Fiduciary financial advisor in Frontenac, MO. For Frontenac, MO residents who lack the free time, expertise, or inclination to oversee their assets and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to increase your wealth, or ensuring a safe financial future for your family, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Frontenac, MO, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Frontenac, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we do not truly trust in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, reach out to Correct Capital now at 877-930-4015, contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a position of confidence and duty when managing assets, finances, or legal concerns for another. Fiduciaries are legally and ethically committed to work in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or institutions charged with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to handle 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 obligation to emphasize 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 — People designated by the court to make decisions on behalf of people under 18 or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to work in the best interests of their clients when handling legal matters.
- Real estate agents — Professionals who help 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 important elements 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 with integrity, with genuine intention, and without any aim to mislead or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that could jeopardize their ability to act exclusively in the client's best interests. Every conflicts of interest need to be made known to the client and the advisor has to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a wise person would apply in the same or similar situations. They must make well-informed and considered decisions when managing assets or deciding on behalf of their client or beneficiary. This duty confirms that they strive to protect and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Frontenac, MO?
Financial advisors help Frontenac, MO individuals, families, and business owners attain their life goals via a variety of financial services and recommendations. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Frontenac, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications require ongoing education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must follow 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 Frontenac, MO Fiduciaries?
Not all financial advisor in Frontenac, MO are fiduciaries. The key reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which requires recommendations to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation transparent and minimizing conflicts of interest. Other advisors generally receive commissions or other forms of compensation linked to 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, commonly 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 prudent person would purchase considering an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General 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 have
- Your needs for liquidity, income, and preservation of capital
- An asset's distinctive 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 Frontenac, MO
Deciding to work with a fiduciary financial advisor in Frontenac, MO brings to the table an array of advantages that can deeply affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Frontenac, 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
- Thorough financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a custom approach
- Consistent monitoring and direction to ensure your financial tactics and investments remain on track and that you can modify to any unexpected situations the market or life gives your way
- Diminished risk with sensible and accountable investment choices taken by carefully assessing the risk tied to each investment and modifying your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life conditions change
Hire Correct Capital as Your Frontenac, MO Fiduciary Financial Advisor
Selecting a financial advisor in Frontenac, MO with a fiduciary standard is essential to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Frontenac, MO residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications needed to lead 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 through our website to schedule an appointment and discover how we can aid you reach your financial goals in Frontenac, MO.
