Fiduciary Financial Advisor in Richmond, VA

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Fiduciary financial advisor in Richmond, VA. For Richmond, VA residents who don't have the time, expertise, or interest to manage their assets and retirement accounts themselves, 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 preparing for retirement, looking to increase your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Richmond, VA, you'll gain a ally who is legally and ethically committed to put your own best interests first.

At Correct Capital Wealth Management, our Richmond, VA fiduciary financial advisors will never recommend a solution, investment, or plan that we do not genuinely believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, call Correct Capital now at 314-930-401(k), fill out our online form, or schedule a meeting with a member of our advisor team.



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What Is a Fiduciary?

A fiduciary is a individual or entity that holds a role of confidence and duty when overseeing assets, monetary matters, or legal matters for another person. Fiduciaries are legally and ethically committed to work in the best interests of the individual 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.

Frequent examples of fiduciaries include:

  • Trustees — People or organizations tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
  • Executors — Individuals appointed to manage the estate and assets of a decedent based on their will or the law.
  • Financial advisors — Professionals who give financial advice and handle 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 — Individuals chosen by the court to make decisions on behalf of people under 18 or individuals who are unable to make decisions for themselves.
  • Attorneys — Legal professionals who are committed by a fiduciary duty to work in the best interests of their clients when managing their legal affairs.
  • Real estate agents — Experts who help 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 crucial elements 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 honestly, with sincerity, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients as a priority.

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 eschew any conflicts of interest that might compromise their ability to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be revealed to the client and the advisor must still act with the client/beneficiary's interest over their own.

3. Duty of Care

Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a wise person would apply in like circumstances. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client. This duty ensures that they work diligently to safeguard and increase the assets within their care while mitigating risks.

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What Is a Fiduciary Financial Advisor in Richmond, VA?

Financial advisors help Richmond, VA individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and others.

Any individual in Richmond, VA 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 qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand persistent education and a strict moral standard.

For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Richmond, VA Fiduciaries?

Not all financial advisor in Richmond, VA is fiduciaries. The main reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to varying 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 typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands advice to be appropriate for clients but doesn't require the same duties of loyalty and care.
  • Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation clear and limiting conflicts of interest. Other advisors usually 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 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 sensible person would purchase based on 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 subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:

  • Overall economic conditions
  • Potential inflation or deflation
  • Expected tax implications of investments
  • The role that each investment or strategy plays within your portfolio
  • Expected profit and appreciation of capital
  • Other assets and resources you own
  • 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 estimated 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 only required to recommend investments or products that align with your goals, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:

Fiduciary Duty

  • Legal Obligation: Fiduciary financial advisors are legally and morally obligated to operate 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 standard of care in their advice 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 merely need to ensure that their recommendations are appropriate 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 recommendations are suitable.
  • Possible Conflicts: Financial advisors may earn commissions from the sale of investment 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.
  • Examples: 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 mandates 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 Demands financial advisors to act in the client's best financial interest. Mandates advisors to recommend appropriate investment products or plans based on available information.
Standard of Care Elevated level of care ensuring every action aligns with the client's best outcome. Makes certain suggestions are proper and make sense for the client's situation.
Client-Centric Approach Advisors focus on client's goals, needs, and preferences above their own. Advisors base suggestions on the client's stated financial situation, objectives, and risk tolerance.
Transparency Complete disclosure of potential conflicts of interest is required. Less stringent disclosure requirements, as long as the suggestion is appropriate.
Due Diligence Recommendations based on a comprehensive evaluation of the client's financial situation. Recommendations based on adequate research and analysis.
Ongoing Duty Continuous duty to act in the client's best interest, requiring regular reviews and updates. Focuses on the appropriateness 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 Advisors have a continuous obligation to oversee and update the client's financial plan. Regular reviews are recommended, but the focus is on the suitability of initial recommendations.

Benefits of Working with a Fiduciary Financial Advisor in Richmond, VA

Opting to collaborate with a fiduciary financial advisor in Richmond, VA provides an array of benefits that can profoundly influence your financial health:

  • Fiduciary financial advisers must act in your best interest and uphold professional standards
  • Full disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Richmond, VA family
  • Handle investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
  • Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
  • Continuous monitoring and direction to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
  • Minimized risk with wise and responsible investment choices made by thoroughly assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
  • Peace of mind that your best interests are being cared for by knowledgeable financial professionals
  • A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life situations change

What Financial Planning Services Do Fiduciary Advisors Offer?

At Correct Capital Wealth Management, our holistic financial planning services are designed to provide you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis works diligently to comprehend your unique financial situation and adapt strategies that align with your life aspirations.


Personalized Financial Roadmap

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


Investment Portfolio Management

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


Retirement Planning

Planning for retirement is a foundation of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to ensure you can retire comfortably and safely.


Tax Planning

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


Legacy Planning

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


Continuous Oversight

Financial planning is not a single event but a continuous process. We deliver 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 profoundly client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are devoted to helping you attain your financial goals with integrity and excellence.

Other services we offer in Richmond, VA include:


Choose Correct Capital as Your Richmond, VA Fiduciary Financial Advisor

Selecting a financial advisor in Richmond, VA with a fiduciary duty is crucial to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Richmond, VA individuals and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential 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 today at 314-930-401(k) or contact us through our website to arrange an appointment and find out more about how we can assist you achieve your financial goals in Richmond, VA.

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