Fiduciary financial advisor in Fenton, MO. For Fenton, MO residents who lack the time, knowledge, or interest to manage their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that relationship, and whether you're planning for retirement, seeking 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 Fenton, MO, you'll gain a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Fenton, MO fiduciary financial advisors will never recommend a product, investment, or plan that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest in mind, call Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a individual or entity that occupies a position of trust and responsibility when handling assets, finances, or legal matters for someone else. Fiduciaries are legally and ethically committed to act in the best interests of the person or entity 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.
Typical examples of fiduciaries include:
- Trustees — People or organizations tasked with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Experts who help 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, with sincerity, and without any design to deceive or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests over their own. They should steer clear of any conflicts of interest that might impair 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 must still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would employ in like circumstances. They must make informed and careful decisions when handling assets or making decisions on behalf of their client. This duty confirms that they do their best to safeguard and increase the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Fenton, MO?
Financial advisors help Fenton, MO individuals, families, and business owners attain their life goals through a range of financial services and suggestions. These services include investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Any individual in Fenton, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications require continuous education and a rigorous moral standard.
For instance, 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 Fenton, MO Fiduciaries?
Not all financial advisor in Fenton, MO is fiduciaries. The main reason lies in the fact that financial advisors can work under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which requires investments to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation transparent and reducing conflicts of interest. Other advisors usually receive commissions or other forms of compensation tied to product sales, which means they may 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 know which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor select investments that a reasonable person would purchase from 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 subsequently 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 implications of investments
- The part that each investment or course of action 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 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 Fenton, MO
Deciding to work with a fiduciary financial advisor in Fenton, MO offers an array of benefits that can profoundly influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Full disclosure of relevant materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Fenton, MO family
- Handle investments on your behalf by leveraging their expertise to create and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
- Continuous monitoring and advice to ensure your financial strategies and investments continue to be in line and that you can modify to any surprises the market or life gives your way
- Diminished risk with prudent and accountable investment choices taken by meticulously assessing the risk associated with each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life scenarios modify
Choose Correct Capital as Your Fenton, MO Fiduciary Financial Advisor
Choosing a financial advisor in Fenton, MO with a fiduciary standard is crucial to guarantee 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 Fenton, MO residents 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 necessary 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 set up an appointment and discover how we can aid you reach your financial goals in Fenton, MO.
