Fiduciary financial advisor in Arnold, MO. For those in Arnold, MO who don't have the free time, knowledge, or inclination to handle their assets 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 ensuring a stable financial future for your family, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Arnold, MO, you'll have a partner who has a legal and ethical obligation 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 do not genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest at heart, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a individual or entity that maintains a role of confidence and duty when overseeing 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 serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to prioritize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of underage individuals 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 legal matters.
- Real estate agents — Specialists who assist clients in buying, 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any design to mislead 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 beneficiary, which means they must prioritize the beneficiary's interests over their own. They must avoid any conflicts of interest that could jeopardize their capability to act exclusively in the client's best interests. All conflicts of interest need to be revealed to the client and the advisor must still act with the 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 wise person would use in like circumstances. They must make well-informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to shield and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Arnold, MO?
Financial advisors help Arnold, MO individuals, families, and business owners achieve their life goals through a array of financial services and recommendations. These services include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Arnold, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications necessitate persistent education and a stringent 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 Arnold, MO Fiduciaries?
Not all financial advisor in Arnold, MO are fiduciaries. The key reason lies in the fact that financial advisors can work under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which requires strategies to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation clear and reducing conflicts of interest. Other advisors typically receive commissions or other forms of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors are required to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor purchase investments that a sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates 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
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- 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 expected 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 benefits that can significantly impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to high standards
- Complete disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Arnold, MO family
- Manage investments on your behalf by leveraging their expertise to craft and oversee a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to devise a tailored approach
- Continuous monitoring and direction to guarantee your financial plans and investments remain on track and that you can adapt to any unexpected situations the market or life throws your way
- Diminished risk with prudent and judicious investment choices taken by thoroughly assessing the risk linked with each investment and modifying your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions modify
Hire Correct Capital as Your Arnold, MO Fiduciary Financial Advisor
Selecting a financial advisor in Arnold, MO with a fiduciary standard is vital 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 hold in high regard the financial success and peace of mind of Arnold, MO residents and business owners alike. 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 assist you on your financial journey. We offer 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 find out more about how we can assist you reach your financial goals in Arnold, MO.
