Fiduciary financial advisor in Cottleville, MO. For those in Cottleville, MO who don't have the time, expertise, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're preparing for retirement, seeking to grow your wealth, or ensuring a secure 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 is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Cottleville, MO fiduciary financial advisors won't ever recommend a solution, investment, or plan that we don't sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Understanding Fiduciaries
A fiduciary is a individual or entity that holds a position of trust and responsibility when handling assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically committed to work 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 referred to as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or entities tasked with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen 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 manage investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of minors or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Experts 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 vital elements 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 genuine intention, and without any intention to deceive or damage the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests ahead of their own. They should eschew any conflicts of interest that might jeopardize their capability to act solely in the beneficiary's best interests. Any conflicts of interest must be revealed to the client or beneficiary and the advisor needs to 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 wise person would employ in the same or similar situations. They must make informed and considered decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to protect and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Cottleville, MO?
Financial advisors help Cottleville, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Cottleville, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications require continuous education and a rigorous moral standard.
For instance, 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 Cottleville, MO Fiduciaries?
Not all financial advisor in Cottleville, MO is fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires recommendations to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation linked to product sales, which means they may 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 ahead of time, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Potential 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 readily available funds, income, and preservation of capital
- An asset's unique 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 Cottleville, MO
Deciding to work with a fiduciary financial advisor in Cottleville, MO provides an array of benefits that can deeply influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Complete disclosure of essential materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Cottleville, MO family
- Handle investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Continuous monitoring and advice to guarantee your financial tactics and investments stay aligned and that you can adapt to any curveballs the market or life presents your way
- Reduced risk with sensible and judicious investment choices done 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 experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life situations change
Hire Correct Capital as Your Cottleville, MO Fiduciary Financial Advisor
Selecting a financial advisor in Cottleville, MO with a fiduciary standard 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 place at the forefront the financial success and peace of mind of Cottleville, MO individuals and business owners equally. Our team includes 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.
Get in touch with us now at 877-930-4015 or contact us through our website to schedule an appointment and discover how we can aid you attain your financial goals in Cottleville, MO.
