Fiduciary financial advisor in Oakland, MO. For Oakland, MO residents who lack the time, expertise, or inclination 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 manage your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Oakland, 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 Oakland, MO fiduciary financial advisors will never suggest a product, investment, or approach that we don't truly believe in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a position of trust and responsibility when managing assets, finances, or legal matters on behalf of another. Fiduciaries are legally and ethically committed to act in the best interests of the individual or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — People or institutions charged with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to manage the estate and assets of a decedent based on 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 — 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 underage individuals or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Professionals who help clients in buying, 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any design to deceive or harm the interests of their beneficiaries. They must consistently act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests over their own. They should eschew any conflicts of interest that might compromise their capacity to act exclusively in the client's best interests. Any conflicts of interest need to be disclosed to the client or beneficiary and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty ensures that they work diligently to safeguard and increase the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Oakland, MO?
Financial advisors help Oakland, MO individuals, families, and business owners achieve their life goals by means of a range of financial services and proposals. These services consist of investment recommendations, retirement planning, tax planning, estate planning, asset management and others.
Any person in Oakland, MO can label themselves a "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. Securing and keeping these certifications necessitate continuous education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Oakland, MO Fiduciaries?
Not all financial advisor in Oakland, MO is fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands advice to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can influence 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 different kinds of compensation tied to product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, also 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 stipulates that a fiduciary financial advisor purchase investments that a sensible person would purchase based on an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own specific 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 approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you own
- Your needs for readily available funds, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Oakland, MO
Opting to collaborate with a fiduciary financial advisor in Oakland, MO provides an array of benefits that can deeply impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and adhere to high standards
- Total disclosure of relevant materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Oakland, MO family
- Manage investments on your behalf by leveraging their expertise to craft and handle a diversified portfolio that aligns with 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 devise a custom approach
- Ongoing monitoring and advice to guarantee your financial tactics and investments stay aligned and that you can modify to any unexpected situations the market or life presents your way
- Diminished risk with wise and judicious investment choices done by meticulously assessing the risk linked with each investment and modifying your portfolio to align with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life conditions alter
Choose Correct Capital as Your Oakland, MO Fiduciary Financial Advisor
Selecting a financial advisor in Oakland, MO with a fiduciary duty is vital to ensure your long-term interests remain protected. 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 Oakland, MO individuals 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 needed to assist 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 now at 877-930-4015 or contact us online to set up an appointment and discover how we can aid you attain your financial goals in Oakland, MO.
