Fiduciary financial advisor in Arnold, MO. For Arnold, MO residents who lack the time, knowledge, or inclination to handle their assets and retirement accounts themselves, working with a financial advisor provides peace of mind. Trust is crucial in that relationship, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a safe financial future for your family, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Arnold, 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 Arnold, MO fiduciary financial advisors will never propose a product, investment, or approach that we don't genuinely trust in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest at heart, call Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a position of confidence and responsibility when managing assets, finances, or legal affairs for someone else. Fiduciaries are legally and ethically committed to work 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.
Typical examples of fiduciaries include:
- Trustees — Individuals or organizations charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People designated to oversee the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an obligation 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 — People designated by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when managing their cases.
- Real estate agents — Specialists who assist clients in purchasing, 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 important elements 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 truthfully, with genuine intention, and without any intention 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 beneficiary, which means they must prioritize the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might compromise their ability to act solely in the client's best interests. Any conflicts of interest need to be disclosed to the client 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 level of care, skill, and diligence that a wise person would apply in comparable circumstances. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client. This duty ensures that they strive to safeguard and grow the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Arnold, MO?
Financial advisors help Arnold, MO individuals, families, and business owners realize their life goals through a variety of financial services and recommendations. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Arnold, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Arnold, MO Fiduciaries?
Not all financial advisor in Arnold, MO is fiduciaries. The main reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which demands 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 influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation open and limiting conflicts of interest. Other advisors typically receive commissions or other forms 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, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor go for investments that a prudent 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 eventually unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences 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
Benefits of Working with a Fiduciary Financial Advisor in Arnold, MO
Opting to collaborate with a fiduciary financial advisor in Arnold, MO offers an array of advantages that can deeply affect your monetary health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Total disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Arnold, MO family
- Manage investments on your behalf by leveraging their expertise to create and handle a diversified portfolio that matches your goals and strategies
- Thorough financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a custom approach
- Continuous monitoring and direction to ensure your financial strategies and investments stay aligned and that you can adapt to any curveballs the market or life presents your way
- Diminished risk with sensible and responsible investment choices taken by thoroughly assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life conditions change
Hire Correct Capital as Your Arnold, MO Fiduciary Financial Advisor
Choosing a financial advisor in Arnold, MO with a fiduciary standard is crucial to guarantee your long-term interests stay 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 Arnold, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to assist 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 today at 877-930-4015 or contact us through our website to schedule an appointment and learn more about how we can assist you achieve your financial goals in Arnold, MO.
