Fiduciary financial advisor in Richmond Heights, MO. For those in Richmond Heights, MO who lack the time, knowledge, or inclination to handle their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is crucial in that relationship, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a safe financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Richmond Heights, MO, you'll have a confidante who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Richmond Heights, MO fiduciary financial advisors will never recommend a product, investment, or strategy that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a role of confidence and duty when overseeing assets, finances, or legal matters on behalf of someone else. Fiduciaries are legally and ethically committed to operate 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 include:
- Trustees — People or organizations charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People designated 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 work in the best interests of their clients when managing legal matters.
- Real estate agents — Professionals who aid 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 vital facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently 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 put first the beneficiary's interests above their own. They must eschew any conflicts of interest that might jeopardize their capacity to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be made known to the client and the advisor needs to still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a judicious person would apply in like circumstances. They must make well-informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty ensures that they do their best to protect and increase the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Richmond Heights, MO?
Financial advisors help Richmond Heights, MO individuals, families, and business owners attain their life goals by means of a array of financial services and proposals. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Richmond Heights, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications necessitate continuous education and a rigorous moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 are fiduciaries. The key 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 different regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which demands investments to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation open and limiting conflicts of interest. Other advisors usually receive commissions or different kinds of compensation linked to product sales, which means they could 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 cannot 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 sensible 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 specific laws. Missouri law, for example, mandates 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
- Other assets and resources you own
- Your needs for liquidity, income, and preservation of capital
- An asset's unique 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 Richmond Heights, MO
Opting to collaborate with a fiduciary financial advisor in Richmond Heights, MO offers an array of benefits that can significantly affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and adhere to professional standards
- Complete disclosure of relevant materials and facts and complete 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
- Handle investments on your behalf by leveraging their expertise to craft 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, evaluating all facets of your financial life to establish a custom approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can adapt to any surprises the market or life gives your way
- Minimized risk with wise and judicious investment choices taken by meticulously assessing the risk associated with each investment and shaping your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being cared for by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life scenarios 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 guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Richmond Heights, MO residents and business owners equally. 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 provide 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 online to set up an appointment and learn more about how we can aid you attain your financial goals in Richmond Heights, MO.
