Fiduciary financial advisor in Brentwood, MO. For those in Brentwood, MO who don't have the time, expertise, or inclination to handle their investments and retirement accounts themselves, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to increase your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Brentwood, MO, you'll gain a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Brentwood, MO fiduciary financial advisors won't ever suggest a product, investment, or plan that we do not genuinely believe in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a individual or organization that maintains a position of trust and duty when handling assets, finances, or legal concerns for another person. Fiduciaries are legally and ethically obliged to work in the best interests of the person or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or institutions responsible for handling and monitoring assets held in a trust for the advantage 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 emphasize 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 — Individuals appointed by the court to make decisions on behalf of people under 18 or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Specialists who help clients in purchasing, 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any intention to deceive or damage the interests of their beneficiaries. They must consistently 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 should avoid any conflicts of interest that might jeopardize their capacity to act only in the beneficiary's best interests. Every conflicts of interest must be disclosed to the client or beneficiary 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 apply the standard of care, skill, and diligence that a wise person would apply in the same or similar situations. They must make informed and thoughtful decisions when handling assets or making decisions on behalf of their client. This duty ensures that they strive to safeguard and expand the assets under 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 array of financial services and proposals. These services include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Brentwood, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications require continuous education and a stringent moral standard.
For instance, 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 Brentwood, MO Fiduciaries?
Not all financial advisor in Brentwood, MO is 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 frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which requires advice to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation tied to product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor purchase investments that a sensible 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 may apply their own unique 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 part that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you have
- 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Brentwood, MO
Opting to collaborate with a fiduciary financial advisor in Brentwood, MO brings to the table an array of advantages that can significantly affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Full disclosure of relevant materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Brentwood, MO family
- Make investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to create a tailored approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can modify to any curveballs the market or life presents your way
- Diminished 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
- Assurance that your best interests are being cared for by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life conditions change
Choose Correct Capital as Your Brentwood, MO Fiduciary Financial Advisor
Choosing a financial advisor in Brentwood, MO with a fiduciary standard is vital to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Brentwood, MO individuals 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 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.
Get in touch with us today at 877-930-4015 or contact us through our website to arrange an appointment and discover how we can aid you reach your financial goals in Brentwood, MO.
