Fiduciary Financial Advisor in Lake St. Louis, MO

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Fiduciary financial advisor in Lake St. Louis, MO. For Lake St. Louis, MO residents who lack the free time, skill, or inclination to handle their investments and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're planning for retirement, looking 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 working with a fiduciary financial advisor in Lake St. Louis, MO, you'll have a confidante who is legally and ethically obliged to put your own best interests first.

At Correct Capital Wealth Management, our Lake St. Louis, MO fiduciary financial advisors will never propose a product, investment, or plan that we don't sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and work 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 a member of our advisor team.

Understanding Fiduciaries

A fiduciary is a person or organization that maintains a role of trust and responsibility when handling assets, monetary matters, or legal affairs on behalf of another person. Fiduciaries are legally and ethically bound to work in the best interests of the individual or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.

Typical examples of fiduciaries are:

  • Trustees — People or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
  • Executors — Individuals appointed to handle the estate and assets of a deceased person based on their will or the law.
  • Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to put first the client's financial well-being.
  • Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
  • Guardians — People appointed by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
  • Attorneys — Legal professionals who are committed by a fiduciary duty to act 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 required 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 facets to understanding fiduciary duty:

1. Good Faith

Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with sincerity, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must always 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/beneficiary, which means they must put first the beneficiary's interests above their own. They should avoid any conflicts of interest that might compromise their ability to act only in the client's best interests. All 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 above their own.

3. Duty of Care

Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a wise person would apply in comparable circumstances. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty ensures that they do their best to safeguard and increase the assets within their care while minimizing risks.

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What Is a Fiduciary Financial Advisor in Lake St. Louis, MO?

Financial advisors help Lake St. Louis, MO individuals, families, and business owners achieve their life goals via a variety of financial services and proposals. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and more.

Any person in Lake St. Louis, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate continuous education and a strict moral standard.

For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Lake St. Louis, MO Fiduciaries?

Not all financial advisor in Lake St. Louis, MO are fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:

  • Regulatory framework — Financial advisors might be subject to distinct regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
  • Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds of compensation linked 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 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 ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a prudent person would purchase based on an acceptable risk considering the client's goals and investment objective.

The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, stipulates 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 return and appreciation of capital
  • Other 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 estimated duration of your relationship with the fiduciary financial advisor

Benefits of Working with a Fiduciary Financial Advisor in Lake St. Louis, MO

Deciding to work with a fiduciary financial advisor in Lake St. Louis, MO offers an array of benefits that can profoundly influence your financial health:

  • Fiduciary financial advisers must act in your best interest and uphold professional standards
  • Complete disclosure of relevant materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Lake St. Louis, MO family
  • Manage investments on your behalf by employing their expertise to craft and oversee a diversified portfolio that aligns with your financial goals and risk tolerance
  • Thorough financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
  • Continuous monitoring and advice to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
  • Diminished risk with prudent and responsible investment choices made by meticulously assessing the risk linked with each investment and modifying your portfolio to align with your risk tolerance
  • Assurance that your best interests are being watched over by experienced financial professionals
  • A lasting relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life scenarios change
Fiduciary Financial Advisor in Lake St. Louis, MO | Retirement Consultant | Small Business Financial Advisor | Wealth management near me

Hire Correct Capital as Your Lake St. Louis, MO Fiduciary Financial Advisor

Selecting a financial advisor in Lake St. Louis, MO with a fiduciary standard is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who prioritize the financial success and peace of mind of Lake St. Louis, MO individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications necessary to guide 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 today at 877-930-4015 or contact us through our website to arrange an appointment and learn more about how we can assist you reach your financial goals in Lake St. Louis, MO.

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