Fiduciary financial advisor in Ladue, MO. For those in Ladue, MO who don't have the free time, skill, or inclination to handle their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that relationship, and whether you're planning for retirement, seeking to grow 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 choosing a fiduciary financial advisor in Ladue, MO, you'll have a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Ladue, MO fiduciary financial advisors will never recommend a product, investment, or approach that we do not sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a individual or organization that occupies a role of trust and duty when managing assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or organization 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.
Common examples of fiduciaries include:
- Trustees — Individuals or institutions tasked with managing and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an obligation to put first the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals chosen by the court to make decisions on behalf of people under 18 or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when handling their cases.
- Real estate agents — Specialists who help 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any design to deceive or harm the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests ahead of their own. They should steer clear of any conflicts of interest that could jeopardize their ability to act solely in the client's best interests. Any conflicts of interest need to be revealed to the client or beneficiary and the advisor has 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 standard of care, skill, and diligence that a judicious person would use in comparable circumstances. They must make well-informed and thoughtful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they work diligently to protect and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Ladue, MO?
Financial advisors help Ladue, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Ladue, 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. Obtaining and keeping these certifications require continuous education and a stringent 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 Ladue, MO Fiduciaries?
Not all financial advisor in Ladue, MO is fiduciaries. The main reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which requires strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors are required to 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 determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor select investments that a reasonable person would purchase from an acceptable risk based on 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 can apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Ladue, MO
Opting to collaborate with a fiduciary financial advisor in Ladue, MO brings to the table an array of benefits that can profoundly influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Complete disclosure of pertinent materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Ladue, MO family
- Make investments on your behalf by employing their expertise to develop and manage a diversified portfolio that matches your goals and strategies
- Complete financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a custom approach
- Continuous monitoring and advice to ensure your financial strategies and investments stay aligned and that you can modify to any surprises the market or life presents your way
- Reduced risk with wise and judicious investment choices taken by meticulously assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life situations modify
Choose Correct Capital as Your Ladue, MO Fiduciary Financial Advisor
Selecting a financial advisor in Ladue, 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 honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Ladue, MO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed to lead you on your financial journey. We provide 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 through our website to schedule an appointment and learn more about how we can aid you achieve your financial goals in Ladue, MO.
