Fiduciary financial advisor in Des Peres, MO. For those in Des Peres, MO who lack the free time, knowledge, or interest to manage their assets and retirement accounts themselves, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Des Peres, MO, you'll have a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Des Peres, MO fiduciary financial advisors will never suggest a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, call Correct Capital now at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or organization that holds a role of trust and duty when managing assets, monetary matters, or legal matters on behalf of another person. 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 are:
- Trustees — People or institutions responsible for handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to handle the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to prioritize 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 — People chosen by the court to make decisions on behalf of people under 18 or people who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to act in the best interests of their clients when handling their cases.
- Real estate agents — Experts who aid 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 have an obligation to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any design to deceive or damage the interests of their beneficiaries. They must continually 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, which means they must put first the beneficiary's interests above their own. They should avoid any conflicts of interest that could compromise their ability to act only in the client's best interests. All conflicts of interest need to be made known to the client and the advisor needs to still act with the beneficiary's interest over 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 use 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 confirms that they strive to shield and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Des Peres, MO?
Financial advisors help Des Peres, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services include investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Anyone in Des Peres, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications demand persistent education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Des Peres, MO Fiduciaries?
Not all financial advisor in Des Peres, MO is 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 various regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands strategies to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary 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 mandates 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 is an early common law principle, and was subsequently unified with the Uniform Prudent Investor Act. Each state can 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 course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- Your needs for readily available funds, income, and preservation of capital
- An asset's unique 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 Des Peres, MO
Opting to collaborate with a fiduciary financial advisor in Des Peres, MO offers an array of benefits that can significantly impact your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to ethical standards
- Total disclosure of essential materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Des Peres, MO family
- Make investments on your behalf utilizing their expertise to develop and oversee 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 devise a tailored approach
- Ongoing monitoring and advice to ensure your financial plans and investments remain on track and that you can modify to any surprises the market or life gives your way
- Reduced risk with sensible and judicious investment choices made by thoroughly assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life situations alter
Hire Correct Capital as Your Des Peres, MO Fiduciary Financial Advisor
Choosing a financial advisor in Des Peres, 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 hold in high regard the financial success and peace of mind of Des Peres, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to lead you on your financial journey. We offer 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 through our website to set up an appointment and find out more about how we can aid you reach your financial goals in Des Peres, MO.
