Fiduciary financial advisor in Glendale, MO. For Glendale, MO residents who don't have the time, knowledge, or inclination to manage their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is vital in that partnership, and whether you're planning for retirement, looking to increase your wealth, or ensuring a safe financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Glendale, MO, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Glendale, MO fiduciary financial advisors won't ever suggest a solution, investment, or approach that we do not sincerely have faith in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest as their top priority, call Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a individual or entity that occupies a role of trust and duty when overseeing assets, finances, or legal affairs for another person. Fiduciaries are legally and ethically committed to work in the best interests of the individual or entity 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 — Individuals or institutions tasked with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who provide financial advice and handle 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 — Individuals designated by the court to make decisions on behalf of underage individuals or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Experts who aid clients in purchasing, 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 have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or harm the interests of their beneficiaries. They must always act honestly 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 ahead of their own. They ought to eschew any conflicts of interest that could compromise their capability to act only in the client's best interests. All conflicts of interest need to be made known to the client and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a judicious person would employ in comparable circumstances. They must make informed and thoughtful decisions when handling assets or making decisions on behalf of their client. This duty confirms that they work diligently to safeguard and increase the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Glendale, MO?
Financial advisors help Glendale, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and others.
Anyone in Glendale, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications require persistent education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Glendale, MO Fiduciaries?
Not all financial advisor in Glendale, MO are fiduciaries. The main reason is that financial advisors can function under different regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks based on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which demands advice to be fitting for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation tied 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, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for 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 may apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall 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
- Additional assets and resources you have
- Your needs for readily available funds, 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Glendale, MO
Choosing to partner with a fiduciary financial advisor in Glendale, MO brings to the table an array of advantages that can profoundly impact your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Complete disclosure of relevant materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Glendale, MO family
- Make investments on your behalf utilizing their expertise to craft and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
- Continuous monitoring and direction to ensure your financial tactics and investments stay aligned and that you can modify to any unexpected situations the market or life throws your way
- Diminished risk with wise and responsible investment choices taken by meticulously assessing the risk linked with each investment and shaping your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life scenarios alter
Hire Correct Capital as Your Glendale, MO Fiduciary Financial Advisor
Selecting a financial advisor in Glendale, MO with a fiduciary standard is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased 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 skills and qualifications needed 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.
Get in touch with us now at 877-930-4015 or contact us online to arrange an appointment and learn more about how we can help you reach your financial goals in Glendale, MO.
