Fiduciary financial advisor in Central West End, MO. For Central West End, MO residents who lack the free time, skill, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, seeking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Central West End, 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 Central West End, MO fiduciary financial advisors won't ever propose a solution, investment, or strategy that we don't truly 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 314-930-401(k), fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or organization that holds a role of trust and responsibility when handling assets, finances, or legal affairs for another. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity 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.
Typical examples of fiduciaries include:
- Trustees — People or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to prioritize the client's financial well-being.
- Corporate directors — Representatives 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 underage individuals or persons who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals who assist 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 aspects 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 honestly, with sincerity, and without any intention to deceive or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, 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 client's best interests. All conflicts of interest must be made known 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 employ the degree of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make well-informed and thoughtful decisions when overseeing assets or making decisions on behalf of their client. This duty guarantees that they do their best to protect and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Central West End, MO?
Financial advisors help Central West End, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any individual in Central West End, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications require ongoing education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Central West End, MO Fiduciaries?
Not all financial advisor in Central West End, MO are fiduciaries. The key reason is that financial advisors can work under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires strategies to be fitting 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 proportional charge for their services, making their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors generally 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 are required 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 mandates that a fiduciary financial advisor go for investments that a reasonable person would purchase from an acceptable risk considering 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 can apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- Your needs for readily available funds, 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Central West End, MO
Opting to collaborate with a fiduciary financial advisor in Central West End, MO provides an array of advantages that can profoundly influence your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
- Total disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Central West End, MO family
- Handle investments on your behalf by employing their expertise to create and oversee a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to devise a tailored approach
- Continuous monitoring and advice to guarantee your financial strategies and investments remain on track and that you can modify to any unexpected situations the market or life gives your way
- Minimized risk with prudent and responsible investment choices taken by meticulously assessing the risk tied to each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by skilled financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life conditions change
Choose Correct Capital as Your Central West End, MO Fiduciary Financial Advisor
Selecting a financial advisor in Central West End, MO with a fiduciary duty is essential to guarantee 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 place at the forefront the financial success and peace of mind of Central West End, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications essential to guide 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.