Fiduciary financial advisor in Central West End, MO. For Central West End, MO residents 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. That relationship is built on trust, and whether you're planning for retirement, looking to increase your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Central West End, MO, you'll gain a confidante who has a legal and ethical responsibility 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 product, investment, or plan that we don't sincerely have faith in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting 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 individual or organization that maintains a position of confidence and responsibility when handling assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically bound to act in the best interests of the person or entity they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — Individuals or organizations responsible for handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an responsibility 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 appointed by the court to make decisions on behalf of minors 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 dealing with 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 crucial elements 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 truthfully, with genuine intention, and without any intention to deceive or damage the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They must steer clear of any conflicts of interest that could jeopardize their ability to act only in the client's best interests. All conflicts of interest need to be disclosed 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 apply the degree of care, skill, and diligence that a judicious person would employ in like circumstances. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client. This duty confirms that they strive to safeguard and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Central West End, MO?
Financial advisors help Central West End, MO individuals, families, and business owners realize their life goals by means of a variety of financial services and proposals. These services consist of investment recommendations, retirement planning, tax planning, estate planning, asset management and others.
Any person in Central West End, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving 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 Central West End, MO Fiduciaries?
Not all financial advisor in Central West End, MO are fiduciaries. The key reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight 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 strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Other advisors generally 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 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 ahead of time, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase from an acceptable risk in light of 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 can apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you own
- 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 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 offers an array of benefits that can significantly affect your financial health:
- Fiduciary financial advisers must act in your best interest and maintain high standards
- Total disclosure of essential materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Central West End, MO family
- Handle investments on your behalf utilizing their expertise to develop and handle a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a personalized approach
- Consistent monitoring and advice to guarantee your financial tactics and investments continue to be in line and that you can adapt to any unexpected situations the market or life throws your way
- Reduced risk with wise and judicious investment choices made by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios alter
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 pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Central West End, 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 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.
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 assist you achieve your financial goals in Central West End, MO.
