Fiduciary financial advisor in Virginia Beach, VA. For those in Virginia Beach, VA who lack the free time, expertise, or inclination to oversee their assets and retirement accounts on their own, working with a financial advisor offers peace of mind. Trust is vital in that relationship, and whether you're preparing for retirement, seeking to grow your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Virginia Beach, VA, 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 Virginia Beach, VA fiduciary financial advisors won't ever propose a solution, investment, or plan that we do not sincerely have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest at heart, call Correct Capital today at 314-930-401(k), fill out our online form, or schedule a meeting 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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Understanding Fiduciaries
A fiduciary is a person or entity that maintains a role of trust and responsibility when handling assets, monetary matters, or legal affairs for another. Fiduciaries are legally and ethically committed to operate 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 known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or entities responsible for managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed 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 put first 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 chosen by the court to make decisions on behalf of underage individuals or individuals who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
- Real estate agents — Professionals who aid 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any intention to deceive or damage 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/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that might impair their ability to act exclusively in the client's best interests. Any conflicts of interest must be revealed to the client or beneficiary and the advisor has to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the degree of care, skill, and diligence that a prudent person would use 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 guarantees that they work diligently to safeguard and grow the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Virginia Beach, VA?
Financial advisors help Virginia Beach, VA individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Anyone in Virginia Beach, VA can label themselves a "financial advisor," but to say that they're 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 retaining these certifications necessitate 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 Virginia Beach, VA Fiduciaries?
Not all financial advisor in Virginia Beach, VA is fiduciaries. The key reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands investments to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation linked 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 must abide by the Prudent-Person Rule, often 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 select investments that a reasonable person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 operate under the “suitability standard” are only obligated to suggest investment products or products that match your goals, while advisors with a fiduciary duty must act in your best interest. Here are some important differences:
Fiduciary Duty
- Legal and Ethical Responsibility: Fiduciary financial advisors are lawfully and morally obligated to operate in their clients' best interests at all times.
- Client's Best Interest: Advisors must focus on the client's financial health over their own profit.
- Comprehensive Care: They must reveal all conflicts of interest, ensure transparency, and deliver the highest standard of care in their advice and actions.
- Governance: 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: Financial advisors merely 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 consider their own interests as long as the recommendations are appropriate.
- Possible Conflicts: Advisors may receive commissions from the sale of investment products, which can create conflicts of interest.
- Regulation: Governed by the Financial Industry Regulatory Authority (FINRA), which mandates 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 stipulates that fiduciary advisors must act in their clients' "best interest," while FINRA Rule 2111 requires 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 handling 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 advisors to recommend appropriate investment products or plans based on available information. |
Standard of Care | Elevated level of care ensuring every action conforms with the client's best outcome. | Guarantees recommendations are suitable and make sense for the client's situation. |
Client-Centric Approach | Financial advisors focus on 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 mandated. | More relaxed disclosure requirements, so long as the recommendation is proper. |
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, necessitating regular reviews and updates. | Stresses the appropriateness of advice at the time of the recommendation, with less focus on ongoing oversight. |
Conflict of Interest | Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains suitable. |
Long-Term Commitment | Financial advisors have a continuous obligation to monitor and adjust the client's financial plan. | Periodic reviews are advised, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Virginia Beach, VA
Deciding to work with a fiduciary financial advisor in Virginia Beach, VA provides an array of advantages that can profoundly influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and adhere to high standards
- Total disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Virginia Beach, VA family
- Manage investments on your behalf by employing their expertise to craft and manage a diversified portfolio that aligns 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 create a personalized approach
- Consistent monitoring and guidance to ensure your financial strategies and investments continue to be in line and that you can adjust to any surprises the market or life presents your way
- Minimized risk with wise and accountable investment choices taken by thoroughly assessing the risk tied to each investment and shaping 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 evolve over time, and life conditions alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic financial planning services are created to offer you with a holistic approach to achieving your financial goals. Our team of fiduciary financial advisors in St. Louis operates diligently to understand your unique financial situation and tailor strategies that suit your life aspirations.
Customized Financial Roadmap
We begin by performing a comprehensive analysis of your current 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.
Financial Portfolio Management
We create 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 Planning
Planning for retirement is a foundation 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 securely and with confidence.
Tax Planning
Effective tax planning helps keep your hard-earned money with yourself and your family. Our advisors are expert in tax laws and strategies that can lower your tax liability and improve your overall financial health.
Estate Planning
We also offer informed guidance on estate planning to help you preserving your legacy. From wills and trusts to estate tax strategies, we make certain your assets are allocated according to your wishes while reducing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a once-off event but a constant process. We offer ongoing monitoring and periodic reviews to adjust your financial plan to any changes in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is profoundly 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 Virginia Beach, VA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Virginia Beach, VA Fiduciary Financial Advisor
Selecting a financial advisor in Virginia Beach, VA with a fiduciary duty is crucial to ensure 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 Virginia Beach, VA residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications needed 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.
Contact us today at 314-930-401(k) or contact us through our website to arrange an appointment and discover how we can help you achieve your financial goals in Virginia Beach, VA.