Fiduciary financial advisor in Crestwood, MO. For those in Crestwood, MO who lack the free 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, looking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Crestwood, MO, you'll have a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Crestwood, MO fiduciary financial advisors will never propose a product, investment, or strategy that we don't sincerely trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest as their top priority, call Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a person or entity that occupies a role of trust and duty when managing assets, monetary matters, or legal affairs for someone else. Fiduciaries are legally and ethically obliged to act in the best interests of the person or entity they are representing, 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 — Individuals appointed to handle 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 obligation 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 — People chosen by the court to make decisions on behalf of minors or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Professionals who aid clients in purchasing, 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any aim to deceive or damage the interests of their beneficiaries. They must always 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 client/beneficiary, which means they must put first the beneficiary's interests above their own. They should eschew any conflicts of interest that could compromise their capacity to act only in the client's best interests. All conflicts of interest need to be revealed to the client or beneficiary and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a wise person would employ in the same or similar situations. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they work diligently to safeguard and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Crestwood, MO?
Financial advisors help Crestwood, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Crestwood, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications necessitate persistent education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 main reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors generally 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 are required to abide by the Prudent-Person Rule, also 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 stipulates that a fiduciary financial advisor select investments that a sensible person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own particular laws. Missouri law, for example, stipulates 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 return and appreciation of capital
- Other assets and resources you own
- Your needs for readily available funds, 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Crestwood, MO
Opting to collaborate with a fiduciary financial advisor in Crestwood, MO offers an array of benefits that can profoundly affect your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Complete disclosure of essential materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Crestwood, MO family
- Handle investments on your behalf utilizing their expertise to create and manage a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a tailored approach
- Continuous monitoring and guidance to ensure your financial tactics and investments stay aligned and that you can modify to any surprises the market or life throws your way
- Diminished risk with prudent and responsible investment choices done by thoroughly assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life situations change
Choose Correct Capital as Your Crestwood, MO Fiduciary Financial Advisor
Choosing a financial advisor in Crestwood, 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 pleased to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Crestwood, MO residents 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 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.
Contact us today at 877-930-4015 or contact us online to schedule an appointment and learn more about how we can assist you reach your financial goals in Crestwood, MO.
