Fiduciary financial advisor in Dardenne Prairie, MO. For Dardenne Prairie, MO residents who lack the time, skill, or interest to manage their investments and retirement accounts themselves, working with a financial advisor provides peace of mind. Trust is paramount in that relationship, and whether you're preparing for retirement, seeking to manage your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Dardenne Prairie, 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 Dardenne Prairie, MO fiduciary financial advisors won't ever suggest a solution, investment, or plan that we do not sincerely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest at heart, call Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a role of confidence and duty when managing assets, monetary matters, or legal concerns on behalf of someone else. Fiduciaries are legally and ethically committed to work in the best interests of the person or organization 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 include:
- Trustees — People or entities charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an duty to put first the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Professionals who help 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with sincerity, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests above their own. They should steer clear of any conflicts of interest that could impair their ability to act solely in the beneficiary's best interests. Every conflicts of interest need to be disclosed to the client or beneficiary 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 standard 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 managing assets or deciding on behalf of their client. This duty ensures that they work diligently to protect and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Dardenne Prairie, MO?
Financial advisors help Dardenne Prairie, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services consist of investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any person in Dardenne Prairie, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications necessitate continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must comply with 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 Dardenne Prairie, MO Fiduciaries?
Not all financial advisor in Dardenne Prairie, MO is fiduciaries. The key 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 based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands recommendations to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation associated with product sales, which means they could 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 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 reasonable person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- 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 Dardenne Prairie, MO
Choosing to partner with a fiduciary financial advisor in Dardenne Prairie, MO provides an array of advantages that can significantly affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
- Total disclosure of relevant materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Dardenne Prairie, MO family
- Handle investments on your behalf by employing their expertise to craft and handle a diversified portfolio that aligns with your goals and strategies
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to devise a custom approach
- Ongoing monitoring and direction to ensure your financial plans and investments stay aligned and that you can adjust to any curveballs the market or life throws your way
- Minimized risk with wise and accountable investment choices made by thoroughly assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios change
Choose Correct Capital as Your Dardenne Prairie, MO Fiduciary Financial Advisor
Choosing a financial advisor in Dardenne Prairie, MO with a fiduciary duty is crucial 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 Dardenne Prairie, MO individuals and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications necessary to lead 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 now at 877-930-4015 or contact us online to schedule an appointment and discover how we can assist you attain your financial goals in Dardenne Prairie, MO.
