Fiduciary financial advisor in Olivette, MO. For Olivette, MO residents who lack the time, skill, or inclination to manage their assets and retirement accounts on their own, partnering with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in Olivette, 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 Olivette, MO fiduciary financial advisors won't ever recommend a product, investment, or plan that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with on of our advisors.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Understanding Fiduciaries
A fiduciary is a individual or entity that occupies a role of trust and responsibility when managing assets, monetary matters, or legal matters for someone else. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or entities tasked with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to oversee the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an obligation to prioritize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals 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 obligated by a fiduciary duty to act in the best interests of their clients when managing their legal affairs.
- Real estate agents — Experts who assist clients in buying, 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 have an obligation to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with sincerity, and without any intention to mislead or damage the interests of their beneficiaries. They must consistently 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 prioritize the beneficiary's interests ahead of their own. They should eschew any conflicts of interest that might jeopardize their ability to act solely in the beneficiary's best interests. All conflicts of interest must be disclosed to the client or beneficiary and the advisor must 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 use in the same or similar situations. They must make informed and thoughtful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty confirms that they strive to safeguard and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Olivette, MO?
Financial advisors help Olivette, MO individuals, families, and business owners attain their life goals via a variety of financial services and suggestions. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Olivette, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications demand ongoing 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 Olivette, MO Fiduciaries?
Not all financial advisor in Olivette, MO are fiduciaries. The primary reason is that financial advisors can function under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands recommendations 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, making their compensation clear and reducing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation linked to product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors need to abide by the Prudent-Person Rule, often known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a reasonable person would purchase from 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 later 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:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach plays within your portfolio
- Expected profit 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Olivette, MO
Opting to collaborate with a fiduciary financial advisor in Olivette, MO offers an array of benefits that can significantly affect your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Total disclosure of essential materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Olivette, MO family
- Manage investments on your behalf utilizing their expertise to craft and manage a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to devise a custom approach
- Ongoing monitoring and guidance to ensure your financial strategies and investments remain on track and that you can adapt to any curveballs the market or life throws your way
- Diminished risk with prudent and responsible investment choices taken by carefully assessing the risk tied to each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being looked after by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios modify
Hire Correct Capital as Your Olivette, MO Fiduciary Financial Advisor
Selecting a financial advisor in Olivette, MO with a fiduciary duty 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 prioritize the financial success and peace of mind of Olivette, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications needed to assist 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.
Get in touch with us now at 877-930-4015 or contact us through our website to set up an appointment and discover how we can aid you achieve your financial goals in Olivette, MO.
