Fiduciary financial advisor in Brentwood, MO. For those in Brentwood, MO who don't have the free time, skill, or inclination to manage 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 preparing for retirement, seeking to manage your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Brentwood, MO, you'll have a confidante who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Brentwood, MO fiduciary financial advisors will never recommend a solution, investment, or strategy that we don't truly trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest as their top priority, call Correct Capital today at 877-930-4015, contact us online, or schedule an appointment with on of our advisors.
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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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What Is a Fiduciary?
A fiduciary is a person or organization that holds a position of confidence and duty when handling assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically committed 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 called the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — Individuals or entities charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to oversee the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People appointed 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 act in the best interests of their clients when handling their cases.
- Real estate agents — Professionals who aid 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with sincerity, and without any aim to deceive or harm 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, which means they must prioritize the beneficiary's interests ahead of their own. They ought to eschew any conflicts of interest that might jeopardize their ability to act solely in the beneficiary's best interests. All conflicts of interest must be disclosed to the client 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 judicious person would use in similar circumstances. They must make well-informed and careful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty confirms that they do their best to safeguard and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Brentwood, MO?
Financial advisors help Brentwood, MO individuals, families, and business owners attain their life goals through a variety of financial services and recommendations. These services comprise investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Brentwood, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications require ongoing education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Brentwood, MO Fiduciaries?
Not all financial advisor in Brentwood, MO are fiduciaries. The primary reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires investments to be appropriate for clients but doesn't require the same duties of loyalty and care.
- 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 clear and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds of compensation tied 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 need 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 ahead of time, but stipulates that a fiduciary financial advisor go for investments that a reasonable person would purchase considering an acceptable risk in light of 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 might 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 consequences of investments
- The part 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 special 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 Brentwood, MO
Choosing to partner with a fiduciary financial advisor in Brentwood, MO offers an array of benefits that can profoundly impact your fiscal health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Total disclosure of essential materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Brentwood, MO family
- Handle investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to create a personalized approach
- Ongoing monitoring and guidance to guarantee your financial plans and investments continue to be in line and that you can adapt to any unexpected situations the market or life presents your way
- Minimized risk with wise and judicious investment choices done by thoroughly assessing the risk associated with each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios modify
Hire Correct Capital as Your Brentwood, MO Fiduciary Financial Advisor
Selecting a financial advisor in Brentwood, 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 proud to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Brentwood, MO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential 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.
Get in touch with us today at 877-930-4015 or contact us through our website to schedule an appointment and learn more about how we can aid you achieve your financial goals in Brentwood, MO.
