Fiduciary financial advisor in Syracuse, NY. For those in Syracuse, NY who lack the free time, skill, or inclination to oversee their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that relationship, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a safe financial future for your family, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Syracuse, NY, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Syracuse, NY fiduciary financial advisors will never recommend a solution, investment, or plan that we don't sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, call Correct Capital today at 314-930-401(k), contact us online, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a role of trust and responsibility when overseeing assets, finances, or legal matters for another. Fiduciaries are legally and ethically committed to operate in the best interests of the person or entity they are serving, 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 are:
- Trustees — People or entities charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to manage 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 emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or persons who are not able 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 legal matters.
- Real estate agents — Professionals who aid 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 crucial 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 with integrity, with genuine intention, and without any intention to deceive or harm the interests of their beneficiaries. They must continually 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 put first the beneficiary's interests over their own. They should avoid any conflicts of interest that might compromise their capability to act only in the client's best interests. All conflicts of interest need to be made known to the client and the advisor needs to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a wise person would employ in the same or similar situations. They must make well-informed and thoughtful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty confirms that they do their best to protect and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Syracuse, NY?
Financial advisors help Syracuse, NY individuals, families, and business owners attain their life goals through a array of financial services and suggestions. These services comprise investment recommendations, retirement planning, tax planning, estate planning, asset management and others.
Anyone in Syracuse, NY 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 have to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications necessitate continuous education and a rigorous 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 Syracuse, NY Fiduciaries?
Not all financial advisor in Syracuse, NY are fiduciaries. The main reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which requires strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation transparent and minimizing conflicts of interest. Other advisors typically receive commissions or other forms of compensation tied to product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually 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 approach 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 distinctive 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 only obligated to recommend investment products or financial products that match your objectives, 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 ethically bound to operate in their clients' best interests at all times.
- Client's Best Interest: Financial advisors must focus on the client's financial health over their own profit.
- Comprehensive Care: They must reveal all conflicts of interest, guarantee transparency, and deliver the highest level of care in their advice and actions.
- Oversight: 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
- Appropriateness: Financial advisors merely need to ensure that their recommendations 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 appropriate.
- Possible Conflicts: Advisors may receive commissions from the sale of financial 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 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 act in their clients' "best interest," while FINRA Rule 2111 mandates that dealer-brokers and other non-fiduciaries simply 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 | Requires financial advisors to act in the client's optimal financial interest. | Requires financial advisors to suggest 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. | Guarantees recommendations are suitable and make sense for the client's circumstances. |
| Client-Centric Approach | Financial advisors prioritize client's objectives, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, so long as the recommendation is suitable. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on adequate research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, requiring regular reviews and updates. | Focuses on the suitability of advice at the time of the recommendation, with reduced focus on ongoing oversight. |
| Conflict of Interest | Must disclose and manage conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
| Long-Term Commitment | Advisors have a ongoing obligation to monitor and update the client's financial plan. | Periodic reviews are suggested, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Syracuse, NY
Choosing to partner with a fiduciary financial advisor in Syracuse, NY brings to the table an array of advantages that can significantly influence your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Full disclosure of essential materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Syracuse, NY family
- Handle investments on your behalf utilizing their expertise to craft and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to establish a custom approach
- Ongoing monitoring and guidance to ensure your financial tactics and investments stay aligned and that you can modify to any unexpected situations the market or life gives your way
- Reduced risk with prudent and judicious investment choices taken by meticulously assessing the risk associated with each investment and tailoring your portfolio to match your risk tolerance
- Relief that your best interests are being looked after by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions change
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing 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 functions diligently to comprehend your unique financial situation and adapt strategies that match 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 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, making sure your risk tolerance aligns with your time horizon. Our team continuously monitors and adjusts your investments to match your financial goals, ensuring that your portfolio remains robust and adaptable as market conditions change.
Retirement Strategy
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 with ease and with confidence.
Tax Planning
Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are well-versed in tax laws and strategies that can decrease your tax liability and enhance your overall financial health.
Estate Planning
We also deliver educated guidance on estate planning to help you preserving your legacy. From wills and trusts to estate tax strategies, we ensure your assets are passed on according to your wishes while minimizing tax burdens.
Continuous Oversight
Financial planning is not a once-off event but a continuous process. We provide ongoing monitoring and periodic reviews to adapt your financial plan to any shifts in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is deeply client-centric. We take pride in building long-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 Syracuse, NY include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Syracuse, NY Fiduciary Financial Advisor
Selecting a financial advisor in Syracuse, NY with a fiduciary duty is essential to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Syracuse, NY residents 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 offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Reach out to us now at 314-930-401(k) or contact us through our website to set up an appointment and learn more about how we can aid you attain your financial goals in Syracuse, NY.
