Fiduciary financial advisor in Springfield, MO. For those in Springfield, MO who lack the free time, knowledge, or inclination to oversee their investments and retirement accounts on their own, working with a financial advisor offers peace of mind. Trust is paramount in that relationship, and whether you're preparing for retirement, seeking to increase your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Springfield, MO, you'll have a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Springfield, MO fiduciary financial advisors won't ever suggest a solution, investment, or plan that we don't sincerely have faith in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest in mind, reach out to Correct Capital now at 314-930-401(k), contact us online, or schedule a meeting with a member of our advisor team.
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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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What Is a Fiduciary?
A fiduciary is a person or organization that maintains a role of trust and duty when overseeing assets, finances, or legal concerns on behalf of another. Fiduciaries are legally and ethically committed to work in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — People or institutions charged with 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 based on their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an responsibility to emphasize the client's financial goals.
- 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 — Individuals chosen by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to act in the best interests of their clients when dealing with legal matters.
- Real estate agents — Experts 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 aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with sincerity, and without any design to deceive or harm 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 client, which means they must prioritize the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might impair their capability to act exclusively in the client's best interests. All conflicts of interest must be revealed to the client or beneficiary and the advisor must still act with the 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 employ in the same or similar situations. They must make informed and considered decisions when handling assets or making decisions on behalf of their client. This duty guarantees that they work diligently to safeguard and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Springfield, MO?
Financial advisors help Springfield, MO individuals, families, and business owners attain their life goals via a variety of financial services and suggestions. These services consist of investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Any person in Springfield, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor must be registered with the SEC, and is legally required to abide by fiduciary duty, and as a result, must put clients’ interests ahead of their own. They need to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications demand continuous education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Springfield, MO Fiduciaries?
Not all financial advisor in Springfield, MO is fiduciaries. The primary reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) operate under the suitability standard, which mandates investments to be fitting for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation open and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation tied 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, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase from an acceptable risk in light of 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 can apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The role that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other 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
Fiduciary Duty vs. Suitability Standard: What’s the Difference?
Advisors who operate under the “suitability standard” are only obligated to suggest investment products or products that align with your goals, while advisors with a fiduciary duty must act in your best interest. Here are some key differences:
Fiduciary Duty
- Ethical Obligation: Fiduciary financial advisors are legally and morally obligated to operate in their clients' best interests at all times.
- Client's Best Interest: Financial advisors must focus on the client's financial health over their own profit.
- Full Disclosure: They must reveal all conflicts of interest, ensure transparency, and provide the highest level of care in their recommendations and actions.
- Governance: Governed by the Investment Advisers Act of 1940, which requires that investment advisors have a fiduciary duty to their clients.
- ExamplesInstances: Registered Investment Advisors (RIAs) and CERTIFIED FINANCIAL PLANNER™ professionals.
Suitability Standard
- Appropriateness: Advisors only need to ensure that their suggestions are appropriate for the client’s financial requirements and objectives at the time of the transaction.
- Reduced Care Standard: Financial advisors can consider their own interests as long as the suggestions are appropriate.
- Potential Conflicts: Advisors may receive commissions from the sale of financial products, which can create conflicts of interest.
- Governance: Regulated by the Financial Industry Regulatory Authority (FINRA), which requires a “reasonable basis” that an investment is suitable for the client.
- Examples: Some broker-dealers and insurance agents.
Best Interest vs. Reasonable Basis
The Investment Advisers Act of 1940 mandates that fiduciary advisors must operate in their clients' "best interest," while FINRA Rule 2111 requires that dealer-brokers and other non-fiduciaries only have a "reasonable basis" for their suggestions. Here's a breakdown of what those terms mean in relation to managing a client's investments and financial planning:
| Best Interest | Reasonable Belief | |
|---|---|---|
| Definition | Demands financial advisors to act in the client's most favorable financial interest. | Requires advisors to suggest appropriate investment products or strategies based on provided information. |
| Standard of Care | Superior level of care making sure every action aligns with the client's best outcome. | Ensures recommendations are suitable and make sense for the client's circumstances. |
| Client-Centric Approach | Advisors prioritize client's goals, needs, and preferences above their own. | Advisors base recommendations on the client's disclosed financial situation, objectives, and risk tolerance. |
| Transparency | Full disclosure of potential conflicts of interest is necessary. | Looser disclosure requirements, provided the recommendation is proper. |
| Due Diligence | Suggestions based on a comprehensive evaluation of the client's financial situation. | Suggestions based on adequate research and analysis. |
| Ongoing Duty | Unceasing duty to act in the client's best interest, requiring regular reviews and updates. | Emphasizes the suitability of advice at the time of the recommendation, with less focus on ongoing oversight. |
| Conflict of Interest | Must reveal and handle conflicts transparently, ensuring clients are aware of potential biases. | Conflicts are more loosely governed, as long as the suggestion remains appropriate. |
| Long-Term Commitment | Advisors have a continuous obligation to monitor and adjust the client's financial plan. | Regular reviews are advised, but the focus is on the suitability of initial recommendations. |
Benefits of Working with a Fiduciary Financial Advisor in Springfield, MO
Deciding to work with a fiduciary financial advisor in Springfield, MO offers an array of benefits that can deeply affect your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Complete disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Springfield, MO family
- Make investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that matches your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to create a personalized approach
- Ongoing monitoring and guidance to guarantee your financial plans 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 accountable investment choices made by carefully assessing the risk associated with each investment and shaping your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being cared for by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life scenarios alter
What Financial Planning Services Do Fiduciary Advisors Offer?
At Correct Capital Wealth Management, our holistic financial planning services are crafted to offer you with a holistic approach to reaching your financial goals. Our team of fiduciary financial advisors in St. Louis functions diligently to grasp your unique financial situation and adapt strategies that align with your life aspirations.
Customized Financial Roadmap
We begin by undertaking a detailed analysis of your current financial status, including income, expenses, assets, and liabilities. This helps us develop a personalized financial roadmap that caters to your short-term needs and long-term objectives.
Financial Portfolio Management
We develop personalized strategies to diversify your portfolio, balancing your risk tolerance with your time horizon. Our team continuously monitors and adjusts your investments to align with your financial goals, making sure that your portfolio remains robust and adaptable as market conditions change.
Retirement Planning
Planning for retirement is a key element of our comprehensive financial planning. We assist you in navigating the complexities of retirement accounts, social security benefits, and income strategies to ensure you can retire with ease and securely.
Tax Planning
Effective tax planning helps keep your hard-earned money out of Uncle Sam's hands. Our advisors are expert in tax laws and strategies that can decrease your tax liability and boost your overall financial health.
Estate Planning
We also offer educated guidance on estate planning to help you safeguarding your legacy. From wills and trusts to estate tax strategies, we ensure your assets are passed on according to your wishes while reducing tax burdens.
Ongoing Monitoring and Adjustments
Financial planning is not a single event but a ongoing process. We offer ongoing monitoring and routine reviews to adapt your financial plan to any changes in your life circumstances or economic environment.
Client-Focused Strategy
At Correct Capital, our approach is deeply client-centric. We take pride in building enduring relationships based on trust, transparency, and personalized service. Your financial well-being is our highest priority, and we are committed to helping you achieve your financial goals with integrity and excellence.
Other services we offer in Springfield, MO include:
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
Choose Correct Capital as Your Springfield, MO Fiduciary Financial Advisor
Selecting a financial advisor in Springfield, MO with a fiduciary standard is essential to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Springfield, 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 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.
Reach out to us now at 314-930-401(k) or contact us online to arrange an appointment and learn more about how we can help you attain your financial goals in Springfield, MO.
