Fiduciary financial advisor in Dardenne Prairie, MO. For Dardenne Prairie, MO residents who don't have the free time, expertise, or inclination to manage their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is vital in that relationship, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Dardenne Prairie, MO, you'll gain a confidante who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Dardenne Prairie, MO fiduciary financial advisors won't ever propose a solution, investment, or approach that we don't genuinely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, call Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule a meeting with a member of our advisor team.
A fiduciary is a individual or entity that maintains a position of trust and responsibility when managing assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically obliged to act in the best interests of the person or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or organizations charged with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers 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 — Specialists 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 have an obligation to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any design to deceive or harm the interests of their beneficiaries. They must always 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 ahead of their own. They must steer clear of any conflicts of interest that might jeopardize their ability to act solely in the beneficiary's best interests. Every conflicts of interest need to be made known to the client or beneficiary and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a prudent 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 confirms that they strive to protect and expand the assets under 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 comprise investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Dardenne Prairie, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate persistent education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Dardenne Prairie, MO Fiduciaries?
Not all financial advisor in Dardenne Prairie, MO are fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which mandates strategies to be fitting for clients but doesn't require 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, making their compensation transparent and reducing conflicts of interest. Other advisors generally receive commissions or different kinds of compensation tied 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 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 know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase considering an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible 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 own
- 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 expected 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 benefits that can profoundly impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain high standards
- Full disclosure of essential materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Dardenne Prairie, MO family
- Manage investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Consistent monitoring and direction to ensure your financial strategies and investments stay aligned and that you can adjust to any unexpected situations the market or life throws your way
- Diminished risk with prudent and accountable investment choices made by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios change
Hire 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 guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Dardenne Prairie, 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 necessary to assist you on your financial journey. We give all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.