Fiduciary financial advisor in Lemay, MO. For Lemay, MO residents who lack the free time, expertise, 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. That relationship is built on trust, and whether you're planning for retirement, looking to increase your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Lemay, 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 Lemay, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest as their top priority, call 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 holds a role of confidence and duty when handling assets, finances, or legal matters for someone else. Fiduciaries are legally and ethically obliged 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 known 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 — People designated to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an responsibility to prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when handling their cases.
- Real estate agents — Experts who assist 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 crucial aspects 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 honestly, with sincerity, and without any intention to deceive or infringe upon the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must prioritize the beneficiary's interests over their own. They must avoid any conflicts of interest that could compromise their ability to act exclusively in the client's best interests. Any conflicts of interest need to be made known to the client and the advisor has to still act with the client/beneficiary's interest above 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 use in the same or similar situations. They must make informed and careful decisions when handling assets or deciding on behalf of their client or beneficiary. This duty guarantees that they strive to safeguard and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Lemay, MO?
Financial advisors help Lemay, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment choices, retirement consulting, tax planning, estate planning, portfolio management and others.
Any individual in Lemay, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications require continuous 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 Lemay, MO Fiduciaries?
Not all financial advisor in Lemay, MO is fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires advice to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation linked to product sales, which means they might make recommendations that are more in their interest than yours.
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 cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a prudent person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own unique 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 part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Lemay, MO
Deciding to work with a fiduciary financial advisor in Lemay, MO brings to the table an array of benefits that can significantly influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain professional standards
- Full disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Lemay, MO family
- Manage investments on your behalf by employing their expertise to create and oversee a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Ongoing monitoring and guidance to ensure your financial plans and investments remain on track and that you can modify to any unexpected situations the market or life throws your way
- Minimized risk with wise and accountable investment choices done by thoroughly assessing the risk linked with each investment and tailoring your portfolio to match your risk tolerance
- Assurance that your best interests are being looked after by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions modify
Hire Correct Capital as Your Lemay, MO Fiduciary Financial Advisor
Choosing a financial advisor in Lemay, 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 place at the forefront the financial success and peace of mind of Lemay, MO residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to guide 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 schedule an appointment and learn more about how we can aid you reach your financial goals in Lemay, MO.
