Fiduciary financial advisor in Concord, MO. For Concord, MO residents who don't have the time, knowledge, or interest to handle their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're planning for retirement, looking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Concord, MO, you'll have a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Concord, MO fiduciary financial advisors will never propose a solution, investment, or approach that we don't sincerely trust in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
Understanding Fiduciaries
A fiduciary is a person or entity that maintains a role of confidence and duty when handling assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically bound to work 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.
Common examples of fiduciaries include:
- Trustees — People or entities charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to oversee the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are entrusted with the responsibility of 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 unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when handling legal matters.
- Real estate agents — Professionals who help clients in buying, 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 vital aspects 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 with integrity, with sincerity, and without any intention to mislead or damage 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 prioritize the beneficiary's interests over their own. They ought to eschew any conflicts of interest that might compromise their capacity to act solely in the beneficiary's best interests. Every conflicts of interest need to be disclosed to the client and the advisor has to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a wise person would employ in the same or similar situations. They must make well-informed and thoughtful decisions when handling assets or deciding on behalf of their client. This duty guarantees that they work diligently to safeguard and expand the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Concord, MO?
Financial advisors help Concord, MO individuals, families, and business owners attain their life goals through a range of financial services and recommendations. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and others.
Any person in Concord, MO can call themselves a "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 necessitate continuous education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Concord, MO Fiduciaries?
Not all financial advisor in Concord, MO are fiduciaries. The key reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands advice to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds 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 ahead of time, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase from an acceptable risk based on 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
- 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 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 Concord, MO
Opting to collaborate with a fiduciary financial advisor in Concord, MO offers an array of benefits that can profoundly influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Total disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Concord, MO family
- Manage investments on your behalf utilizing their expertise to create and handle a diversified portfolio that matches your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a personalized approach
- Continuous monitoring and advice to ensure your financial strategies and investments continue to be in line and that you can modify to any curveballs the market or life gives your way
- Minimized risk with wise and responsible investment choices taken by carefully assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals change over time, and life conditions alter
Choose Correct Capital as Your Concord, MO Fiduciary Financial Advisor
Choosing a financial advisor in Concord, MO with a fiduciary duty is crucial to ensure 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 Concord, 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 expertise and qualifications needed 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 today at 877-930-4015 or contact us through our website to set up an appointment and learn more about how we can aid you achieve your financial goals in Concord, MO.
