Fiduciary financial advisor in Eureka, MO. For Eureka, MO residents who lack the time, skill, or interest to handle their investments and retirement accounts themselves, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Eureka, MO, you'll gain a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Eureka, MO fiduciary financial advisors won't ever recommend a solution, investment, or approach that we do not sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that occupies a position of confidence and duty when handling assets, finances, or legal affairs for another person. Fiduciaries are legally and ethically obliged to act in the best interests of the individual 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.
Common examples of fiduciaries are:
- Trustees — Individuals or entities charged with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an duty to put first 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 underage individuals or individuals who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to work in the best interests of their clients when handling their cases.
- Real estate agents — Professionals 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any design to deceive or harm 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 put first the beneficiary's interests over their own. They ought to avoid any conflicts of interest that might jeopardize their ability to act solely in the beneficiary's best interests. Every conflicts of interest must be disclosed to the client or beneficiary and the advisor needs 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 level of care, skill, and diligence that a prudent person would employ in comparable circumstances. They must make well-informed and careful decisions when managing assets or making decisions on behalf of their client. This duty ensures that they do their best to protect and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Eureka, MO?
Financial advisors help Eureka, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any person in Eureka, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications necessitate continuous education and a stringent moral standard.
To illustrate, 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 Eureka, MO Fiduciaries?
Not all financial advisor in Eureka, MO is fiduciaries. The key reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands strategies to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation tied to 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, 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 mandates that a fiduciary financial advisor purchase investments that a sensible person would purchase based on an acceptable risk considering 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 can apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you own
- 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Eureka, MO
Deciding to work with a fiduciary financial advisor in Eureka, MO brings to the table an array of benefits that can deeply influence your financial health:
- Fiduciary financial advisers must act in your best interest and uphold professional standards
- Total disclosure of essential materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Eureka, MO family
- Make investments on your behalf utilizing their expertise to develop and manage a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
- Continuous monitoring and direction to ensure your financial tactics and investments remain on track and that you can adjust to any curveballs the market or life presents your way
- Diminished risk with sensible and judicious investment choices made by thoroughly assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being watched over by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations alter
Choose Correct Capital as Your Eureka, MO Fiduciary Financial Advisor
Choosing a financial advisor in Eureka, MO with a fiduciary standard is essential to guarantee your money is being put to use how you need it to be. 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 residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed 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 through our website to schedule an appointment and find out more about how we can help you achieve your financial goals in Eureka, MO.
