Fiduciary financial advisor in Imperial, MO. For Imperial, MO residents who lack the free time, expertise, or inclination to manage their assets and retirement accounts on their own, partnering with a financial advisor offers peace of mind. Trust is crucial in that relationship, and whether you're planning for retirement, seeking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Imperial, MO, you'll gain a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Imperial, MO fiduciary financial advisors will never suggest a product, investment, or approach that we don't genuinely believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, reach out to Correct Capital now at 877-930-4015, contact us online, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a position of confidence and responsibility when managing assets, finances, or legal matters on behalf of another person. Fiduciaries are legally and ethically bound to work in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or organizations charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an duty to put first the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Experts who help 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests above their own. They should steer clear of any conflicts of interest that could compromise their ability to act solely in the beneficiary's best interests. Every conflicts of interest need to be revealed to the client or beneficiary and the advisor needs to still act with the client/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 apply in similar circumstances. They must make well-informed and considered decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to protect and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Imperial, MO?
Financial advisors help Imperial, MO individuals, families, and business owners realize their life goals through a array of financial services and suggestions. These services include investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Any individual in Imperial, MO can give themselves the title of "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. Obtaining and maintaining these certifications demand persistent 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 Imperial, MO Fiduciaries?
Not all financial advisor in Imperial, MO are fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands recommendations to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds 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 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 sensible person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Imperial, MO
Opting to collaborate with a fiduciary financial advisor in Imperial, MO brings to the table an array of advantages that can deeply influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain ethical standards
- Full disclosure of relevant materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Imperial, MO family
- Handle investments on your behalf by employing their expertise to develop and manage a diversified portfolio that matches 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 create a custom approach
- Consistent monitoring and direction to guarantee your financial plans and investments stay aligned and that you can modify to any unexpected situations the market or life gives your way
- Reduced risk with wise and judicious investment choices taken by thoroughly assessing the risk linked with each investment and shaping your portfolio to correspond with your risk tolerance
- Relief that your best interests are being watched over by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life conditions modify
Hire Correct Capital as Your Imperial, MO Fiduciary Financial Advisor
Selecting a financial advisor in Imperial, MO with a fiduciary standard is essential 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 place at the forefront the financial success and peace of mind of Imperial, 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 needed 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 discover how we can help you reach your financial goals in Imperial, MO.
