Fiduciary financial advisor in Clarkson Valley, MO. For Clarkson Valley, MO residents who don't have the time, knowledge, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to manage your wealth, or ensuring a safe financial future for your family, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Clarkson Valley, MO, you'll gain a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Clarkson Valley, MO fiduciary financial advisors will never suggest a solution, investment, or strategy that we don't genuinely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, call Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a person or organization that occupies a role of confidence and responsibility when handling assets, monetary matters, or legal concerns for another. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity they are representing, 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 include:
- Trustees — People or institutions charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to manage 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 emphasize 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 — People chosen by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals who aid 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 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 truthfully, with genuine intention, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must continually act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must put first the beneficiary's interests ahead of their own. They must eschew any conflicts of interest that could impair their capability to act only in the beneficiary's best interests. Every conflicts of interest must be made known to the client and the advisor has to still act with the 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 judicious person would apply in the same or similar situations. They must make informed and careful decisions when handling assets or deciding on behalf of their client. This duty ensures that they strive to protect and grow the assets under 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 include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Clarkson Valley, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications necessitate persistent education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to comply with 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 are fiduciaries. The key reason is that financial advisors can work under various regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which mandates strategies to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually 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 associated with product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, commonly 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 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 subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own unique 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 strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Clarkson Valley, MO
Deciding to work with a fiduciary financial advisor in Clarkson Valley, MO provides an array of benefits that can deeply impact your financial health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Full disclosure of pertinent materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Clarkson Valley, MO family
- Manage investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
- Consistent monitoring and direction to guarantee your financial plans and investments stay aligned and that you can adapt to any surprises the market or life presents your way
- Minimized risk with prudent and judicious investment choices taken by thoroughly assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being looked after by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios alter
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 remain protected. 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 Clarkson Valley, MO residents and business owners alike. Our team is comprised of 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 provide 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 through our website to schedule an appointment and find out more about how we can assist you reach your financial goals in Clarkson Valley, MO.
