Fiduciary financial advisor in Oakville, MO. For those in Oakville, MO who lack the time, expertise, or inclination to handle their assets and retirement accounts themselves, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Oakville, MO, you'll have a ally 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 recommend a solution, investment, or plan that we don't truly trust in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital now at 877-930-4015, contact us online, or schedule an appointment with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that holds a role of confidence and duty when overseeing assets, monetary matters, or legal affairs for another. 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 tasked with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and oversee investments for clients, with an responsibility to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are obligated 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 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 vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries honestly, with sincerity, and without any design to deceive or damage the interests of their beneficiaries. They must consistently 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 beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They must avoid any conflicts of interest that could impair their ability to act only in the client's best interests. Every conflicts of interest need to be made known to the client and the advisor needs to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make well-informed and careful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they work diligently to protect and grow the assets within 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 by means of a variety of financial services and recommendations. These services comprise investment choices, retirement consulting, tax planning, estate planning, asset management and more.
Any person in Oakville, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require continuous education and a strict 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 Oakville, MO Fiduciaries?
Not all financial advisor in Oakville, MO is fiduciaries. The primary reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which mandates recommendations to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation tied to product sales, which means they might 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, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor select investments that a prudent person would purchase considering an acceptable risk based on 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 particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall 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
- Additional assets and resources you possess
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Oakville, MO
Choosing to partner with a fiduciary financial advisor in Oakville, MO brings to the table an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and uphold high standards
- Complete disclosure of essential materials and facts and complete transparency concerning issues 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 utilizing their expertise to develop and oversee a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Consistent monitoring and direction to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life gives your way
- Reduced risk with sensible and judicious investment choices made by carefully assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations alter
Choose Correct Capital as Your Oakville, MO Fiduciary Financial Advisor
Choosing a financial advisor in Oakville, MO with a fiduciary standard is crucial 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 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 skills and qualifications essential to guide 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 today at 877-930-4015 or contact us through our website to arrange an appointment and learn more about how we can assist you achieve your financial goals in Oakville, MO.
