Fiduciary financial advisor in Frontenac, MO. For Frontenac, MO residents who lack the free time, expertise, or inclination to oversee their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. 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 propose a product, investment, or approach that we don't genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital now at 314-930-401(k), contact us online, or schedule an appointment with a member of our advisor team.
A fiduciary is a individual or organization that holds a position of trust and duty when handling assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically obliged to work in the best interests of the individual or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or organizations charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act 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 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required 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 harm 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 prioritize the beneficiary's interests over their own. They must avoid any conflicts of interest that might jeopardize their capability to act only in the beneficiary's best interests. All conflicts of interest must be disclosed to the client or beneficiary 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 employ the degree of care, skill, and diligence that a judicious person would employ in comparable circumstances. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they do their best to safeguard 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 realize their life goals as they relate to their finances. These services include investment recommendations, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Frontenac, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications necessitate ongoing education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Frontenac, MO Fiduciaries?
Not all financial advisor in Frontenac, MO is fiduciaries. The primary reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which mandates advice to be fitting for clients but does not mandate 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 percentage fee for their services, making their compensation clear and minimizing conflicts of interest. Other advisors typically receive commissions or other forms of compensation linked 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase considering 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 may apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or approach plays within your portfolio
- Expected return 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Frontenac, MO
Opting to collaborate with a fiduciary financial advisor in Frontenac, MO provides an array of advantages that can significantly influence your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Full 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 Frontenac, MO family
- Manage investments on your behalf by leveraging their expertise to develop and oversee a diversified portfolio that matches 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 establish a custom approach
- Continuous monitoring and direction to ensure your financial strategies and investments continue to be in line and that you can adjust to any unexpected situations the market or life throws your way
- Reduced risk with wise and judicious investment choices made by carefully assessing the risk associated with each investment and shaping your portfolio to correspond with your risk tolerance
- Relief that your best interests are being watched over by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life situations modify
Hire Correct Capital as Your Frontenac, MO Fiduciary Financial Advisor
Choosing a financial advisor in Frontenac, 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 hold in high regard the financial success and peace of mind of Frontenac, MO residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary to assist 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.