Fiduciary financial advisor in Rock Hill, MO. For Rock Hill, MO residents who lack the time, expertise, or inclination to handle their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a stable financial future for your family, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Rock Hill, 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 Rock Hill, MO fiduciary financial advisors won't ever propose a product, investment, or approach that we do not sincerely trust in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, call Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or organization that holds a role of trust and duty when managing assets, monetary matters, or legal matters on behalf of another person. Fiduciaries are legally and ethically bound to work 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 referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions tasked with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People chosen to handle the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to put first the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of minors or persons 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 managing legal matters.
- Real estate agents — Specialists who assist 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 important aspects 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 with integrity, with genuine intention, and without any aim to mislead or damage the interests of their beneficiaries. They must consistently act honestly 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 ought to avoid any conflicts of interest that could impair their ability to act solely in the client's best interests. Every conflicts of interest need to be disclosed to the client and the advisor must still act with the client/beneficiary's interest over 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 employ in comparable circumstances. They must make informed and thoughtful decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they work diligently to shield and increase 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 achieve their life goals by means of a array of financial services and proposals. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any person in Rock Hill, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must possess qualifications and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications require continuous education and a strict moral standard.
As an example, 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 is fiduciaries. The main reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires investments to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors generally 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 can't predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase based on 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 can apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach 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 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
Choosing to partner with a fiduciary financial advisor in Rock Hill, MO brings to the table an array of advantages that can profoundly affect your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Total disclosure of relevant materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Rock Hill, MO family
- Make investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that matches your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to create a tailored approach
- Continuous monitoring and guidance to ensure your financial tactics and investments stay aligned and that you can adapt to any unexpected situations the market or life gives your way
- Minimized risk with wise and responsible investment choices taken by carefully assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by skilled financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios change
Choose Correct Capital as Your Rock Hill, MO Fiduciary Financial Advisor
Choosing a financial advisor in Rock Hill, MO with a fiduciary duty is essential to ensure 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 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 skills and qualifications necessary to assist you on your financial journey. We give 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 set up an appointment and learn more about how we can aid you attain your financial goals in Rock Hill, MO.
