Fiduciary financial advisor in Clarkson Valley, MO. For Clarkson Valley, MO residents who don't have the free time, expertise, or interest to handle their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that relationship, and whether you're planning for retirement, looking to manage your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Clarkson Valley, MO, you'll gain a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Clarkson Valley, MO fiduciary financial advisors will never recommend a product, investment, or approach that we do not truly have faith in ourselves. For financial advisors that adhere to 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 an appointment 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 person or organization that occupies a position of confidence and responsibility when overseeing assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically bound to operate in the best interests of the person or organization they are serving, often known 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 entities tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to put first the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals designated by the court to make decisions on behalf of underage individuals or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to act in the best interests of their clients when dealing with their cases.
- Real estate agents — Professionals who aid 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 important facets 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 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/beneficiary, which means they must put first the beneficiary's interests over their own. They should steer clear of any conflicts of interest that might impair their ability to act only in the client's best interests. All conflicts of interest must be made known to the client and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a prudent person would employ in comparable circumstances. They must make well-informed and considered decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they strive to protect and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Clarkson Valley, MO?
Financial advisors help Clarkson Valley, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Clarkson Valley, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping 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 Clarkson Valley, MO Fiduciaries?
Not all financial advisor in Clarkson Valley, MO is fiduciaries. The primary reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which mandates 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 percentage fee for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation tied to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
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 cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase considering an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional 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 Clarkson Valley, MO
Choosing to partner with a fiduciary financial advisor in Clarkson Valley, MO offers an array of advantages that can profoundly impact your monetary health:
- Fiduciary financial advisers must act in your best interest and maintain professional standards
- Full disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Clarkson Valley, MO family
- Make investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a personalized approach
- Ongoing monitoring and advice to guarantee your financial tactics and investments continue to be in line and that you can modify to any surprises the market or life presents your way
- Diminished risk with prudent and responsible investment choices made by thoroughly assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations modify
Choose Correct Capital as Your Clarkson Valley, MO Fiduciary Financial Advisor
Choosing a financial advisor in Clarkson Valley, MO with a fiduciary duty is vital to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Clarkson Valley, MO individuals 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 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 schedule an appointment and learn more about how we can aid you attain your financial goals in Clarkson Valley, MO.
