Fiduciary financial advisor in Kirkwood, MO. For those in Kirkwood, MO who lack the free time, expertise, or inclination to oversee their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, seeking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Kirkwood, MO, you'll gain a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Kirkwood, MO fiduciary financial advisors won't ever suggest a solution, investment, or approach that we do not genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital now at 877-930-4015, contact us online, or schedule a meeting with on of our advisors.
Understanding Fiduciaries
A fiduciary is a person or entity that holds a position of confidence and duty when overseeing assets, finances, or legal concerns for another person. Fiduciaries are legally and ethically bound to operate in the best interests of the person or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — Individuals or institutions charged with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals chosen to oversee the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of people under 18 or persons who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Specialists 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 important elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently 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 above their own. They must eschew any conflicts of interest that might jeopardize their ability to act only in the client's best interests. Any conflicts of interest must be made known to the client or beneficiary and the advisor needs to still act with the client/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 apply in similar circumstances. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to shield and grow the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Kirkwood, MO?
Financial advisors help Kirkwood, MO individuals, families, and business owners achieve their life goals through a variety of financial services and recommendations. These services consist of investment choices, retirement planning, tax planning, estate planning, asset management and others.
Anyone in Kirkwood, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications require ongoing education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Kirkwood, MO Fiduciaries?
Not all financial advisor in Kirkwood, MO is fiduciaries. The primary reason is that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires investments to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Other advisors usually receive commissions or other forms 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 go for investments that a sensible person would purchase from an acceptable risk based on 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, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part 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 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Kirkwood, MO
Choosing to partner with a fiduciary financial advisor in Kirkwood, MO brings to the table an array of advantages that can deeply affect your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain high standards
- Full disclosure of essential materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Kirkwood, MO family
- Manage investments on your behalf by leveraging their expertise to craft and handle a diversified portfolio that matches your goals and strategies
- Comprehensive financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a tailored approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can adjust to any unexpected situations the market or life gives your way
- Diminished risk with sensible and accountable investment choices made by carefully assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being cared for by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life scenarios modify
Choose Correct Capital as Your Kirkwood, MO Fiduciary Financial Advisor
Selecting a financial advisor in Kirkwood, MO with a fiduciary duty is vital 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 Kirkwood, 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 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.
Reach out to us now at 877-930-4015 or contact us online to arrange an appointment and find out more about how we can assist you achieve your financial goals in Kirkwood, MO.
