Fiduciary financial advisor in Lake St. Louis, MO. For Lake St. Louis, MO residents who lack the free time, expertise, or interest to manage 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 planning for retirement, seeking to increase your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Lake St. Louis, MO, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Lake St. Louis, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we don't truly trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital now at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a individual or entity that maintains a role of trust and duty when handling assets, monetary matters, or legal matters for someone else. Fiduciaries are legally and ethically bound to act 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 include:
- Trustees — Individuals or organizations tasked with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People appointed to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an responsibility to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals appointed by the court to make decisions on behalf of underage individuals or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Specialists who assist 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 engage with their clients or beneficiaries truthfully, with genuine intention, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must always act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must prioritize the beneficiary's interests above their own. They must steer clear of any conflicts of interest that could jeopardize their capacity to act exclusively in the beneficiary's best interests. All conflicts of interest need to be disclosed to the client and the advisor must still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty ensures that they strive to shield and grow the assets within their care while mitigating risks.
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 through a array of financial services and recommendations. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Lake St. Louis, 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. Securing and maintaining these certifications demand persistent education and a stringent moral standard.
To illustrate, 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 primary reason is that financial advisors can work under different regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires advice to be appropriate for clients but doesn't require 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 proportional charge for their services, making their compensation clear and limiting conflicts of interest. Other advisors usually 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 need 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 mandates that a fiduciary financial advisor go for investments that a sensible person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action plays within your portfolio
- Expected return 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 Lake St. Louis, MO
Opting to collaborate with a fiduciary financial advisor in Lake St. Louis, MO brings to the table an array of benefits that can significantly impact your financial health:
- Fiduciary financial advisers are required to act in your best interest and adhere to high standards
- Total disclosure of pertinent materials and facts and complete transparency regarding issues 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
- Handle investments on your behalf utilizing their expertise to create and handle a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a tailored approach
- Consistent monitoring and direction to ensure your financial plans and investments remain on track and that you can modify to any surprises the market or life throws your way
- Diminished risk with sensible and judicious investment choices made by thoroughly assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being cared for by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios alter
Choose Correct Capital as Your Lake St. Louis, MO Fiduciary Financial Advisor
Choosing a financial advisor in Lake St. Louis, MO with a fiduciary duty is vital to guarantee your long-term interests remain protected. 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 Lake St. Louis, MO residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary to lead 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 today at 877-930-4015 or contact us online to arrange an appointment and learn more about how we can aid you attain your financial goals in Lake St. Louis, MO.
