Fiduciary financial advisor in Rock Hill, MO. For Rock Hill, MO residents who lack the free time, knowledge, or interest to manage their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is paramount in that relationship, and whether you're planning for retirement, looking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Rock Hill, MO, you'll gain a ally who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Rock Hill, MO fiduciary financial advisors won't ever suggest a solution, investment, or plan that we do not genuinely have faith in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital now at 877-930-4015, contact us online, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a person or organization that maintains a role of confidence and responsibility when managing assets, monetary matters, or legal concerns on behalf of someone else. Fiduciaries are legally and ethically bound to act in the best interests of the individual 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.
Frequent examples of fiduciaries are:
- Trustees — Individuals or organizations responsible for handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who offer financial advice and manage 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 bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Specialists who help 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 are obligated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any design to mislead or damage 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 beneficiary, which means they must put first the beneficiary's interests over their own. They must eschew any conflicts of interest that might impair their ability to act only in the client's best interests. All conflicts of interest must be made known 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 exercise the level of care, skill, and diligence that a wise person would use in comparable circumstances. They must make informed and considered decisions when managing assets or deciding on behalf of their client or beneficiary. This duty ensures that they work diligently to protect and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Rock Hill, MO?
Financial advisors help Rock Hill, MO individuals, families, and business owners realize their life goals through a array of financial services and recommendations. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Rock Hill, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications require continuous education and a strict 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 Rock Hill, MO Fiduciaries?
Not all financial advisor in Rock Hill, MO are fiduciaries. The main reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires advice to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation clear and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms of compensation tied to product sales, which means they may 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, often 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 considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, stipulates 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
- Other assets and resources you possess
- Your needs for readily available funds, 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Rock Hill, MO
Deciding to work with a fiduciary financial advisor in Rock Hill, MO offers an array of advantages that can significantly affect your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Full disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Rock Hill, MO family
- Manage investments on your behalf by leveraging their expertise to develop 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, considering all facets of your financial life to establish a custom approach
- Continuous monitoring and direction to guarantee your financial tactics and investments continue to be in line and that you can modify to any curveballs the market or life presents your way
- Reduced risk with wise and judicious investment choices taken by thoroughly assessing the risk associated with each investment and modifying your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being looked after by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life situations modify
Choose Correct Capital as Your Rock Hill, MO Fiduciary Financial Advisor
Selecting a financial advisor in Rock Hill, MO with a fiduciary standard is vital to ensure your long-term interests stay protected. 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 Rock Hill, 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.
Reach out to us now at 877-930-4015 or contact us through our website to arrange an appointment and find out more about how we can aid you reach your financial goals in Rock Hill, MO.
