Fiduciary financial advisor in Concord, MO. For Concord, MO residents who don't have the time, expertise, or inclination to handle their assets and retirement accounts on their own, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to manage your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing 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 won't ever recommend a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest at heart, reach out to Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that occupies a role of trust and duty when managing assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically bound to operate in the best interests of the individual or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or organizations tasked with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People designated to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation to put first the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or persons who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when managing their cases.
- Real estate agents — Professionals who help 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 crucial elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must consistently 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 put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might compromise their capability to act solely in the client's best interests. All conflicts of interest must be made known to the client 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 prudent person would employ in similar circumstances. They must make well-informed and careful decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they strive to safeguard and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Concord, MO?
Financial advisors help Concord, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services include investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Concord, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate ongoing education and a strict moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Concord, MO Fiduciaries?
Not all financial advisor in Concord, MO are fiduciaries. The main reason is that financial advisors can work under different regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which mandates advice to be suitable for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually 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 are required to abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase considering 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, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional 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 Concord, MO
Deciding to work with a fiduciary financial advisor in Concord, MO provides an array of advantages that can deeply influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Complete disclosure of pertinent materials and facts and complete transparency regarding 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 by leveraging their expertise to craft and handle a diversified portfolio that matches your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a tailored approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
- Minimized risk with prudent and judicious investment choices taken by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being watched over by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios modify
Hire Correct Capital as Your Concord, MO Fiduciary Financial Advisor
Choosing a financial advisor in Concord, MO with a fiduciary standard is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Concord, MO residents 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 needed 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 today at 877-930-4015 or contact us through our website to schedule an appointment and discover how we can assist you attain your financial goals in Concord, MO.
