Fiduciary financial advisor in Manchester, MO. For Manchester, MO residents who don't have the time, skill, or interest to manage their assets and retirement accounts themselves, 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, seeking to increase 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 Manchester, 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 Manchester, MO fiduciary financial advisors will never suggest a solution, investment, or strategy that we do not sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that occupies a role of confidence and duty when overseeing assets, monetary matters, or legal affairs for another person. Fiduciaries are legally and ethically committed to work in the best interests of the person or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions tasked with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People chosen 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 duty to emphasize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals designated by the court to make decisions on behalf of people under 18 or individuals who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with sincerity, and without any design to deceive or infringe upon the interests of their beneficiaries. They must continually 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, which means they must put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might jeopardize their ability to act only in the client's best interests. All conflicts of interest must be disclosed to the client or beneficiary and the advisor needs 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 level of care, skill, and diligence that a wise person would employ in similar circumstances. They must make well-informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty guarantees that they do their best to protect and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Manchester, MO?
Financial advisors help Manchester, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, asset management and others.
Any individual in Manchester, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications necessitate ongoing education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to follow 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 Manchester, MO Fiduciaries?
Not all financial advisor in Manchester, MO is fiduciaries. The key reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which requires recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Other advisors generally receive commissions or different kinds 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor purchase investments that a reasonable 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 might apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach 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 special 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 Manchester, MO
Opting to collaborate with a fiduciary financial advisor in Manchester, MO offers an array of advantages that can deeply affect your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Complete disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Manchester, MO family
- Make investments on your behalf by employing their expertise to craft and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a custom approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can adjust to any curveballs the market or life throws your way
- Diminished risk with wise and judicious investment choices made by thoroughly 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 prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations modify
Choose Correct Capital as Your Manchester, MO Fiduciary Financial Advisor
Selecting a financial advisor in Manchester, 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 prioritize the financial success and peace of mind of Manchester, 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 skills and qualifications needed 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 through our website to arrange an appointment and find out more about how we can assist you achieve your financial goals in Manchester, MO.
