Fiduciary financial advisor in Huntleigh, MO. For Huntleigh, MO residents who lack the time, knowledge, or inclination to handle their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're planning for retirement, seeking to manage 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 Huntleigh, MO, you'll gain a confidante 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 suggest a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that holds a role of trust and responsibility when managing assets, monetary matters, or legal concerns on behalf of another. Fiduciaries are legally and ethically committed to work in the best interests of the person or entity they are representing, often known 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 charged with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — People designated by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when managing their legal affairs.
- Real estate agents — Specialists 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any intention to mislead or damage 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, which means they must put first the beneficiary's interests ahead of their own. They ought to steer clear of any conflicts of interest that could jeopardize their capacity to act solely in the beneficiary's best interests. Every 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 informed and careful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they strive to shield and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Huntleigh, MO?
Financial advisors help Huntleigh, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Huntleigh, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 Huntleigh, MO Fiduciaries?
Not all financial advisor in Huntleigh, MO are fiduciaries. The primary reason lies in the fact that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which mandates recommendations to be appropriate 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 typically charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation associated with 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 mandates that a fiduciary financial advisor select investments that a sensible person would purchase considering an acceptable risk based on 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 may apply their own particular laws. Missouri law, for example, sets out 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 unique relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the expected 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 impact your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain professional standards
- Complete disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Huntleigh, MO family
- Handle investments on your behalf by employing their expertise to craft and manage a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a tailored approach
- Continuous monitoring and direction to guarantee your financial strategies and investments remain on track and that you can adapt to any surprises the market or life presents your way
- Diminished risk with prudent and accountable investment choices taken by thoroughly assessing the risk tied to each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being looked after by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios change
Choose Correct Capital as Your Huntleigh, MO Fiduciary Financial Advisor
Choosing a financial advisor in Huntleigh, MO with a fiduciary standard is crucial to guarantee your money is being put to use how you need it to be. 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 residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary 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 online to schedule an appointment and discover how we can help you achieve your financial goals in Huntleigh, MO.
