Fiduciary financial advisor in Glendale, MO. For Glendale, MO residents who lack the time, knowledge, or inclination to handle their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're planning for retirement, looking to grow your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Glendale, MO, you'll have a ally who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Glendale, MO fiduciary financial advisors won't ever propose a product, investment, or approach that we do not sincerely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, call Correct Capital now at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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What Is a Fiduciary?
A fiduciary is a individual or entity that holds a role of confidence 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 entity they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or entities charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People designated to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an responsibility 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 — Individuals chosen by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when dealing with their cases.
- Real estate agents — Specialists 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 important aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated 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 damage 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 beneficiary, which means they must put first the beneficiary's interests over their own. They should eschew any conflicts of interest that could impair their capability to act solely in the client's best interests. Every conflicts of interest need to be disclosed to the client or beneficiary and the advisor must 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 prudent person would apply in like circumstances. They must make well-informed and thoughtful decisions when managing 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 reducing risks.
What Is a Fiduciary Financial Advisor in Glendale, MO?
Financial advisors help Glendale, MO individuals, families, and business owners attain their life goals through a variety of financial services and proposals. These services consist of investment choices, retirement planning, tax planning, estate planning, portfolio management and more.
Any individual in Glendale, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications require ongoing education and a rigorous moral standard.
For instance, 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 Glendale, MO Fiduciaries?
Not all financial advisor in Glendale, MO is fiduciaries. The key reason lies in the fact that financial advisors can work under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight based on their business model. As an 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 mandates recommendations to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually 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 need to abide by the Prudent-Person Rule, also 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 purchase investments that a prudent person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences 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 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 Glendale, MO
Opting to collaborate with a fiduciary financial advisor in Glendale, MO offers an array of advantages that can deeply impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to ethical standards
- Full disclosure of essential materials and facts and complete transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Glendale, MO family
- Manage investments on your behalf by leveraging their expertise to develop and oversee a diversified portfolio that aligns with your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a personalized approach
- Ongoing monitoring and direction to guarantee your financial plans and investments remain on track and that you can adjust to any curveballs the market or life gives your way
- Diminished risk with sensible and accountable investment choices made by meticulously assessing the risk associated with each investment and shaping your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being looked after by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios modify
Choose Correct Capital as Your Glendale, MO Fiduciary Financial Advisor
Choosing a financial advisor in Glendale, MO with a fiduciary standard is vital to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Glendale, 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 necessary to assist 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 arrange an appointment and learn more about how we can assist you reach your financial goals in Glendale, MO.
