Fiduciary Financial Advisor in Santa Ana, CA

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Fiduciary financial advisor in Santa Ana, CA. For those in Santa Ana, CA who lack the free time, knowledge, or inclination 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 preparing 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 choosing a fiduciary financial advisor in Santa Ana, CA, you'll have a ally who is legally and ethically committed to put your own best interests first.

At Correct Capital Wealth Management, our Santa Ana, CA fiduciary financial advisors will never propose a solution, investment, or plan that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest at heart, get in touch with Correct Capital today 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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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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Understanding Fiduciaries

A fiduciary is a individual or entity that holds a position of confidence and duty when handling assets, finances, or legal matters for someone else. 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 known as the fiduciary standard.

Frequent examples of fiduciaries include:

  • Trustees — People or organizations responsible for handling and overseeing assets held in a trust for the benefit of beneficiaries.
  • Executors — People chosen 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 handle investments for clients, with an duty to put first the client's financial well-being.
  • Corporate directors — Representatives of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
  • Guardians — Individuals designated by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
  • Attorneys — Legal professionals who are obligated by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
  • Real estate agents — Professionals who help 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 important elements to understanding fiduciary duty:

1. Good Faith

Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any intention to mislead or damage 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 beneficiary, which means they must put first the beneficiary's interests over their own. They must eschew any conflicts of interest that might jeopardize their ability to act exclusively in the beneficiary's best interests. Any conflicts of interest need to be disclosed to the client or beneficiary and the advisor has to still act with the beneficiary's interest above their own.

3. Duty of Care

Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they do their best to shield and expand the assets within their care while reducing risks.

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What Is a Fiduciary Financial Advisor in Santa Ana, CA?

Financial advisors help Santa Ana, CA individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.

Anyone in Santa Ana, CA can call 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 need to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications require ongoing education and a strict moral standard.

For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Santa Ana, CA Fiduciaries?

Not all financial advisor in Santa Ana, CA is fiduciaries. The key reason is that financial advisors can work under various regulatory frameworks and compensation structures, resulting to divergent 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 usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires strategies to be appropriate for clients but does not mandate the same level of fiduciary duty.
  • Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically 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, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase based on an acceptable risk considering the client's goals and investment objective.

The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:

  • Overall 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
  • Other assets and resources you have
  • Your needs for readily available funds, 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 operate under the “suitability rule” are merely required to recommend investment products or products that match your goals, while financial advisors with a fiduciary duty must act in your best interest. Here are some key differences:

Fiduciary Duty

  • Ethical Obligation: Fiduciary financial advisors are lawfully and ethically obligated to act in their clients' best interests at all times.
  • Client's Best Interest: Financial advisors must prioritize the client's financial well-being over their own profit.
  • Full Disclosure: They must reveal all conflicts of interest, guarantee transparency, and provide the highest level of care in their advice and actions.
  • Governance: 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

  • Suitability: Financial advisors merely 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.
  • Potential 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 mandates 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 requires that fiduciary advisors must serve 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 handling a client's investments and financial planning:


Best Interest Reasonable Belief
Definition Demands advisors to act in the client's most favorable financial interest. Demands financial advisors to suggest suitable products or strategies based on available information.
Standard of Care Higher level of care ensuring every action aligns with the client's most favorable outcome. Guarantees suggestions are suitable and make sense for the client's circumstances.
Client-Centric Approach Financial advisors prioritize client's goals, needs, and preferences above their own. Advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance.
Transparency Full disclosure of potential conflicts of interest is mandated. More relaxed disclosure requirements, provided the suggestion is proper.
Due Diligence Recommendations based on a comprehensive evaluation of the client's financial situation. Recommendations based on adequate research and analysis.
Ongoing Duty Ongoing duty to act in the client's best interest, necessitating regular reviews and updates. Focuses on the appropriateness of advice at the time of the recommendation, with less focus on ongoing oversight.
Conflict of Interest Must disclose and handle conflicts openly, ensuring clients are aware of potential biases. Conflicts are more loosely governed, as long as the recommendation remains appropriate.
Long-Term Commitment Financial advisors have a ongoing obligation to monitor 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 Santa Ana, CA

Deciding to work with a fiduciary financial advisor in Santa Ana, CA offers an array of benefits that can significantly influence your financial health:

  • Fiduciary financial advisers must act in your best interest and adhere to professional standards
  • Total disclosure of relevant materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Santa Ana, CA family
  • Make investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that matches your financial goals and risk tolerance
  • Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to devise a personalized approach
  • Continuous monitoring and guidance to ensure your financial tactics and investments stay aligned and that you can modify to any surprises the market or life presents your way
  • Minimized risk with sensible and accountable investment choices taken by thoroughly assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
  • Relief that your best interests are being watched over by skilled financial advisors
  • A prolonged relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life scenarios 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 achieving your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to understand your unique financial situation and tailor strategies that suit your life aspirations.


Personalized Financial Roadmap

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


Investment Portfolio Management

We create personalized strategies to balance your portfolio, making sure your risk tolerance aligns with your time horizon. Our team consistently monitors and adjusts your investments to match your financial goals, making sure 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 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 ensures more of your hard-earned money in your pocket and your family. Our advisors are well-versed in tax laws and strategies that can reduce your tax liability and boost your overall financial health.


Legacy Planning

We also provide educated guidance on estate planning to help you safeguarding your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while lowering tax burdens.


Ongoing Monitoring and Adjustments

Financial planning is not a single event but a ongoing process. We provide ongoing monitoring and regular reviews to adapt your financial plan to any shifts in your life circumstances or economic environment.


Client-Centric Approach

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

Other services we offer in Santa Ana, CA include:


Choose Correct Capital as Your Santa Ana, CA Fiduciary Financial Advisor

Choosing a financial advisor in Santa Ana, CA 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 pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Santa Ana, CA individuals 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 essential to guide you on your financial journey. We offer 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 aid you attain your financial goals in Santa Ana, CA.

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