Fiduciary financial advisor in Jefferson County, MO. For Jefferson County, MO residents who lack the free time, expertise, or inclination to oversee their assets and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. Trust is vital in that relationship, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Jefferson County, 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 Jefferson County, MO fiduciary financial advisors will never recommend a product, investment, or plan that we do not genuinely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or organization that maintains a role of trust and responsibility when handling assets, finances, or legal matters for someone else. Fiduciaries are legally and ethically obliged 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 known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — People appointed to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of people under 18 or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Professionals who aid 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any intention to mislead 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 ahead of their own. They should avoid any conflicts of interest that could impair their capacity to act only in the client's best interests. All conflicts of interest must be revealed to the client or beneficiary and the advisor needs to still act with the beneficiary's interest over 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 the same or similar situations. They must make well-informed and thoughtful decisions when overseeing assets or deciding on behalf of their client. This duty confirms that they work diligently to safeguard and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Jefferson County, MO?
Financial advisors help Jefferson County, 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, asset management and more.
Any individual in Jefferson County, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications necessitate continuous education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Jefferson County, MO Fiduciaries?
Not all financial advisor in Jefferson County, MO are fiduciaries. The primary reason is that financial advisors can work under different regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands advice to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation transparent and minimizing 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 must 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 know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase 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 subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Jefferson County, MO
Opting to collaborate with a fiduciary financial advisor in Jefferson County, MO offers an array of benefits that can significantly influence your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Full disclosure of relevant materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Jefferson County, MO family
- Make investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a custom approach
- Ongoing monitoring and direction to ensure your financial tactics and investments stay aligned and that you can adjust to any unexpected situations the market or life gives your way
- Reduced risk with wise and responsible investment choices taken by thoroughly assessing the risk associated with each investment and modifying your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations modify
Hire Correct Capital as Your Jefferson County, MO Fiduciary Financial Advisor
Selecting a financial advisor in Jefferson County, 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 prioritize the financial success and peace of mind of Jefferson County, MO residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to lead 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.
Get in touch with us now at 877-930-4015 or contact us online to schedule an appointment and learn more about how we can aid you achieve your financial goals in Jefferson County, MO.
