Fiduciary financial advisor in Crestwood, MO. For those in Crestwood, MO who lack the time, skill, or inclination to oversee their investments and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that relationship, and whether you're preparing for retirement, seeking to manage 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 working with a fiduciary financial advisor in Crestwood, 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 Crestwood, MO fiduciary financial advisors will never suggest a solution, investment, or strategy that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest in mind, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
Understanding Fiduciaries
A fiduciary is a person or organization that maintains a position of confidence and responsibility when managing assets, finances, or legal matters for another person. Fiduciaries are legally and ethically committed to act in the best interests of the individual or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — Individuals or entities charged with handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an responsibility to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals appointed by the court to make decisions on behalf of people under 18 or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to act in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals who aid 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 aspects 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 with integrity, with sincerity, and without any intention to deceive or harm the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests over their own. They must eschew any conflicts of interest that could compromise their capacity to act solely in the beneficiary's best interests. Every conflicts of interest need to be made known to the client and the advisor has to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a wise person would use in similar circumstances. They must make informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they work diligently to shield and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Crestwood, MO?
Financial advisors help Crestwood, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Crestwood, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications necessitate continuous education and a rigorous moral standard.
To illustrate, 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 Crestwood, MO Fiduciaries?
Not all financial advisor in Crestwood, MO are fiduciaries. The primary reason is that financial advisors can work under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands advice to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation clear and minimizing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation linked 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 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 know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for 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 eventually 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:
- Overall 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 have
- Your needs for readily available funds, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Crestwood, MO
Deciding to work with a fiduciary financial advisor in Crestwood, MO offers an array of benefits that can significantly impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Complete disclosure of relevant materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Crestwood, MO family
- Make investments on your behalf by employing their expertise to create and oversee a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to devise a tailored approach
- Consistent monitoring and direction to ensure your financial plans and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
- Minimized risk with wise and responsible investment choices done by meticulously assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life scenarios modify
Choose Correct Capital as Your Crestwood, MO Fiduciary Financial Advisor
Choosing a financial advisor in Crestwood, MO with a fiduciary standard is essential to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Crestwood, 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 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.
Contact us now at 877-930-4015 or contact us through our website to set up an appointment and discover how we can assist you reach your financial goals in Crestwood, MO.
