Fiduciary financial advisor in Clayton, MO. For those in Clayton, MO who don't have the time, expertise, 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 planning for retirement, seeking to manage your wealth, or ensuring a stable 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 Clayton, MO, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Clayton, MO fiduciary financial advisors will never recommend a product, investment, or plan that we don't genuinely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest in mind, reach out to Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that maintains a position of trust and duty when managing assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically obliged 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 include:
- Trustees — Individuals or institutions charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who give financial advice and oversee investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — People designated by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound 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 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 are required to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any intention to mislead or damage the interests of their beneficiaries. They must consistently 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 above their own. They ought to steer clear of any conflicts of interest that might impair their ability to act only in the beneficiary's best interests. All conflicts of interest need to be made known to the client or beneficiary and the advisor must still act with the client/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 use in comparable circumstances. They must make informed and careful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to safeguard and grow the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Clayton, MO?
Financial advisors help Clayton, MO individuals, families, and business owners realize their life goals through a variety of financial services and recommendations. These services comprise investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any person in Clayton, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a rigorous moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Clayton, MO Fiduciaries?
Not all financial advisor in Clayton, MO is fiduciaries. The key reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires advice to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds 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 can't predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you own
- 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Clayton, MO
Deciding to work with a fiduciary financial advisor in Clayton, MO provides an array of advantages that can significantly influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and uphold professional standards
- Total disclosure of relevant materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Clayton, MO family
- Manage investments on your behalf by leveraging their expertise to craft and oversee a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a custom approach
- Ongoing monitoring and guidance to guarantee your financial tactics and investments stay aligned and that you can adapt to any surprises the market or life gives your way
- Diminished risk with sensible and responsible investment choices taken by meticulously assessing the risk linked with each investment and tailoring your portfolio to match your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations modify
Choose Correct Capital as Your Clayton, MO Fiduciary Financial Advisor
Choosing a financial advisor in Clayton, MO with a fiduciary standard is vital to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Clayton, 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 knowledge and qualifications essential to guide 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.
Contact us now at 877-930-4015 or contact us through our website to set up an appointment and learn more about how we can help you attain your financial goals in Clayton, MO.
