Fiduciary financial advisor in Eureka, MO. For those in Eureka, MO who don't have the free time, knowledge, or interest to oversee their assets and retirement accounts themselves, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Eureka, MO, you'll gain a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Eureka, MO fiduciary financial advisors will never suggest a solution, investment, or approach that we don't genuinely have faith in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest at heart, call Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule a meeting with a member of our advisor team.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Understanding Fiduciaries
A fiduciary is a person or entity that maintains a role of trust and responsibility when managing assets, monetary matters, or legal affairs for another. Fiduciaries are legally and ethically obliged to act in the best interests of the person or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — People or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an responsibility to prioritize 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 appointed by the court to make decisions on behalf of people under 18 or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Professionals who aid 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or damage the interests of their beneficiaries. They must continually 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/beneficiary, which means they must put first the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might jeopardize their capacity to act solely in the beneficiary's best interests. All conflicts of interest must be made known 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 exercise the level of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty ensures that they strive to shield and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Eureka, MO?
Financial advisors help Eureka, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment choices, retirement planning, tax planning, estate planning, portfolio management and others.
Any individual in Eureka, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate ongoing education and a strict 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 Eureka, MO Fiduciaries?
Not all financial advisor in Eureka, MO is fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands strategies to be appropriate 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 proportional charge for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with product sales, which means they might make recommendations that are more in their interest than yours.
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 can't predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase from an acceptable risk based on 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 may apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Eureka, MO
Choosing to partner with a fiduciary financial advisor in Eureka, MO offers an array of benefits that can profoundly affect your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain ethical standards
- Complete disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Eureka, MO family
- Handle investments on your behalf by employing their expertise to craft and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, considering all facets of your financial life to establish a tailored approach
- Continuous monitoring and direction to guarantee your financial strategies and investments continue to be in line and that you can adjust to any unexpected situations the market or life presents your way
- Diminished risk with prudent and responsible investment choices done by thoroughly assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios alter
Hire Correct Capital as Your Eureka, MO Fiduciary Financial Advisor
Selecting a financial advisor in Eureka, MO with a fiduciary duty is essential to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Eureka, 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 skills and qualifications essential to guide 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.
Get in touch with us now at 877-930-4015 or contact us through our website to schedule an appointment and learn more about how we can aid you attain your financial goals in Eureka, MO.
