Fiduciary financial advisor in Fenton, MO. For Fenton, MO residents who lack the time, skill, or interest to oversee their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to increase your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Fenton, 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 Fenton, MO fiduciary financial advisors won't ever suggest a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and work with your best interest at heart, call Correct Capital now at 314-930-401(k), contact us through our wesbite, or schedule an appointment with on of our advisors.
A fiduciary is a person or entity that holds a role of confidence and responsibility when handling assets, finances, or legal affairs on behalf of another. Fiduciaries are legally and ethically committed 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 known as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — Individuals or entities charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to put first 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 — Individuals designated by the court to make decisions on behalf of underage individuals or individuals who are not able 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 dealing with their legal affairs.
- Real estate agents — Experts who aid clients in buying, 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must always 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 beneficiary, 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 capability to act only in the client's best interests. Every conflicts of interest must be revealed to the client and the advisor has to still act with the client/beneficiary's interest over 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 similar circumstances. They must make well-informed and thoughtful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they work diligently to protect and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Fenton, MO?
Financial advisors help Fenton, MO individuals, families, and business owners achieve 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 person in Fenton, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand persistent education and a stringent moral standard.
To illustrate, 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 Fenton, MO Fiduciaries?
Not all financial advisor in Fenton, MO are fiduciaries. The main reason is that financial advisors can function under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. For example, 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 recommendations 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 often charge a percentage fee for their services, making their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds of compensation linked to product sales, which means they could 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 ahead of time, but stipulates that a fiduciary financial advisor select investments that a prudent 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 later unified with the Uniform Prudent Investor Act. Each state might apply their own unique 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 role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Fenton, MO
Choosing to partner with a fiduciary financial advisor in Fenton, MO provides an array of advantages that can deeply impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Full disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Fenton, MO family
- Handle investments on your behalf by leveraging their expertise to craft and manage a diversified portfolio that aligns with your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to create a tailored approach
- Continuous monitoring and direction to guarantee your financial plans and investments continue to be in line and that you can adjust to any unexpected situations the market or life gives your way
- Diminished risk with sensible and accountable investment choices done by thoroughly assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Relief that your best interests are being looked after by knowledgeable financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life situations modify
Hire Correct Capital as Your Fenton, MO Fiduciary Financial Advisor
Choosing a financial advisor in Fenton, 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 prioritize the financial success and peace of mind of Fenton, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications necessary 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.