Fiduciary financial advisor in Country Life Acres, MO. For those in Country Life Acres, MO who don't have the time, skill, or inclination to manage their investments and retirement accounts themselves, 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, seeking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Country Life Acres, MO, you'll gain a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Country Life Acres, MO fiduciary financial advisors will never suggest a product, investment, or approach that we don't truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate 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 a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a person or organization that maintains a position of trust and responsibility when managing assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically committed to act in the best interests of the person or organization 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 are:
- Trustees — Individuals or organizations responsible for handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to put first the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of minors or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to act in the best interests of their clients when managing their legal affairs.
- Real estate agents — Specialists who assist 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any design to deceive or harm the interests of their beneficiaries. They must always act honestly 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 over their own. They ought to eschew any conflicts of interest that could compromise their capacity to act exclusively in the client's best interests. All conflicts of interest must be revealed to the client or beneficiary and the advisor has to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a wise person would use in comparable circumstances. They must make informed and considered decisions when handling assets or making decisions on behalf of their client. This duty guarantees that they work diligently to protect and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Country Life Acres, MO?
Financial advisors help Country Life Acres, MO individuals, families, and business owners achieve their life goals via a range of financial services and suggestions. These services include investment choices, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in Country Life Acres, 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 keeping these certifications require ongoing education and a strict moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Country Life Acres, MO Fiduciaries?
Not all financial advisor in Country Life Acres, MO are fiduciaries. The primary reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which demands investments to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a prudent person would purchase from an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences 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 liquidity, income, and preservation of capital
- An asset's distinctive relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Country Life Acres, MO
Opting to collaborate with a fiduciary financial advisor in Country Life Acres, MO brings to the table an array of advantages that can deeply affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Full disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Country Life Acres, MO family
- Handle investments on your behalf by employing their expertise to develop and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a tailored approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments stay aligned and that you can adjust to any surprises the market or life throws your way
- Minimized risk with wise and responsible investment choices done by carefully assessing the risk linked with each investment and shaping your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life scenarios change
Hire Correct Capital as Your Country Life Acres, MO Fiduciary Financial Advisor
Choosing a financial advisor in Country Life Acres, MO with a fiduciary duty is essential to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Country Life Acres, 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 skills and qualifications needed to lead 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.
Reach out to us today at 877-930-4015 or contact us online to set up an appointment and discover how we can aid you achieve your financial goals in Country Life Acres, MO.
