Fiduciary financial advisor in Oakville, MO. For those in Oakville, MO who don't have the time, skill, or inclination to oversee their investments and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is crucial in that relationship, and whether you're preparing for retirement, looking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Oakville, 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 Oakville, MO fiduciary financial advisors will never suggest a solution, investment, or strategy that we don't truly believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest at heart, call Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with on of our advisors.
Understanding Fiduciaries
A fiduciary is a individual or entity that holds a position of confidence and responsibility when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or organizations charged with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated 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 oversee investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of people under 18 or people who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with legal matters.
- Real estate agents — Experts who assist clients in purchasing, 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 important facets 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 with integrity, with genuine intention, and without any aim to deceive or damage the interests of their beneficiaries. They must continually 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 put first the beneficiary's interests over their own. They ought to avoid any conflicts of interest that might jeopardize their ability to act solely in the beneficiary's best interests. Every conflicts of interest need to be disclosed to the client and the advisor has to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard 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 guarantees that they work diligently to shield and grow the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Oakville, MO?
Financial advisors help Oakville, MO individuals, families, and business owners realize their life goals via a variety of financial services and recommendations. These services include investment strategies, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Oakville, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications demand continuous education and a rigorous moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Oakville, MO Fiduciaries?
Not all financial advisor in Oakville, MO is fiduciaries. The key reason is that financial advisors can function under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which mandates advice to be suitable for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation open and minimizing conflicts of interest. Other advisors usually receive commissions or different kinds of compensation linked to product sales, which means they may make recommendations that are more in their interest than yours.
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 with 100% certainty, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase from 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 can apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you possess
- Your needs for readily available funds, 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 Oakville, MO
Deciding to work with a fiduciary financial advisor in Oakville, MO offers an array of benefits that can significantly impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Complete disclosure of relevant materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Oakville, MO family
- Manage investments on your behalf by employing their expertise to craft and oversee a diversified portfolio that matches your financial goals and risk tolerance
- Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a personalized approach
- Ongoing monitoring and guidance to ensure your financial tactics and investments continue to be in line and that you can adapt to any unexpected situations the market or life gives your way
- Reduced risk with prudent and responsible investment choices made by thoroughly assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by skilled financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life situations modify
Hire Correct Capital as Your Oakville, MO Fiduciary Financial Advisor
Selecting a financial advisor in Oakville, 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 proud to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Oakville, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to lead 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.
Reach out to us now at 877-930-4015 or contact us through our website to schedule an appointment and find out more about how we can assist you reach your financial goals in Oakville, MO.
