Fiduciary financial advisor in Chesterfield, MO. For those in Chesterfield, MO who don't have the free time, knowledge, or interest to manage their investments and retirement accounts on their own, working with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Chesterfield, MO, you'll gain a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Chesterfield, MO fiduciary financial advisors will never propose a solution, investment, or plan that we do not sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital now at 877-930-4015, contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a position of trust and duty when overseeing assets, finances, or legal affairs for someone else. Fiduciaries are legally and ethically committed to act in the best interests of the individual or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or institutions charged with managing and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People designated to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an duty to prioritize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People 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 obligated by a fiduciary duty to act in the best interests of their clients when handling legal matters.
- Real estate agents — Experts who aid clients in purchasing, 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any intention to mislead or harm the interests of their beneficiaries. They must continually act honestly 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 over their own. They should eschew any conflicts of interest that might impair their capacity to act exclusively in the client's best interests. Every conflicts of interest must be revealed 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 level of care, skill, and diligence that a prudent person would employ in the same or similar situations. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty ensures that they strive to protect and increase 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 via a range of financial services and proposals. These services comprise investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Chesterfield, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Chesterfield, MO Fiduciaries?
Not all financial advisor in Chesterfield, MO is fiduciaries. The key reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires recommendations to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation tied to product sales, which means they might 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 can't predict the future or know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later 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:
- Overall 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 possess
- 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 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 affect your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to professional standards
- Complete disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Chesterfield, MO family
- Manage investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a tailored approach
- Ongoing monitoring and advice to ensure your financial strategies and investments continue to be in line and that you can adapt to any curveballs the market or life gives your way
- Minimized risk with prudent and judicious investment choices made by thoroughly assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life situations modify
Choose Correct Capital as Your Chesterfield, MO Fiduciary Financial Advisor
Selecting a financial advisor in Chesterfield, MO with a fiduciary duty is vital to guarantee 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 place at the forefront the financial success and peace of mind of Chesterfield, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed 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 discover how we can aid you attain your financial goals in Chesterfield, MO.
