Fiduciary financial advisor in Ellisville, MO. For those in Ellisville, MO who lack the free time, skill, or inclination to handle their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're preparing for retirement, looking to grow 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 Ellisville, 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 Ellisville, MO fiduciary financial advisors won't ever propose a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
Understanding Fiduciaries
A fiduciary is a individual or entity that occupies a position of confidence and duty when managing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically committed to operate in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or organizations responsible for handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People designated to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an obligation to emphasize 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 — People chosen by the court to make decisions on behalf of people under 18 or people who are incapable to make decisions for themselves.
- Attorneys — Legal professionals 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 — Professionals who assist 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 facets 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 with integrity, with sincerity, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently 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 prioritize the beneficiary's interests ahead of their own. They ought to eschew any conflicts of interest that could jeopardize their capacity to act only in the beneficiary's best interests. Any conflicts of interest need to be disclosed to the client and the advisor must still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make well-informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to safeguard and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Ellisville, MO?
Financial advisors help Ellisville, 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 others.
Any person in Ellisville, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications require persistent education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Ellisville, MO Fiduciaries?
Not all financial advisor in Ellisville, MO are fiduciaries. The primary reason is that financial advisors can function under various regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates strategies to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation open and minimizing conflicts of interest. Other advisors usually receive commissions or other forms of compensation associated with 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, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a reasonable 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 later unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall 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 liquidity, 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Ellisville, MO
Choosing to partner with a fiduciary financial advisor in Ellisville, MO offers an array of advantages that can significantly affect your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to high standards
- Complete disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Ellisville, MO family
- Make investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that matches your goals and strategies
- 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
- Continuous monitoring and guidance to ensure your financial strategies and investments continue to be in line and that you can adapt to any unexpected situations the market or life throws your way
- Diminished risk with sensible and accountable investment choices taken by thoroughly assessing the risk associated with each investment and modifying your portfolio to match your risk tolerance
- Relief that your best interests are being watched over by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios change
Hire Correct Capital as Your Ellisville, MO Fiduciary Financial Advisor
Choosing a financial advisor in Ellisville, MO with a fiduciary duty is vital to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Ellisville, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed 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.
Contact us today at 877-930-4015 or contact us online to arrange an appointment and find out more about how we can aid you achieve your financial goals in Ellisville, MO.
