Fiduciary financial advisor in Swansea, IL. For those in Swansea, IL who don't have the time, expertise, or inclination to manage their investments and retirement accounts on their own, partnering with a financial advisor provides peace of mind. Trust is vital in that partnership, and whether you're planning for retirement, looking 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 Swansea, IL, you'll have a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Swansea, IL fiduciary financial advisors won't ever propose a solution, investment, or strategy that we do not truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a individual or entity that holds a position of trust and responsibility when handling assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically obliged to work in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to prioritize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — Individuals chosen by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to act in the best interests of their clients when managing legal matters.
- Real estate agents — Experts who help 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any aim to mislead or harm the interests of their beneficiaries. They must consistently 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 should eschew any conflicts of interest that could impair their capability to act solely in the client's best interests. Every conflicts of interest need to be disclosed to the client or beneficiary and the advisor needs to still act with the 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 similar circumstances. They must make informed and careful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty confirms that they do their best to protect and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Swansea, IL?
Financial advisors help Swansea, IL individuals, families, and business owners achieve their life goals via a range of financial services and recommendations. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Swansea, IL can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications demand 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 Swansea, IL Fiduciaries?
Not all financial advisor in Swansea, IL are fiduciaries. The main reason is that financial advisors can operate under various regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks based on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires recommendations to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation associated with 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 cannot predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase based on an acceptable risk in light of the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Swansea, IL
Deciding to work with a fiduciary financial advisor in Swansea, IL provides an array of benefits that can deeply impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
- Full disclosure of essential materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Swansea, IL family
- Manage investments on your behalf by employing their expertise to create and handle a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a custom approach
- Ongoing monitoring and advice to ensure your financial tactics and investments stay aligned and that you can modify to any curveballs the market or life gives your way
- Minimized risk with sensible and responsible investment choices done by meticulously assessing the risk tied to each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being cared for by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals change over time, and life conditions modify
Choose Correct Capital as Your Swansea, IL Fiduciary Financial Advisor
Choosing a financial advisor in Swansea, IL with a fiduciary duty is vital to guarantee 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 Swansea, 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 expertise and qualifications necessary 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.
Reach out to us today at 877-930-4015 or contact us online to schedule an appointment and discover how we can help you attain your financial goals in Swansea, IL.
