Fiduciary financial advisor in O'Fallon, MO. For O'Fallon, MO residents who don't have the free time, expertise, or interest to oversee their investments and retirement accounts themselves, working with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, looking to grow 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 O'Fallon, 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 O'Fallon, MO fiduciary financial advisors won't ever suggest a solution, investment, or plan that we do not genuinely have faith in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest in mind, reach out to Correct Capital today at 877-930-4015, contact us online, or schedule an appointment with on of our advisors.
About Fiduciaries
A fiduciary is a individual or entity that maintains a position of confidence and duty when managing assets, monetary matters, or legal affairs on behalf of another. Fiduciaries are legally and ethically bound to operate 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 referred to as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — Individuals or institutions charged with handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People designated to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide 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 entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of underage individuals or individuals 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 dealing with their legal affairs.
- Real estate agents — Experts who aid 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 crucial elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any intention to deceive or infringe upon the interests of their beneficiaries. They must always 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 might compromise their capability to act exclusively in the beneficiary's best interests. Every conflicts of interest must be revealed to the client and the advisor needs 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 wise person would use in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client. This duty confirms that they work diligently to safeguard and increase the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in O'Fallon, MO?
Financial advisors help O'Fallon, MO individuals, families, and business owners attain 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.
Any person in O'Fallon, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications demand ongoing education and a rigorous moral standard.
For instance, 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 O'Fallon, MO Fiduciaries?
Not all financial advisor in O'Fallon, MO is fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which demands strategies to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation transparent and limiting conflicts of interest. Other advisors typically receive commissions or different kinds of compensation linked 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 must abide by the Prudent-Person Rule, often 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 stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was subsequently 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
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- Your needs for liquidity, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in O'Fallon, MO
Opting to collaborate with a fiduciary financial advisor in O'Fallon, MO offers an array of benefits that can profoundly influence your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to ethical 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 O'Fallon, MO family
- Make investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to devise a custom approach
- Continuous monitoring and guidance to ensure your financial tactics and investments continue to be in line and that you can modify to any surprises the market or life throws your way
- Minimized risk with wise and responsible investment choices done by carefully assessing the risk tied to each investment and shaping your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations alter
Hire Correct Capital as Your O'Fallon, MO Fiduciary Financial Advisor
Choosing a financial advisor in O'Fallon, 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 honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of O'Fallon, MO individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed 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.
Contact us today at 877-930-4015 or contact us online to set up an appointment and learn more about how we can aid you attain your financial goals in O'Fallon, MO.
