Fiduciary financial advisor in O'Fallon, MO. For O'Fallon, MO residents who lack the time, expertise, or interest to handle their investments and retirement accounts themselves, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to manage your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in O'Fallon, 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 O'Fallon, MO fiduciary financial advisors will never recommend a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that uphold the fiduciary standard and work 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.
What Is a Fiduciary?
A fiduciary is a person or organization that holds a position of trust and responsibility when overseeing assets, finances, or legal matters on behalf of someone else. Fiduciaries are legally and ethically bound to act in the best interests of the person 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.
Typical examples of fiduciaries include:
- Trustees — People or institutions responsible for handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People appointed to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People appointed by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Experts who assist clients in buying, 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 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 with integrity, with sincerity, and without any design to deceive or damage 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 ahead of their own. They should avoid any conflicts of interest that might impair their capacity to act exclusively in the beneficiary's best interests. Any conflicts of interest need to be made known 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 exercise the level of care, skill, and diligence that a wise person would use in the same or similar situations. They must make informed and considered decisions when managing assets or making decisions on behalf of their client. This duty confirms that they strive to safeguard and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in O'Fallon, MO?
Financial advisors help O'Fallon, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services comprise investment strategies, retirement consulting, tax planning, estate planning, portfolio management and others.
Any individual in O'Fallon, MO can give themselves the title of "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. 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 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 O'Fallon, MO Fiduciaries?
Not all financial advisor in O'Fallon, MO are fiduciaries. The primary reason lies in the fact that financial advisors can work under various regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires advice to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with 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, also 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 stipulates that a fiduciary financial advisor go for investments that a prudent person would purchase based on an acceptable risk in light of 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 unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other 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
Deciding to work with a fiduciary financial advisor in O'Fallon, MO brings to the table an array of benefits that can deeply influence your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Full disclosure of pertinent materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your O'Fallon, MO family
- Handle investments on your behalf utilizing their expertise to craft and oversee a diversified portfolio that aligns with your goals and strategies
- Thorough 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 direction to guarantee your financial tactics and investments remain on track and that you can adapt to any curveballs the market or life presents your way
- Minimized risk with wise and judicious investment choices taken by carefully assessing the risk tied to each investment and modifying your portfolio to match your risk tolerance
- Assurance that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions change
Choose Correct Capital as Your O'Fallon, MO Fiduciary Financial Advisor
Selecting a financial advisor in O'Fallon, MO with a fiduciary duty is essential to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased 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 alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to assist 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.
Reach out to us now at 877-930-4015 or contact us online to set up an appointment and find out more about how we can help you attain your financial goals in O'Fallon, MO.
