Fiduciary financial advisor in Lemay, MO. For those in Lemay, MO who lack the free time, knowledge, or inclination to oversee their assets and retirement accounts themselves, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to manage your wealth, or saving for your kids' education, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Lemay, MO, you'll gain a confidante 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 will never recommend a product, investment, or approach that we do not genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, 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.
What Is a Fiduciary?
A fiduciary is a person or entity that maintains a position of confidence and responsibility when managing assets, finances, or legal affairs for another. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or entities tasked with handling and overseeing assets held in a trust for the gain 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 offer financial advice and handle investments for clients, with an obligation 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 — People chosen by the court to make decisions on behalf of minors or persons who are not able to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to act in the best interests of their clients when managing legal matters.
- 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 crucial elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any intention to deceive or damage the interests of their beneficiaries. They must consistently act honestly 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 above their own. They must steer clear of any conflicts of interest that could jeopardize their capacity to act exclusively in the client's best interests. Every conflicts of interest need to be made known to the client or beneficiary and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the degree of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make informed and considered decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to shield and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Lemay, MO?
Financial advisors help Lemay, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Lemay, 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 retaining these certifications necessitate continuous 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 Lemay, MO Fiduciaries?
Not all financial advisor in Lemay, MO is fiduciaries. The main reason is that financial advisors can function under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands recommendations to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Non-fiduciary 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 are required to abide by the Prudent-Person Rule, often 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 go for investments that a sensible person would purchase from an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own unique 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 strategy plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Lemay, MO
Opting to collaborate with a fiduciary financial advisor in Lemay, MO brings to the table an array of benefits that can significantly influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
- Total disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your Lemay, MO family
- Handle investments on your behalf by employing their expertise to create and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a personalized approach
- Ongoing monitoring and guidance to ensure your financial plans and investments stay aligned and that you can modify to any surprises the market or life throws your way
- Minimized risk with sensible and responsible investment choices done by meticulously assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Assurance that your best interests are being watched over by knowledgeable financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions alter
Choose Correct Capital as Your Lemay, MO Fiduciary Financial Advisor
Selecting a financial advisor in Lemay, MO with a fiduciary standard is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Lemay, MO residents and business owners equally. 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 now at 877-930-4015 or contact us online to arrange an appointment and discover how we can assist you achieve your financial goals in Lemay, MO.
