Fiduciary financial advisor in Imperial, MO. For those in Imperial, MO who don't have the free time, skill, or interest to oversee 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 grow your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Imperial, MO, you'll have a confidante who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Imperial, MO fiduciary financial advisors won't ever propose a product, investment, or strategy that we don't truly believe in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, call Correct Capital now at 877-930-4015, contact us online, or schedule a meeting 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, monetary matters, or legal matters on behalf of someone else. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization 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 are:
- Trustees — Individuals or institutions charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People appointed by the court to make decisions on behalf of minors or individuals 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 dealing with legal matters.
- Real estate agents — Professionals 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with sincerity, and without any design to deceive or infringe upon 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 client/beneficiary, which means they must prioritize the beneficiary's interests over their own. They must steer clear of any conflicts of interest that could impair their ability to act solely in the beneficiary's best interests. Any conflicts of interest need to be disclosed to the client or beneficiary and the advisor must still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the degree of care, skill, and diligence that a wise person would use in like circumstances. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client. This duty guarantees that they do their best to safeguard and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Imperial, MO?
Financial advisors help Imperial, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Anyone in Imperial, MO can give themselves the title of "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. Obtaining and retaining 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 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 different regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires advice to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors generally 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 need 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 with 100% certainty, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase considering an acceptable risk in light of 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 can apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach 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 special 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 Imperial, MO
Deciding to work with a fiduciary financial advisor in Imperial, MO brings to the table an array of benefits that can significantly influence your financial health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Total disclosure of relevant materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Imperial, MO family
- Handle investments on your behalf by employing their expertise to create and manage a diversified portfolio that resonates with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to create a custom approach
- Continuous monitoring and advice to ensure your financial strategies and investments remain on track and that you can adjust to any surprises the market or life throws your way
- Reduced risk with wise and judicious investment choices done by meticulously assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios modify
Choose Correct Capital as Your Imperial, MO Fiduciary Financial Advisor
Selecting a financial advisor in Imperial, MO with a fiduciary duty is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Imperial, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to assist you on your financial journey. We give all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Contact us now at 877-930-4015 or contact us online to set up an appointment and discover how we can help you reach your financial goals in Imperial, MO.
