Fiduciary financial advisor in Sappington, MO. For Sappington, MO residents who don't have the time, knowledge, or interest to handle their investments and retirement accounts on their own, partnering with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're planning for retirement, seeking to manage your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Sappington, MO, you'll gain a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Sappington, MO fiduciary financial advisors will never suggest a product, investment, or plan that we do not genuinely believe in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital now 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 confidence and responsibility when overseeing assets, finances, or legal affairs for another person. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or organizations responsible for managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of underage individuals or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when dealing with 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 important elements 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 sincerity, and without any aim to mislead or harm the interests of their beneficiaries. They must continually act honestly 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 prioritize the beneficiary's interests over their own. They should avoid any conflicts of interest that might impair their capability to act only in the client's best interests. Any conflicts of interest need to be disclosed to the client or beneficiary and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a judicious person would employ in similar circumstances. They must make informed and careful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty ensures that they do their best to safeguard and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Sappington, MO?
Financial advisors help Sappington, MO individuals, families, and business owners realize their life goals by means of a variety of financial services and recommendations. These services include investment choices, retirement planning, tax planning, estate planning, asset management and more.
Any person in Sappington, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications require continuous education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Sappington, MO Fiduciaries?
Not all financial advisor in Sappington, MO is fiduciaries. The key reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands strategies to be appropriate for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation clear 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 must abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor go for investments that a sensible person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was subsequently unified with the Uniform Prudent Investor Act. Each state might 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 role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- Your needs for liquidity, income, and preservation of capital
- An asset's special 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 Sappington, MO
Deciding to work with a fiduciary financial advisor in Sappington, MO provides an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold professional standards
- Total disclosure of essential materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Sappington, MO family
- Make investments on your behalf by leveraging their expertise to craft and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a personalized approach
- Continuous monitoring and direction to guarantee your financial strategies and investments continue to be in line and that you can modify to any surprises the market or life presents your way
- Minimized risk with sensible and accountable investment choices made by meticulously assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios change
Hire Correct Capital as Your Sappington, MO Fiduciary Financial Advisor
Selecting a financial advisor in Sappington, 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 prioritize the financial success and peace of mind of Sappington, MO individuals 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 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.
Reach out to us today at 877-930-4015 or contact us online to set up an appointment and discover how we can assist you reach your financial goals in Sappington, MO.
