete disclosure of potential conflicts of interest is necessary. More relaxed disclosure requirements, as long as the recommendation is appropriate.
Due Diligence Recommendations based on a comprehensive evaluation of the client's financial situation. Recommendations based on reasonable research and analysis.
Ongoing Duty Continuous duty to act in the client's best interest, demanding regular reviews and updates. Focuses on the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight.
Conflict of Interest Must reveal and handle conflicts openly, ensuring clients are aware of potential biases. Conflicts are less tightly controlled, 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. Regular reviews are suggested, but the focus is on the suitability of initial suggestions.

Benefits of Working with a Fiduciary Financial Advisor in Reno, NV

Opting to collaborate with a fiduciary financial advisor in Reno, NV offers an array of benefits that can deeply affect your financial health:

  • Fiduciary financial advisers are required to act in your best interest and maintain ethical standards
  • Full disclosure of relevant materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Reno, NV family
  • Manage investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
  • Thorough financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to create a personalized approach
  • Continuous monitoring and advice to ensure your financial tactics and investments continue to be in line and that you can adapt to any surprises the market or life gives your way
  • Reduced risk with wise and accountable investment choices done by carefully assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
  • Assurance that your best interests are being watched over by knowledgeable financial advisors
  • A lasting relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life situations alter

What Financial Planning Services Do Fiduciary Advisors Offer?

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


Tailored Financial Roadmap

We begin by undertaking a detailed analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that caters to your short-term needs and long-term objectives.


Financial Portfolio Management

We develop 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 to changing market conditions.


Retirement Strategy

Planning for retirement is a key element of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to make certain you can retire with ease and with confidence.


Tax Planning

Effective tax planning ensures more of your hard-earned money in your pocket and your loved ones. Our advisors are expert in tax laws and strategies that can lower your tax liability and boost your overall financial health.


Estate Planning

We also offer informed guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we ensure your assets are distributed according to your wishes while minimizing tax burdens.


Ongoing Monitoring and Adjustments

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 changes in your life circumstances or economic environment.


Client-Centric Approach

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 reach your financial goals with integrity and excellence.

Other services we offer in Reno, NV include:


Choose Correct Capital as Your Reno, NV Fiduciary Financial Advisor

Choosing a financial advisor in Reno, NV with a fiduciary standard is vital to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Reno, NV residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed to lead 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 online to arrange an appointment and find out more about how we can help you achieve your financial goals in Reno, NV.

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