Fiduciary financial advisor in Chesterfield, MO. For Chesterfield, MO residents who don't have the free time, skill, or interest to handle their investments and retirement accounts on their own, working with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Chesterfield, MO, you'll gain a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Chesterfield, MO fiduciary financial advisors will never suggest a solution, investment, or approach that we don't genuinely have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital now at 877-930-4015, contact us through our wesbite, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or organization that occupies a role of confidence and duty when handling assets, finances, or legal affairs for another. Fiduciaries are legally and ethically committed to operate in the best interests of the person or organization they are representing, 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 include:
- Trustees — Individuals or organizations charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Members 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 individuals who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Specialists 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 important 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 honestly, with sincerity, and without any intention to deceive or infringe upon the interests of their beneficiaries. They must always 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 beneficiary, which means they must put first the beneficiary's interests above their own. They should eschew any conflicts of interest that could jeopardize their ability to act solely in the beneficiary's best interests. All conflicts of interest need to be disclosed 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 employ the degree of care, skill, and diligence that a wise person would employ in the same or similar situations. They must make informed and careful decisions when managing assets or deciding on behalf of their client. This duty guarantees that they work diligently to safeguard and grow the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Chesterfield, MO?
Financial advisors help Chesterfield, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any person in Chesterfield, MO can give themselves the title of "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 necessitate persistent education and a rigorous moral standard.
As an example, 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 Chesterfield, MO Fiduciaries?
Not all financial advisor in Chesterfield, MO is fiduciaries. The key reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which mandates advice to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation associated with product sales, which means they could 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from 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 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 approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- 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 Chesterfield, MO
Opting to collaborate with a fiduciary financial advisor in Chesterfield, MO provides an array of advantages that can significantly impact your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Complete disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Chesterfield, MO family
- Manage investments on your behalf by leveraging their expertise to create and handle a diversified portfolio that resonates with your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Continuous monitoring and guidance to guarantee your financial tactics and investments stay aligned and that you can modify to any surprises the market or life gives your way
- Diminished risk with wise and accountable investment choices made by carefully assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being looked after by skilled financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations modify
Hire Correct Capital as Your Chesterfield, MO Fiduciary Financial Advisor
Choosing a financial advisor in Chesterfield, MO with a fiduciary duty is crucial 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 prioritize the financial success and peace of mind of Chesterfield, 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 necessary to assist 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.
Contact us now at 877-930-4015 or contact us online to arrange an appointment and learn more about how we can assist you reach your financial goals in Chesterfield, MO.
