Fiduciary financial advisor in Shrewsbury, MO. For those in Shrewsbury, MO who don't have the time, expertise, or interest to handle their investments and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is vital in that relationship, and whether you're planning for retirement, seeking to grow your wealth, or ensuring a stable 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 Shrewsbury, MO, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Shrewsbury, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we do not genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a position of trust and duty when overseeing assets, monetary matters, or legal matters for someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the person 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.
Common examples of fiduciaries include:
- Trustees — Individuals or entities responsible for managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to oversee 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 emphasize the client's financial goals.
- 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 people under 18 or individuals who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to act in the best interests of their clients when dealing with legal matters.
- Real estate agents — Professionals who help 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 crucial 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 intention to deceive or harm the interests of their beneficiaries. They must always 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 put first the beneficiary's interests above their own. They should steer clear of any conflicts of interest that could compromise their capacity to act solely in the client's best interests. Any conflicts of interest must be revealed to the client and the advisor has to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the degree of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make informed and careful decisions when managing assets or deciding 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 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 strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Shrewsbury, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor must possess accreditations and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications necessitate continuous education and a strict 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 function under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which demands recommendations to be appropriate for clients but doesn't require 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, rendering their compensation transparent and minimizing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation associated with 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 purchase investments that a reasonable 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 subsequently unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you possess
- Your needs for readily available funds, income, and preservation of capital
- An asset's distinctive 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
Deciding to work with a fiduciary financial advisor in Shrewsbury, MO brings to the table an array of benefits that can significantly impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Shrewsbury, MO family
- Handle investments on your behalf utilizing their expertise to develop and manage a diversified portfolio that aligns with your goals and strategies
- Thorough 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 guidance to ensure your financial tactics and investments stay aligned and that you can modify to any surprises the market or life throws your way
- Reduced risk with prudent and judicious investment choices done by thoroughly assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Relief that your best interests are being watched over by experienced financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life situations change
Choose Correct Capital as Your Shrewsbury, MO Fiduciary Financial Advisor
Selecting a financial advisor in Shrewsbury, MO with a fiduciary duty is vital to ensure 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 Shrewsbury, MO residents 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.
Get in touch with us today at 877-930-4015 or contact us online to arrange an appointment and find out more about how we can aid you attain your financial goals in Shrewsbury, MO.
