Fiduciary financial advisor in Creve Coeur, MO. For those in Creve Coeur, MO who don't have the time, skill, or inclination to manage their investments and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing 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 working with a fiduciary financial advisor in Creve Coeur, MO, you'll have a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Creve Coeur, MO fiduciary financial advisors won't ever recommend a solution, investment, or strategy that we don't sincerely have faith in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a position of trust and responsibility when managing assets, finances, or legal concerns on behalf of another person. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity they are serving, often known 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 — People or entities tasked with handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed to manage 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 obligation to prioritize the client's financial goals.
- Corporate directors — Representatives 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 incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when handling legal matters.
- Real estate agents — Experts who assist clients in purchasing, 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 important elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or infringe upon 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/beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They must eschew any conflicts of interest that could compromise their capability to act exclusively in the client's best interests. Any conflicts of interest need to be disclosed 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 employ the level of care, skill, and diligence that a prudent person would employ in comparable circumstances. They must make informed and considered decisions when managing assets or deciding on behalf of their client. This duty guarantees that they strive to safeguard and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Creve Coeur, MO?
Financial advisors help Creve Coeur, MO individuals, families, and business owners realize their life goals through a array of financial services and recommendations. These services consist of investment strategies, retirement planning, tax planning, estate planning, portfolio management and more.
Any person in Creve Coeur, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications demand persistent education and a stringent moral standard.
For instance, 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 Creve Coeur, MO Fiduciaries?
Not all financial advisor in Creve Coeur, MO are fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation transparent and minimizing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation linked to product sales, which means they could 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 can't predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a prudent person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you have
- Your needs for liquidity, 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 Creve Coeur, MO
Opting to collaborate with a fiduciary financial advisor in Creve Coeur, MO brings to the table an array of benefits that can deeply affect your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain professional standards
- Full disclosure of essential materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Creve Coeur, MO family
- Make investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a personalized approach
- Consistent monitoring and direction to ensure your financial tactics and investments continue to be in line and that you can adjust to any surprises the market or life throws your way
- Diminished risk with wise and judicious investment choices made by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being cared for by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios modify
Hire Correct Capital as Your Creve Coeur, MO Fiduciary Financial Advisor
Selecting a financial advisor in Creve Coeur, MO with a fiduciary duty 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 prioritize the financial success and peace of mind of Creve Coeur, MO individuals 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 necessary 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.
Get in touch with us now at 877-930-4015 or contact us online to set up an appointment and discover how we can assist you reach your financial goals in Creve Coeur, MO.
