Fiduciary financial advisor in St. Petersburg, FL. For St. Petersburg, FL residents who lack the free time, expertise, or interest to oversee their assets and retirement accounts themselves, partnering with a financial advisor provides peace of mind. Trust is vital in that partnership, and whether you're planning for retirement, looking to grow your wealth, or ensuring a stable financial future for your family, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in St. Petersburg, FL, you'll have a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our St. Petersburg, FL fiduciary financial advisors will never recommend a product, investment, or strategy that we do not sincerely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, call Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment 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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About Fiduciaries
A fiduciary is a person or organization that holds a position of trust and responsibility when overseeing assets, finances, or legal affairs for another person. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity they are serving, 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 are:
- Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of underage individuals or people 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 handling their cases.
- Real estate agents — Professionals who help clients in buying, 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required 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 harm the interests of their beneficiaries. They must always act honestly 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 prioritize the beneficiary's interests above their own. They should eschew any conflicts of interest that might impair their capacity to act exclusively in the beneficiary's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a prudent person would employ in the same or similar situations. They must make well-informed and careful decisions when overseeing assets or deciding on behalf of their client. This duty guarantees that they work diligently to shield and increase the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Petersburg, FL?
Financial advisors help St. Petersburg, FL individuals, families, and business owners achieve their life goals by means of a array of financial services and recommendations. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in St. Petersburg, FL 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 credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications demand ongoing education and a rigorous moral standard.
To illustrate, 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 St. Petersburg, FL Fiduciaries?
Not all financial advisor in St. Petersburg, FL is fiduciaries. The key reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight based on their business model. As an example, 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 requires advice to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation linked to product sales, which means they might 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 know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor select investments that a sensible person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- Your needs for liquidity, 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 operate under the “suitability standard” are merely obligated to suggest investments or financial products that align with your objectives, while financial advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are lawfully and morally bound 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.
- Full Disclosure: They must disclose all conflicts of interest, ensure transparency, and provide the highest level of care in their advice and actions.
- Regulation: 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 needs and objectives at the time of the transaction.
- Reduced Care Standard: Financial advisors can take into account their own interests as long as the suggestions are appropriate.
- Potential Conflicts: Financial advisors may earn commissions from the sale of financial products, which can create conflicts of interest.
- Regulation: 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 stipulates 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 suggestions. 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 optimal financial interest. | Demands advisors to recommend appropriate investment products or plans based on provided information. |
Standard of Care | Higher level of care making sure every action matches with the client's best outcome. | Ensures suggestions are proper and make sense for the client's situation. |
Client-Centric Approach | Financial 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 | Full disclosure of potential conflicts of interest is mandated. | More relaxed disclosure requirements, so long as 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, demanding regular reviews and updates. | Emphasizes the appropriateness of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
Conflict of Interest | Must disclose and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are less strictly regulated, as long as the suggestion remains appropriate. |
Long-Term Commitment | Financial advisors have a ongoing 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 St. Petersburg, FL
Choosing to partner with a fiduciary financial advisor in St. Petersburg, FL offers an array of advantages that can profoundly influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to professional standards
- Full disclosure of essential materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your St. Petersburg, FL family
- Manage investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to establish a personalized approach
- Ongoing monitoring and advice to ensure your financial plans and investments continue to be in line and that you can adapt to any curveballs the market or life presents your way
- Reduced risk with wise and accountable investment choices made by thoroughly assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Relief that your best interests are being watched over by experienced financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life scenarios alter
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 understand your unique financial situation and adapt strategies that match your life aspirations.
Customized Financial Roadmap
We begin by undertaking a thorough analysis of your present financial status, including income, expenses, assets, and liabilities. This helps us formulate a personalized financial roadmap that addresses your short-term needs and long-term objectives.
Financial Portfolio Management
We create personalized strategies to balance your portfolio, balancing your risk tolerance with your time horizon. Our team consistently monitors and adjusts your investments to meet your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.
Retirement Strategy
Planning for retirement is a key element of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to guarantee you can retire securely and safely.
Tax Planning
Effective tax planning helps keep 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 enhance your overall financial health.
Estate Planning
We also deliver informed guidance on estate planning to assist you in safeguarding your legacy. From wills and trusts to estate tax strategies, we make certain your assets are distributed according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a single event but a constant process. We deliver ongoing monitoring and routine reviews to adapt 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 lasting relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are devoted to helping you achieve your financial goals with integrity and excellence.
Other services we offer in St. Petersburg, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your St. Petersburg, FL Fiduciary Financial Advisor
Choosing a financial advisor in St. Petersburg, FL with a fiduciary duty is essential to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of St. Petersburg, FL 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 lead 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 today at 314-930-401(k) or contact us online to arrange an appointment and find out more about how we can aid you attain your financial goals in St. Petersburg, FL.