Fiduciary financial advisor in Shreveport, LA. For Shreveport, LA residents who lack the free time, skill, or interest to manage 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 planning for retirement, seeking to manage 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 Shreveport, LA, you'll have a ally who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Shreveport, LA fiduciary financial advisors won't ever propose a product, investment, or plan that we don't truly believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, call Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.
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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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What Is a Fiduciary?
A fiduciary is a person or entity that maintains a position of trust and responsibility when overseeing assets, monetary matters, or legal concerns on behalf of someone else. Fiduciaries are legally and ethically committed to act in the best interests of the person or entity 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 are:
- Trustees — Individuals or entities responsible for managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals designated 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 bound by a fiduciary duty to work in the best interests of their clients when dealing with their cases.
- Real estate agents — Specialists 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with sincerity, and without any design to deceive or harm the interests of their beneficiaries. They must always 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 above their own. They must steer clear of any conflicts of interest that might jeopardize their capacity to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be revealed to the client or beneficiary 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 degree of care, skill, and diligence that a judicious person would apply in like circumstances. They must make informed and careful decisions when managing assets or deciding on behalf of their client. This duty ensures that they work diligently to shield and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Shreveport, LA?
Financial advisors help Shreveport, LA individuals, families, and business owners achieve their life goals as they relate to their finances. These services comprise investment choices, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Shreveport, LA 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 maintaining these certifications demand continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Shreveport, LA Fiduciaries?
Not all financial advisor in Shreveport, LA are fiduciaries. The main reason is that financial advisors can function under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which demands strategies to be suitable 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 usually charge a percentage fee for their services, making their compensation transparent and limiting conflicts of interest. Other advisors typically receive commissions or different kinds of compensation tied to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
The Prudent-Person Rule
Fiduciary financial advisors need to abide by the Prudent-Person Rule, commonly 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 stipulates that a fiduciary financial advisor purchase investments that a prudent person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state might apply their own particular 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 approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- 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 expected 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 obligated to suggest investment products or financial products that align with your goals, while advisors with a fiduciary duty must operate in your best interest. Here are some important differences:
Fiduciary Duty
- Legal Obligation: Fiduciary financial advisors are lawfully and morally bound to operate in their clients' best interests at all times.
- Best Interest: 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 deliver the highest level of care in their recommendations and actions.
- Governance: 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
- Suitability: Financial advisors only need to ensure that their suggestions are appropriate for the client’s financial requirements and objectives at the time of the transaction.
- Lower Standard of Care: Advisors can take into account 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.
- Governance: Regulated 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 stipulates that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their suggestions. Here's a summary of what those terms mean in relation to dealing with a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Mandates advisors to act in the client's most favorable financial interest. | Mandates advisors to suggest suitable products or plans based on available information. |
| Standard of Care | Elevated level of care making sure every action aligns with the client's most favorable outcome. | Makes certain suggestions are proper 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 suggestions on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Total disclosure of potential conflicts of interest is necessary. | Looser disclosure requirements, so long as the suggestion is suitable. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Recommendations based on reasonable research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, necessitating regular reviews and updates. | Emphasizes the suitability of advice at the time of the recommendation, with minimal focus on ongoing oversight. |
| Conflict of Interest | Must reveal and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less tightly controlled, as long as the recommendation remains appropriate. |
| Long-Term Commitment | Advisors have a continuous obligation to oversee and adjust the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Shreveport, LA
Choosing to partner with a fiduciary financial advisor in Shreveport, LA offers an array of advantages that can significantly affect your fiscal 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 regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Shreveport, LA family
- Manage investments on your behalf by leveraging their expertise to craft and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to establish a custom approach
- Ongoing monitoring and advice to guarantee your financial plans and investments remain on track and that you can modify to any unexpected situations the market or life gives your way
- Diminished risk with sensible and responsible investment choices taken by thoroughly assessing the risk tied to each investment and modifying your portfolio to match your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios modify
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our comprehensive financial planning services are crafted to provide you with a holistic approach to meeting your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to grasp your unique financial situation and tailor strategies that suit your life aspirations.
Tailored Financial Roadmap
We begin by performing a detailed analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Investment Portfolio Management
We develop personalized strategies to diversify your portfolio, making sure your risk tolerance aligns with your time horizon. Our team consistently 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 guarantee you can retire with ease and safely.
Tax Planning
Effective tax planning ensures more of your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are distributed according to your wishes while reducing tax burdens.
Continuous Oversight
Financial planning is not a one-time event but a ongoing process. We deliver ongoing monitoring and periodic 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 deeply client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our top priority, and we are dedicated to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Shreveport, LA include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Shreveport, LA Fiduciary Financial Advisor
Selecting a financial advisor in Shreveport, LA with a fiduciary standard is vital to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Shreveport, LA individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed to assist 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.
Reach out to us today at 314-930-401(k) or contact us through our website to schedule an appointment and find out more about how we can assist you attain your financial goals in Shreveport, LA.
