Fiduciary financial advisor in Tulsa, OK. For Tulsa, OK residents who don't have the free time, skill, or inclination to oversee their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. Trust is vital in that relationship, and whether you're planning for retirement, seeking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Tulsa, OK, you'll have a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Tulsa, OK fiduciary financial advisors won't ever recommend a product, investment, or plan that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and work 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 person or organization that maintains a role of trust and responsibility when overseeing assets, finances, or legal affairs for another. Fiduciaries are legally and ethically obliged to act in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent 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 designated to manage 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 responsibility to prioritize the client's financial goals.
- Corporate directors — Members 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 people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when handling their legal affairs.
- Real estate agents — Specialists who assist 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with genuine intention, and without any intention to mislead or harm 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 should eschew any conflicts of interest that might impair their ability to act only in the beneficiary's best interests. Any conflicts of interest need to be disclosed 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 exercise the standard of care, skill, and diligence that a prudent person would employ in the same or similar situations. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they strive to protect and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Tulsa, OK?
Financial advisors help Tulsa, OK individuals, families, and business owners attain their life goals as they relate to their finances. These services include investment choices, retirement planning, tax planning, estate planning, asset management and others.
Anyone in Tulsa, OK 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 need to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications require persistent education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Tulsa, OK Fiduciaries?
Not all financial advisor in Tulsa, OK is fiduciaries. The main reason lies in the fact that financial advisors can work under different regulatory frameworks and compensation structures, resulting 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 usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which requires investments to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds 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 are required 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 know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a sensible person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential 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
- Additional assets and resources you own
- Your needs for readily available funds, 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 investment products or 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
- 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 health over their own profit.
- Full Disclosure: They must reveal all conflicts of interest, guarantee transparency, and provide the highest standard of care in their advice and actions.
- Governance: Regulated 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
- Appropriateness: Financial advisors merely need to ensure that their recommendations are appropriate for the client’s financial needs and objectives at the time of the transaction.
- Lower Standard of Care: Advisors can consider their own interests as long as the recommendations are appropriate.
- Possible 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 requires a “reasonable basis” that an investment is appropriate for the client.
- Examples: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 mandates that fiduciary advisors must serve in their clients' "best interest," while FINRA Rule 2111 requires 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 managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Demands advisors to act in the client's most favorable financial interest. | Mandates advisors to recommend suitable investment products or plans based on provided information. |
| Standard of Care | Elevated level of care making sure every action aligns with the client's optimal outcome. | Makes certain suggestions are appropriate and make sense for the client's circumstances. |
| Client-Centric Approach | Advisors prioritize client's goals, needs, and preferences above their own. | Financial advisors base recommendations on the client's stated financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is necessary. | Looser disclosure requirements, so long as the recommendation is suitable. |
| Due Diligence | Suggestions 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. | Emphasizes the suitability 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 suggestion remains appropriate. |
| Long-Term Commitment | Financial advisors have a ongoing obligation to monitor and adjust the client's financial plan. | Regular reviews are advised, but the focus is on the suitability of initial suggestions. |
Benefits of Working with a Fiduciary Financial Advisor in Tulsa, OK
Deciding to work with a fiduciary financial advisor in Tulsa, OK offers an array of benefits that can profoundly affect your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain ethical standards
- Total disclosure of relevant materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Tulsa, OK family
- Handle investments on your behalf utilizing their expertise to create and manage a diversified portfolio that matches your goals and strategies
- Comprehensive financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a tailored approach
- Ongoing monitoring and guidance to ensure your financial plans and investments stay aligned and that you can adjust to any unexpected situations the market or life throws your way
- Reduced risk with prudent and accountable investment choices done by thoroughly assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life situations change
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our all-encompassing 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 works diligently to grasp your unique financial situation and adapt strategies that suit your life aspirations.
Tailored Financial Roadmap
We begin by performing 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 develop personalized strategies to diversify 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 to changing market conditions.
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 make certain 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 highly knowledgeable in tax laws and strategies that can lower your tax liability and enhance your overall financial health.
Estate Planning
We also deliver educated guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we ensure your assets are passed on according to your wishes while lowering tax burdens.
Continuous Oversight
Financial planning is not a once-off event but a continuous process. We provide ongoing monitoring and routine reviews to adjust your financial plan to any alterations in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly 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 reach your financial goals with integrity and excellence.
Other services we offer in Tulsa, OK include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Tulsa, OK Fiduciary Financial Advisor
Choosing a financial advisor in Tulsa, OK with a fiduciary duty is essential to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Tulsa, OK 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 lead 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 discover how we can aid you attain your financial goals in Tulsa, OK.
