Fiduciary financial advisor in Creve Coeur, MO. For Creve Coeur, MO residents who don't have the time, expertise, or interest to manage their assets and retirement accounts themselves, partnering with a financial advisor provides peace of mind. Trust is vital in that partnership, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Creve Coeur, MO, you'll gain a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Creve Coeur, MO fiduciary financial advisors will never suggest a solution, investment, or approach that we do not sincerely trust in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, reach out to Correct Capital today at 877-930-4015, contact us online, or schedule an appointment with a member of our advisor team.
About Fiduciaries
A fiduciary is a person or entity that holds a position of trust and responsibility when handling assets, finances, or legal matters on behalf of another. Fiduciaries are legally and ethically bound to operate 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.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions tasked 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 decedent 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 well-being.
- 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 underage individuals or individuals who are unable 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 dealing with their legal affairs.
- 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any intention to mislead or infringe upon 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 prioritize the beneficiary's interests above their own. They should steer clear of any conflicts of interest that might compromise their capability to act solely in the beneficiary's best interests. All conflicts of interest must be disclosed to the client or beneficiary and the advisor needs to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the degree of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make informed and thoughtful decisions when overseeing assets or deciding on behalf of their client. This duty guarantees that they do their best to shield and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Creve Coeur, MO?
Financial advisors help Creve Coeur, MO individuals, families, and business owners attain their life goals by means of a array of financial services and proposals. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Creve Coeur, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications require ongoing 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 Creve Coeur, MO Fiduciaries?
Not all financial advisor in Creve Coeur, MO is fiduciaries. The main reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires strategies to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation transparent and reducing conflicts of interest. Other 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 must abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from an acceptable risk based on 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, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action 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 Creve Coeur, MO
Choosing to partner with a fiduciary financial advisor in Creve Coeur, MO brings to the table an array of advantages that can significantly influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Complete disclosure of pertinent materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Creve Coeur, MO family
- Manage investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that matches your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a tailored approach
- Consistent monitoring and guidance to ensure your financial strategies and investments remain on track and that you can adjust to any surprises the market or life throws your way
- Reduced risk with prudent and judicious investment choices made by meticulously assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being cared for by experienced financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations modify
Choose Correct Capital as Your Creve Coeur, MO Fiduciary Financial Advisor
Selecting a financial advisor in Creve Coeur, MO with a fiduciary duty is crucial to guarantee 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 place at the forefront the financial success and peace of mind of Creve Coeur, MO residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications essential to assist 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 through our website to set up an appointment and discover how we can help you reach your financial goals in Creve Coeur, MO.
