Fiduciary financial advisor in Manchester, MO. For those in Manchester, MO who lack the free time, expertise, or inclination to oversee their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is crucial in that partnership, and whether you're planning for retirement, seeking to manage 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 Manchester, MO, you'll gain a partner who is legally and ethically obliged 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 plan that we do not truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest in mind, call Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with a member of our advisor team.
A fiduciary is a person or entity that holds a role of trust and responsibility when managing assets, monetary matters, or legal matters on behalf of someone else. Fiduciaries are legally and ethically committed to work 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 known as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — Individuals or entities charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an responsibility to put first the client's financial goals.
- Corporate directors — Representatives 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 people under 18 or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when handling their legal affairs.
- 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any aim to mislead or damage 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 beneficiary, which means they must put first the beneficiary's interests over their own. They must eschew any conflicts of interest that might impair their ability to act solely in the client's best interests. All conflicts of interest must be disclosed to the client or beneficiary and the advisor has to still act with the 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 well-informed and considered decisions when handling assets or deciding on behalf of their client. This duty ensures that they do their best to safeguard and increase the assets under their care while reducing 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 consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in Manchester, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require persistent education and a strict moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 primary reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands recommendations to be fitting for clients but doesn't require the same duties of loyalty and care.
- 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 transparent and reducing conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation linked to product sales, which means they could 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 can't predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a reasonable person would purchase considering an acceptable risk in light of 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, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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 Manchester, MO
Deciding to work with a fiduciary financial advisor in Manchester, MO brings to the table an array of advantages that can deeply affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
- Total disclosure of relevant materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Manchester, MO family
- Manage investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
- Ongoing monitoring and advice to ensure your financial plans and investments continue to be in line and that you can adapt to any curveballs the market or life presents your way
- Diminished risk with wise and accountable investment choices done by thoroughly assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being cared for by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions change
Hire Correct Capital as Your Manchester, MO Fiduciary Financial Advisor
Choosing a financial advisor in Manchester, MO with a fiduciary standard is vital to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Manchester, 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 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.