Fiduciary financial advisor in St. Louis County, MO. For those in St. Louis County, MO who don't have the free time, skill, or inclination to handle their investments and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that relationship, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in St. Louis County, MO, you'll gain a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis County, MO fiduciary financial advisors will never propose a product, investment, or strategy that we do not truly believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, reach out to Correct Capital now at 877-930-4015, contact us through our wesbite, or schedule an appointment with a member of our advisor team.
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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 organization that occupies a role of trust and responsibility when overseeing assets, finances, or legal concerns on behalf of another. Fiduciaries are legally and ethically obliged to work in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or institutions tasked with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an duty to prioritize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of people under 18 or people who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to act in the best interests of their clients when managing legal matters.
- Real estate agents — Professionals who aid 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 crucial elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must continually 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 client/beneficiary, which means they must prioritize the beneficiary's interests over their own. They ought to eschew any conflicts of interest that could compromise their capability to act only in the beneficiary's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor has to still act with the 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 wise person would apply in the same or similar situations. They must make well-informed and careful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to protect and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in St. Louis County, MO?
Financial advisors help St. Louis County, MO individuals, families, and business owners attain their life goals by means of a variety of financial services and proposals. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Anyone in St. Louis County, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications demand persistent education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 St. Louis County, MO Fiduciaries?
Not all financial advisor in St. Louis County, MO are fiduciaries. The key reason is that financial advisors can function under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates strategies to be fitting for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation clear and limiting conflicts of interest. Other 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 must 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 ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- Your needs for liquidity, 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
Benefits of Working with a Fiduciary Financial Advisor in St. Louis County, MO
Choosing to partner with a fiduciary financial advisor in St. Louis County, MO offers an array of advantages that can significantly impact your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
- Full disclosure of essential materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your St. Louis County, MO family
- Manage investments on your behalf by employing their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
- Continuous monitoring and direction to guarantee your financial tactics and investments stay aligned and that you can adapt to any surprises the market or life throws your way
- Reduced risk with wise and judicious investment choices taken by thoroughly assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being cared for by knowledgeable financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations alter
Hire Correct Capital as Your St. Louis County, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Louis County, MO with a fiduciary standard is vital to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of St. Louis County, MO 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 needed to assist 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 now at 877-930-4015 or contact us online to arrange an appointment and discover how we can assist you achieve your financial goals in St. Louis County, MO.
