Fiduciary financial advisor in Ballwin, MO. For those in Ballwin, MO who lack the time, skill, or interest to handle their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Ballwin, MO, you'll have a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Ballwin, MO fiduciary financial advisors won't ever propose a product, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that follow 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.
About Fiduciaries
A fiduciary is a individual or entity that maintains a position of confidence and duty when managing assets, finances, or legal matters for another. Fiduciaries are legally and ethically obliged to act 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 referred to as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or entities charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who give financial advice and oversee investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to act in the best interests of their clients when managing their cases.
- Real estate agents — Experts who help 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or harm the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests ahead of their own. They should steer clear of any conflicts of interest that might jeopardize their capability to act solely in the beneficiary's best interests. Any conflicts of interest need to be made known to the client and the advisor has to 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 prudent person would apply in similar circumstances. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client. This duty ensures that they strive to shield and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Ballwin, MO?
Financial advisors help Ballwin, MO individuals, families, and business owners realize their life goals by means of a variety of financial services and proposals. These services comprise investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Ballwin, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate ongoing education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must follow 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 Ballwin, MO Fiduciaries?
Not all financial advisor in Ballwin, MO are fiduciaries. The main reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight relying on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which mandates strategies to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation open and limiting conflicts of interest. Other advisors generally 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 need to abide by the Prudent-Person Rule, commonly 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 has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- Your needs for liquidity, 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Ballwin, MO
Opting to collaborate with a fiduciary financial advisor in Ballwin, MO offers an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Complete disclosure of essential materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Ballwin, MO family
- Make investments on your behalf by employing their expertise to create and oversee a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments continue to be in line and that you can adjust to any unexpected situations the market or life throws your way
- Diminished risk with wise and accountable investment choices done by meticulously assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios modify
Hire Correct Capital as Your Ballwin, MO Fiduciary Financial Advisor
Choosing a financial advisor in Ballwin, MO with a fiduciary standard is crucial to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Ballwin, MO residents and business owners alike. 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.
Reach out to us now at 877-930-4015 or contact us through our website to arrange an appointment and learn more about how we can aid you reach your financial goals in Ballwin, MO.
