Fiduciary financial advisor in Oakland, MO. For Oakland, MO residents who lack the time, skill, or inclination to handle their assets and retirement accounts themselves, working with a financial advisor provides peace of mind. Trust is crucial in that partnership, and whether you're planning for retirement, looking to grow your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Oakland, MO, you'll have a partner who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Oakland, MO fiduciary financial advisors won't ever propose a product, investment, or approach that we do not sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a role of trust and responsibility when managing assets, finances, or legal matters on behalf of another person. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity 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 are:
- Trustees — Individuals or institutions tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and handle 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 assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or people who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to act in the best interests of their clients when handling their legal affairs.
- Real estate agents — Experts 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 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 with integrity, with genuine intention, and without any design to deceive or infringe upon the interests of their beneficiaries. They must continually act with integrity 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 ought to eschew any conflicts of interest that could jeopardize their ability to act exclusively in the beneficiary's best interests. Any conflicts of interest must be revealed to the client or beneficiary and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would use in similar circumstances. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client or beneficiary. This duty guarantees that they work diligently to shield and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Oakland, MO?
Financial advisors help Oakland, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment choices, retirement consulting, tax planning, estate planning, portfolio management and others.
Any person in Oakland, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications demand continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 Oakland, MO Fiduciaries?
Not all financial advisor in Oakland, MO are fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks relying on their business model. As an example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which demands investments to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation transparent and minimizing conflicts of interest. Other advisors typically receive commissions or other forms of compensation tied to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
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 know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase investments that a sensible person would purchase considering an acceptable risk considering the client's goals and investment objective.
The prudent person rule originates in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, mandates 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 distinctive 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
Deciding to work with a fiduciary financial advisor in Oakland, MO provides an array of benefits that can deeply impact your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold professional standards
- Total disclosure of pertinent materials and facts and complete transparency with 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 utilizing their expertise to develop and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to establish a personalized approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can modify to any surprises the market or life throws your way
- Minimized risk with prudent and responsible investment choices taken 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 looked after by skilled financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life situations alter
Hire Correct Capital as Your Oakland, MO Fiduciary Financial Advisor
Choosing a financial advisor in Oakland, MO with a fiduciary duty is vital to guarantee your money is being put to use how you need it to be. 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 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 expertise and qualifications necessary to lead you on your financial journey. We provide 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 set up an appointment and discover how we can aid you reach your financial goals in Oakland, MO.
