Fiduciary financial advisor in Cottleville, MO. For Cottleville, MO residents who lack the time, skill, or interest to handle their assets 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 increase your wealth, or ensuring a safe 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 Cottleville, MO, you'll gain a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Cottleville, MO fiduciary financial advisors will never suggest a solution, investment, or approach that we don't truly trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule a meeting with on of our advisors.
A fiduciary is a individual or organization that maintains a position of confidence and duty when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or organizations charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed 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 responsibility to put first the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or people who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
- Real estate agents — Specialists who help 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with sincerity, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must continually act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that might impair their ability to act solely in the client's best interests. Any conflicts of interest need to be revealed to the client or beneficiary 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 apply the degree of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make informed and considered decisions when managing assets or deciding on behalf of their client. This duty ensures that they do their best to protect and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Cottleville, MO?
Financial advisors help Cottleville, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Cottleville, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require persistent education and a rigorous 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 Cottleville, MO Fiduciaries?
Not all financial advisor in Cottleville, MO is fiduciaries. The primary reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands investments to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence 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 generally receive commissions or other forms of compensation tied to 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 determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you possess
- Your needs for liquidity, 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 Cottleville, MO
Deciding to work with a fiduciary financial advisor in Cottleville, MO offers an array of benefits that can deeply influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain ethical standards
- Full disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Cottleville, MO family
- Handle investments on your behalf by employing their expertise to create 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 direction to guarantee your financial tactics and investments continue to be in line and that you can modify to any surprises the market or life throws your way
- Minimized risk with sensible and judicious investment choices done by carefully assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being cared for by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios alter
Hire Correct Capital as Your Cottleville, MO Fiduciary Financial Advisor
Selecting a financial advisor in Cottleville, MO with a fiduciary duty is crucial to ensure 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 prioritize the financial success and peace of mind of Cottleville, 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 necessary 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.