Fiduciary financial advisor in Country Life Acres, MO. For Country Life Acres, MO residents who lack the time, skill, or interest to manage their investments and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Country Life Acres, MO, you'll have a confidante 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 propose a product, investment, or plan that we don't genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, call Correct Capital now at 314-930-401(k), fill out our online form, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a position of trust and duty when managing assets, finances, or legal matters on behalf of another. Fiduciaries are legally and ethically obliged to work 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 include:
- Trustees — People or organizations responsible for handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Individuals 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 underage individuals or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals 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 aid 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required 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 continually 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/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They must steer clear of any conflicts of interest that might impair their capacity to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be made known to the client or beneficiary and the advisor must 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 judicious person would employ in like circumstances. They must make well-informed and thoughtful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they strive to shield and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Country Life Acres, MO?
Financial advisors help Country Life Acres, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and more.
Any individual in Country Life Acres, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate continuous education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Country Life Acres, MO Fiduciaries?
Not all financial advisor in Country Life Acres, MO are fiduciaries. The primary reason is that financial advisors can work under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which mandates strategies to be suitable for clients but does not mandate 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 percentage fee for their services, making their compensation transparent and reducing conflicts of interest. Other advisors typically receive commissions or other forms of compensation linked to product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors need 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 determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase based on 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 eventually unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected return 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 Country Life Acres, MO
Opting to collaborate with a fiduciary financial advisor in Country Life Acres, MO provides an array of advantages that can deeply impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Full disclosure of essential materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your Country Life Acres, MO family
- Manage investments on your behalf utilizing their expertise to craft and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to establish a personalized approach
- Consistent monitoring and advice to ensure your financial plans and investments stay aligned and that you can adjust to any unexpected situations the market or life throws your way
- Diminished risk with sensible and accountable investment choices done by meticulously assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions modify
Hire Correct Capital as Your Country Life Acres, MO Fiduciary Financial Advisor
Selecting a financial advisor in Country Life Acres, MO with a fiduciary standard is vital 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 Country Life Acres, 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 assist 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.
Get in touch with us today at 314-930-401(k) or contact us through our website to schedule an appointment and find out more about how we can help you attain your financial goals in Country Life Acres, MO.