Fiduciary financial advisor in Kirkwood, MO. For those in Kirkwood, MO who don't have the time, expertise, or interest to handle their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that partnership, and whether you're planning for retirement, seeking to increase 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 working with a fiduciary financial advisor in Kirkwood, MO, you'll have a confidante 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 propose a solution, investment, or approach that we don't sincerely trust 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 today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
Understanding Fiduciaries
A fiduciary is a person or entity that maintains a position of trust and duty when handling assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically bound to operate in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or institutions tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and oversee investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when dealing with their cases.
- Real estate agents — Professionals who assist clients in buying, 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any design to deceive or harm the interests of their beneficiaries. They must continually 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 put first the beneficiary's interests over their own. They should steer clear of any conflicts of interest that could compromise their ability to act exclusively in the client's best interests. Any conflicts of interest must be revealed to the client 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 employ the standard of care, skill, and diligence that a wise person would employ in similar circumstances. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to protect and grow the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Kirkwood, MO?
Financial advisors help Kirkwood, MO individuals, families, and business owners realize their life goals via a range of financial services and recommendations. These services consist of investment recommendations, 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 has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require persistent education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Kirkwood, MO Fiduciaries?
Not all financial advisor in Kirkwood, MO are fiduciaries. The key reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires recommendations to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with 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 can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a reasonable person would purchase considering 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 might apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you own
- Your needs for liquidity, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Kirkwood, MO
Deciding to work with a fiduciary financial advisor in Kirkwood, MO brings to the table an array of benefits that can profoundly impact your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold professional standards
- Complete disclosure of relevant materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Kirkwood, MO family
- Make investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that matches your goals and strategies
- Comprehensive financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments remain on track and that you can modify to any curveballs the market or life gives your way
- Reduced risk with sensible and responsible investment choices done by thoroughly assessing the risk tied to each investment and tailoring your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios alter
Hire Correct Capital as Your Kirkwood, MO Fiduciary Financial Advisor
Selecting a financial advisor in Kirkwood, MO with a fiduciary duty is essential to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Kirkwood, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential 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 set up an appointment and find out more about how we can assist you achieve your financial goals in Kirkwood, MO.
