Fiduciary financial advisor in Huntleigh, MO. For Huntleigh, MO residents who lack the free time, knowledge, or interest to handle their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is crucial in that relationship, and whether you're planning for retirement, looking to increase your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Huntleigh, MO, you'll have a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Huntleigh, MO fiduciary financial advisors won't ever propose a product, investment, or strategy that we don't sincerely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a position of confidence and responsibility when managing assets, finances, or legal matters for another person. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions tasked with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals chosen by the court to make decisions on behalf of minors or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
- Real estate agents — Experts who assist clients in purchasing, 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 truthfully, with genuine intention, and without any aim to deceive or harm the interests of their beneficiaries. They must always 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 beneficiary, which means they must prioritize the beneficiary's interests over their own. They must eschew any conflicts of interest that could jeopardize their ability to act only in the beneficiary's best interests. All conflicts of interest need to be made known to the client and the advisor must still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a prudent person would apply in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they strive to protect and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Huntleigh, MO?
Financial advisors help Huntleigh, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services include investment choices, retirement planning, tax planning, estate planning, portfolio management and others.
Any individual in Huntleigh, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications demand ongoing education and a rigorous moral standard.
For instance, 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 Huntleigh, MO Fiduciaries?
Not all financial advisor in Huntleigh, MO are fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight relying on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Other advisors generally receive commissions or other forms of compensation associated with 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 can't 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 subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential 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 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Huntleigh, MO
Deciding to work with a fiduciary financial advisor in Huntleigh, MO brings to the table an array of benefits that can significantly influence your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Total disclosure of pertinent materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Huntleigh, MO family
- Manage investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a tailored approach
- Consistent 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 gives your way
- Minimized risk with prudent and judicious investment choices taken by thoroughly assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations modify
Hire Correct Capital as Your Huntleigh, MO Fiduciary Financial Advisor
Choosing a financial advisor in Huntleigh, MO with a fiduciary duty is essential to guarantee your long-term interests remain 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 Huntleigh, MO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential to lead 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.
Get in touch with us today at 877-930-4015 or contact us through our website to set up an appointment and learn more about how we can help you achieve your financial goals in Huntleigh, MO.
