Fiduciary financial advisor in Wichita, KS. For Wichita, KS residents who lack 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 paramount 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 working with a fiduciary financial advisor in Wichita, KS, you'll gain a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Wichita, KS fiduciary financial advisors will never recommend a solution, investment, or approach that we do not genuinely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital now at 314-930-401(k), fill out our online form, or schedule a meeting with on of our advisors.
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Understanding Fiduciaries
A fiduciary is a individual or organization that maintains a role of trust and responsibility when handling assets, monetary matters, or legal concerns for someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the individual or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions responsible for managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of underage individuals or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to work in the best interests of their clients when managing their cases.
- Real estate agents — Specialists who help 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 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 with integrity, with sincerity, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must continually act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests over their own. They must eschew any conflicts of interest that could compromise their capability to act solely in the client's best interests. Any conflicts of interest must be made known to the client and the advisor needs to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make informed and careful 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 within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Wichita, KS?
Financial advisors help Wichita, KS individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment recommendations, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Wichita, KS can give themselves the title of "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 have to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications demand continuous education and a rigorous moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to adhere to 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 Wichita, KS Fiduciaries?
Not all financial advisor in Wichita, KS is fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands strategies to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and reducing conflicts of interest. Other advisors usually receive commissions or other forms 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 are required to abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- 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 estimated 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 merely required to suggest investment products 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
- Legal Responsibility: Fiduciary financial advisors are lawfully and ethically obligated 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, guarantee transparency, and provide the highest level of care in their advice and actions.
- Oversight: 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
- Suitability: Financial 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 consider their own interests as long as the suggestions are appropriate.
- Potential 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 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 operate 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 handling a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Mandates financial advisors to act in the client's most favorable financial interest. | Demands financial advisors to suggest appropriate products or plans based on available information. |
| Standard of Care | Superior level of care ensuring every action matches with the client's most favorable outcome. | Guarantees suggestions are proper and make sense for the client's circumstances. |
| Client-Centric Approach | Financial advisors prioritize client's goals, needs, and preferences above their own. | Financial advisors base suggestions on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Complete disclosure of potential conflicts of interest is necessary. | Less stringent disclosure requirements, provided the recommendation is appropriate. |
| Due Diligence | Recommendations based on a comprehensive evaluation of the client's financial situation. | Suggestions based on reasonable research and analysis. |
| Ongoing Duty | Ongoing duty to act in the client's best interest, requiring regular reviews and updates. | Emphasizes the appropriateness of advice at the time of the recommendation, with minimal focus on ongoing oversight. |
| Conflict of Interest | Must disclose and manage conflicts openly, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the recommendation remains suitable. |
| Long-Term Commitment | Advisors have a ongoing obligation to oversee and adjust 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 Wichita, KS
Choosing to partner with a fiduciary financial advisor in Wichita, KS offers an array of advantages that can profoundly affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and maintain professional standards
- Full disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Wichita, KS family
- Manage investments on your behalf by employing their expertise to develop and manage a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to create a custom approach
- Continuous monitoring and advice 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 responsible investment choices taken by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by skilled financial advisors
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life situations change
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 meeting your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to understand your unique financial situation and adapt strategies that match your life aspirations.
Personalized Financial Roadmap
We begin by undertaking a thorough analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that caters to 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 match your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.
Retirement Strategy
Planning for retirement is a cornerstone 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 comfortably and securely.
Tax Planning
Effective tax planning ensures more of your hard-earned money in your pocket and your family. Our advisors are expert in tax laws and strategies that can lower your tax liability and boost your overall financial health.
Estate Planning
We also offer educated guidance on estate planning to help you protecting your legacy. From wills and trusts to estate tax strategies, we guarantee your assets are allocated according to your wishes while reducing tax burdens.
Continuous Oversight
Financial planning is not a once-off event but a continuous process. We offer ongoing monitoring and regular reviews to adapt your financial plan to any shifts in your life circumstances or economic environment.
Client-Centric Approach
At Correct Capital, our approach is highly client-centric. We pride ourselves on building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our primary priority, and we are dedicated to helping you reach your financial goals with integrity and excellence.
Other services we offer in Wichita, KS include:
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Hire Correct Capital as Your Wichita, KS Fiduciary Financial Advisor
Selecting a financial advisor in Wichita, KS with a fiduciary standard is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Wichita, KS individuals 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 provide all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Contact us now at 314-930-401(k) or contact us online to arrange an appointment and learn more about how we can help you attain your financial goals in Wichita, KS.
