Fiduciary financial advisor in Olivette, MO. For those in Olivette, MO who lack the free time, expertise, or inclination to oversee their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Olivette, MO, you'll gain a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Olivette, MO fiduciary financial advisors won't ever suggest a solution, investment, or strategy that we don't truly trust in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or organization that occupies a role of confidence and duty when handling assets, monetary matters, or legal affairs on behalf of another. Fiduciaries are legally and ethically bound to work in the best interests of the individual or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or organizations responsible for handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an obligation to put first the client's financial well-being.
- Corporate directors — Individuals 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 minors or individuals who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when managing their cases.
- Real estate agents — Professionals 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 aspects 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 intention to deceive or damage the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They should avoid any conflicts of interest that might jeopardize their capability to act exclusively in the client's best interests. Any conflicts of interest need to be made known to the client and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a wise person would employ in similar circumstances. They must make well-informed and careful decisions when handling assets or making decisions on behalf of their client. This duty ensures that they work diligently to protect and grow the assets within their care while minimizing 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 array of financial services and proposals. These services comprise investment strategies, retirement consulting, tax planning, estate planning, asset management and more.
Any individual in Olivette, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require continuous education and a stringent moral standard.
To illustrate, 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 Olivette, MO Fiduciaries?
Not all financial advisor in Olivette, MO are fiduciaries. The primary reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which mandates advice to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation transparent and minimizing conflicts of interest. Other advisors usually receive commissions or other forms 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 ahead of time, but mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase considering an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you have
- Your needs for liquidity, income, and preservation of capital
- An asset's distinctive 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 Olivette, MO
Opting to collaborate with a fiduciary financial advisor in Olivette, MO offers an array of benefits that can significantly influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to professional standards
- Total disclosure of essential materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Olivette, MO family
- Make investments on your behalf utilizing their expertise to create and handle a diversified portfolio that matches your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a tailored approach
- Consistent monitoring and advice to guarantee your financial plans and investments continue to be in line and that you can modify to any unexpected situations the market or life gives your way
- Diminished risk with prudent and judicious investment choices made by carefully assessing the risk associated with each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by skilled financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios alter
Hire Correct Capital as Your Olivette, MO Fiduciary Financial Advisor
Choosing a financial advisor in Olivette, 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 proud to be fiduciary financial advisors who place at the forefront 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 knowledge 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.
Contact us now at 877-930-4015 or contact us online to schedule an appointment and discover how we can aid you achieve your financial goals in Olivette, MO.
