Fiduciary Financial Advisor in Rockford, IL

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Fiduciary financial advisor in Rockford, IL. For those in Rockford, IL who lack the free time, expertise, or inclination to handle their investments and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a stable 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 Rockford, IL, you'll have a partner who has a legal and ethical obligation to put your own best interests first.

At Correct Capital Wealth Management, our Rockford, IL fiduciary financial advisors will never propose a product, investment, or approach that we don't sincerely trust 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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Understanding Fiduciaries

A fiduciary is a person or organization that occupies a position of trust and responsibility when managing assets, finances, or legal matters for someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or organization 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.

Frequent examples of fiduciaries include:

  • Trustees — Individuals or entities charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
  • Executors — People chosen to oversee the estate and assets of a decedent as per their will or the law.
  • Financial advisors — Professionals who offer financial advice and manage investments for clients, with an obligation to put first the client's financial goals.
  • Corporate directors — Individuals of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
  • Guardians — People appointed by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
  • Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when managing their legal affairs.
  • 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 vital aspects to understanding fiduciary duty:

1. Good Faith

Fiduciaries are obligated to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with genuine intention, and without any design to mislead or damage the interests of their beneficiaries. They must always act honestly and with the best interests of the clients in mind.

2. Duty of Loyalty

Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests over their own. They must steer clear of any conflicts of interest that could impair their capability to act only in the client's best interests. Any conflicts of interest must be revealed to the client or beneficiary 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 employ in similar circumstances. They must make informed and considered decisions when handling assets or making decisions on behalf of their client. This duty guarantees that they work diligently to protect and expand the assets within their care while mitigating risks.

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What Is a Fiduciary Financial Advisor in Rockford, IL?

Financial advisors help Rockford, IL individuals, families, and business owners achieve their life goals through a range of financial services and proposals. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and more.

Any individual in Rockford, IL 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 must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications necessitate ongoing education and a stringent moral standard.

To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to comply with 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 Rockford, IL Fiduciaries?

Not all financial advisor in Rockford, IL is fiduciaries. The key reason is that financial advisors can work under different regulatory frameworks and compensation structures, leading to varying standards of care:

  • Regulatory framework — Financial advisors can be subject to various regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands strategies to be appropriate for clients but does not mandate the same duties of loyalty and care.
  • 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 minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms 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 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 with 100% certainty, but mandates that a fiduciary financial advisor purchase 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 subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:

  • General economic conditions
  • Potential inflation or deflation
  • Expected tax implications of investments
  • The part that each investment or course of action 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 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 standard” are merely obligated to suggest investments or financial products that match your goals, while advisors with a fiduciary duty must act in your best interest. Here are some key 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: Financial advisors must prioritize the client's financial health over their own profit.
  • Comprehensive Care: They must reveal all conflicts of interest, ensure transparency, and provide the highest standard of care in their recommendations and actions.
  • Regulation: Governed by the Investment Advisers Act of 1940, which requires 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 only 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 recommendations are appropriate.
  • Possible Conflicts: Financial advisors may earn 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 appropriate 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 serve in their clients' "best interest," while FINRA Rule 2111 requires 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 advisors to act in the client's best financial interest. Mandates financial advisors to recommend appropriate investment products or plans based on available information.
Standard of Care Superior level of care ensuring every action matches with the client's optimal outcome. Makes certain suggestions are suitable and make sense for the client's situation.
Client-Centric Approach Financial advisors prioritize 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 Complete disclosure of potential conflicts of interest is required. Less stringent disclosure requirements, as long as the suggestion is proper.
Due Diligence Recommendations 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, demanding regular reviews and updates. Stresses the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight.
Conflict of Interest Must disclose and handle conflicts openly, ensuring clients are aware of potential biases. Conflicts are less strictly regulated, as long as the recommendation remains suitable.
Long-Term Commitment Advisors have a continuous obligation to oversee and update the client's financial plan. Periodic reviews are recommended, but the focus is on the suitability of initial suggestions.

Benefits of Working with a Fiduciary Financial Advisor in Rockford, IL

Choosing to partner with a fiduciary financial advisor in Rockford, IL provides an array of advantages that can significantly impact your monetary health:

  • Fiduciary financial advisers must act in your best interest and adhere to ethical standards
  • Full disclosure of pertinent materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Rockford, IL family
  • Handle investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that aligns with your financial goals and risk tolerance
  • Comprehensive financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
  • Consistent monitoring and direction to ensure your financial strategies and investments remain on track and that you can adjust to any curveballs the market or life gives your way
  • Diminished risk with wise and judicious investment choices done by carefully assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
  • Peace of mind that your best interests are being looked after by knowledgeable financial professionals
  • A prolonged relationship with a fiduciary financial advisor that understands 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 created to provide you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to grasp your unique financial situation and tailor strategies that align with your life aspirations.


Tailored Financial Roadmap

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


Financial Portfolio Management

We develop personalized strategies to balance your portfolio, balancing your risk tolerance with your time horizon. Our team continuously monitors and adjusts your investments to meet your financial goals, ensuring that your portfolio remains robust and adaptable to changing market conditions.


Retirement Planning

Planning for retirement is a foundation of our comprehensive financial planning. We help you navigate the complexities of retirement accounts, social security benefits, and income strategies to ensure 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 highly knowledgeable 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 help you protecting your legacy. From wills and trusts to estate tax strategies, we ensure your assets are allocated according to your wishes while reducing tax burdens.


Continuous Oversight

Financial planning is not a once-off event but a ongoing process. We provide ongoing monitoring and periodic reviews to modify your financial plan to any changes in your life circumstances or economic environment.


Client-Focused Strategy

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

Other services we offer in Rockford, IL include:


Choose Correct Capital as Your Rockford, IL Fiduciary Financial Advisor

Selecting a financial advisor in Rockford, IL with a fiduciary duty is vital 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 Rockford, IL 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 assist 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.

Get in touch with us now at 314-930-401(k) or contact us online to set up an appointment and learn more about how we can help you attain your financial goals in Rockford, IL.

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