Fiduciary financial advisor in Des Peres, MO. For Des Peres, MO residents who lack the free time, expertise, or interest 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 increase 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 Des Peres, 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 Des Peres, MO fiduciary financial advisors will never suggest a product, investment, or strategy that we do not sincerely have faith in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest at heart, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a role of confidence and duty when handling assets, finances, or legal concerns on behalf of someone else. Fiduciaries are legally and ethically obliged to act in the best interests of the person or entity they are serving, 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 are:
- Trustees — Individuals or entities responsible for managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who offer 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 — Individuals designated by the court to make decisions on behalf of people under 18 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 cases.
- Real estate agents — Specialists 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 important aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any aim to deceive or damage 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, which means they must put first the beneficiary's interests over their own. They ought to eschew any conflicts of interest that might jeopardize their ability to act solely in the client's best interests. Every conflicts of interest need to be made known 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 standard of care, skill, and diligence that a wise person would employ 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 do their best to protect and grow 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 comprise investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Des Peres, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require continuous education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Des Peres, MO Fiduciaries?
Not all financial advisor in Des Peres, MO is fiduciaries. The main reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks based on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which mandates investments to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase considering an acceptable risk in light of 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 might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role 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 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 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 monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain ethical standards
- Total disclosure of essential materials and facts and full transparency regarding 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 manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Consistent monitoring and guidance to guarantee your financial tactics and investments continue to be in line and that you can modify to any unexpected situations the market or life throws your way
- Diminished risk with sensible and accountable investment choices taken by meticulously assessing the risk tied to each investment and modifying your portfolio to align with your risk tolerance
- Assurance that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios modify
Choose Correct Capital as Your Des Peres, MO Fiduciary Financial Advisor
Selecting a financial advisor in Des Peres, MO with a fiduciary duty is vital to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are proud 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 alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications necessary to guide 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.
Contact us today at 877-930-4015 or contact us online to schedule an appointment and find out more about how we can help you achieve your financial goals in Des Peres, MO.
