Fiduciary financial advisor in Jefferson County, MO. For those in Jefferson County, MO who lack the free time, skill, or interest to oversee their investments and retirement accounts themselves, working with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're preparing for retirement, seeking to grow your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Jefferson County, MO, you'll gain a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Jefferson County, MO fiduciary financial advisors will never recommend a solution, investment, or approach that we don't genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a person or entity that holds a role of trust and responsibility when overseeing assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically obliged to operate 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 known as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or organizations charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when handling legal matters.
- Real estate agents — Experts who help 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any design to deceive or damage the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients as a priority.
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 avoid any conflicts of interest that might impair their ability to act solely in the client's best interests. All conflicts of interest must be disclosed to the client and the advisor has to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client or beneficiary. This duty ensures that they do their best to safeguard and expand the assets under their care while minimizing 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 via a range of financial services and suggestions. These services consist of investment choices, retirement planning, tax planning, estate planning, portfolio management and more.
Any individual in Jefferson County, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand continuous education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Jefferson County, MO Fiduciaries?
Not all financial advisor in Jefferson County, MO are fiduciaries. The main reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands 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 typically charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation associated with product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, often 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 from 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 may apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- Your needs for readily available funds, 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 Jefferson County, MO
Deciding to work with a fiduciary financial advisor in Jefferson County, MO offers an array of advantages that can profoundly affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Total disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Jefferson County, MO family
- Make investments on your behalf by employing their expertise to develop and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a tailored approach
- Ongoing monitoring and guidance to guarantee your financial plans and investments continue to be in line and that you can adjust to any unexpected situations the market or life presents your way
- Diminished risk with sensible and responsible investment choices made by thoroughly assessing the risk linked with each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being cared for by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios alter
Hire Correct Capital as Your Jefferson County, MO Fiduciary Financial Advisor
Choosing a financial advisor in Jefferson County, MO with a fiduciary standard is essential to ensure 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 hold in high regard the financial success and peace of mind of Jefferson County, MO residents 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 guide 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.
Reach out to us today at 877-930-4015 or contact us online to arrange an appointment and learn more about how we can help you attain your financial goals in Jefferson County, MO.
