Fiduciary financial advisor in Shrewsbury, MO. For those in Shrewsbury, MO who lack the time, skill, or inclination to handle their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that relationship, and whether you're preparing for retirement, seeking to grow your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Shrewsbury, MO, you'll have a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Shrewsbury, MO fiduciary financial advisors won't ever propose 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 in mind, reach out to Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Understanding Fiduciaries
A fiduciary is a individual or organization that occupies a role of trust and duty when overseeing assets, monetary matters, or legal matters on behalf of someone else. Fiduciaries are legally and ethically obliged to operate 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.
Typical examples of fiduciaries are:
- Trustees — People or entities responsible for managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an responsibility to prioritize 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 chosen by the court to make decisions on behalf of underage individuals or people who are incapable 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 aid clients in purchasing, 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 aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any aim to deceive or harm 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 beneficiary, which means they must put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might impair their capability to act only in the client's best interests. All conflicts of interest must be made known 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 judicious person would apply in the same or similar situations. They must make well-informed and careful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they do their best to shield and increase the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Shrewsbury, MO?
Financial advisors help Shrewsbury, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and more.
Any person in Shrewsbury, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to follow 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 Shrewsbury, MO Fiduciaries?
Not all financial advisor in Shrewsbury, MO are fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which mandates investments to be appropriate 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 typically charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Other advisors usually receive commissions or different kinds of compensation linked 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 can't predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential 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 have
- 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Shrewsbury, MO
Choosing to partner with a fiduciary financial advisor in Shrewsbury, MO offers an array of advantages that can significantly influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and adhere to ethical standards
- Total disclosure of essential materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Shrewsbury, MO family
- Handle investments on your behalf by employing their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to devise a personalized approach
- Continuous monitoring and direction to ensure your financial strategies and investments remain on track and that you can modify to any surprises the market or life throws your way
- Diminished risk with prudent and responsible investment choices taken by thoroughly assessing the risk tied to each investment and modifying your portfolio to match your risk tolerance
- Assurance that your best interests are being looked after by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios modify
Choose Correct Capital as Your Shrewsbury, MO Fiduciary Financial Advisor
Choosing a financial advisor in Shrewsbury, MO with a fiduciary standard is essential to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Shrewsbury, 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 guide 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.
Contact us today at 877-930-4015 or contact us through our website to schedule an appointment and learn more about how we can help you achieve your financial goals in Shrewsbury, MO.