Fiduciary financial advisor in Richmond Heights, MO. For those in Richmond Heights, MO who lack the free time, knowledge, or interest to oversee their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, looking to increase your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Richmond Heights, MO, you'll have a ally who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Richmond Heights, MO fiduciary financial advisors won't ever suggest a solution, investment, or approach that we don't sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that maintains a role of trust and responsibility when overseeing assets, finances, or legal concerns for another. Fiduciaries are legally and ethically bound to work in the best interests of the individual 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.
Common examples of fiduciaries are:
- Trustees — People or organizations tasked with handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People chosen to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an obligation to prioritize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when handling their legal affairs.
- Real estate agents — Professionals who aid 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 are required to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any aim to deceive or harm the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests over their own. They must avoid any conflicts of interest that could impair their capacity to act exclusively in the beneficiary's best interests. All conflicts of interest need to be revealed to the client or beneficiary and the advisor must 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 prudent person would employ in similar circumstances. They must make informed and considered decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they work diligently to safeguard and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Richmond Heights, MO?
Financial advisors help Richmond Heights, MO individuals, families, and business owners achieve their life goals by means of a array of financial services and proposals. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any person in Richmond Heights, 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. Obtaining and retaining these certifications demand persistent education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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 Richmond Heights, MO Fiduciaries?
Not all financial advisor in Richmond Heights, MO is fiduciaries. The key reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function 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 manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation open and reducing 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 need to abide by the Prudent-Person Rule, commonly 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 mandates that a fiduciary financial advisor purchase investments that a sensible person would purchase based on an acceptable risk considering 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 might apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General 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 possess
- 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 Richmond Heights, MO
Choosing to partner with a fiduciary financial advisor in Richmond Heights, MO provides an array of advantages that can profoundly impact your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold high standards
- Full disclosure of pertinent materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Richmond Heights, MO family
- Manage investments on your behalf by employing their expertise to craft and handle a diversified portfolio that aligns with your goals and strategies
- Comprehensive financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a personalized approach
- Continuous monitoring and direction to ensure your financial plans and investments remain on track and that you can modify to any curveballs the market or life presents your way
- Minimized risk with prudent and accountable investment choices made by meticulously assessing the risk associated with each investment and tailoring your portfolio to match your risk tolerance
- Assurance that your best interests are being watched over by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions modify
Hire Correct Capital as Your Richmond Heights, MO Fiduciary Financial Advisor
Choosing a financial advisor in Richmond Heights, 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 prioritize the financial success and peace of mind of Richmond Heights, 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 knowledge and qualifications needed to assist you on your financial journey. We provide 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 reach your financial goals in Richmond Heights, MO.
