Fiduciary financial advisor in St. Charles County, MO. For St. Charles County, MO residents who lack the free time, skill, or interest to handle their investments and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is paramount in that partnership, and whether you're preparing for retirement, seeking to manage your wealth, or ensuring a stable financial future for your family, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in St. Charles County, MO, you'll have a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our St. Charles County, MO fiduciary financial advisors won't ever propose a product, investment, or strategy that we don't truly 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, contact us online, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or organization that holds a role of confidence and responsibility when handling assets, finances, or legal concerns for another person. Fiduciaries are legally and ethically obliged to operate in the best interests of the individual or entity they are representing, often known 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 — Individuals or organizations charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People chosen to handle the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an responsibility to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of underage individuals or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when managing legal matters.
- Real estate agents — Experts 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any intention to deceive or infringe upon 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 client, which means they must prioritize the beneficiary's interests above their own. They must avoid any conflicts of interest that might compromise their capability to act only in the beneficiary's best interests. All conflicts of interest need to be made known to the client or beneficiary and the advisor needs to still act with the beneficiary's interest above 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 apply in like circumstances. They must make informed and thoughtful decisions when managing assets or making decisions on behalf of their client. This duty ensures that they do their best to shield and grow the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Charles County, MO?
Financial advisors help St. Charles County, MO individuals, families, and business owners achieve their life goals via a variety of financial services and proposals. These services comprise investment recommendations, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in St. Charles County, MO can call themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate continuous education and a strict moral standard.
For instance, 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 St. Charles County, MO Fiduciaries?
Not all financial advisor in St. Charles County, MO are fiduciaries. The primary reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks depending on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which mandates investments to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation open and limiting conflicts of interest. Other advisors typically receive commissions or different kinds of compensation linked to product sales, which means they might 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, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable with 100% certainty, but stipulates that a fiduciary financial advisor purchase 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 is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state may 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 implications of investments
- The part that each investment or course of action 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 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 St. Charles County, MO
Opting to collaborate with a fiduciary financial advisor in St. Charles County, MO brings to the table an array of benefits that can significantly influence your financial health:
- Fiduciary financial advisers are required to act in your best interest and adhere to professional standards
- Total disclosure of essential materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your St. Charles County, MO family
- Manage investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to establish a tailored approach
- Consistent monitoring and direction 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
- Minimized risk with sensible and responsible investment choices made by carefully assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being cared for by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios alter
Choose Correct Capital as Your St. Charles County, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Charles County, MO with a fiduciary standard is vital 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 place at the forefront the financial success and peace of mind of St. Charles County, 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 needed to lead you on your financial journey. We offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Get in touch with us now at 877-930-4015 or contact us through our website to set up an appointment and discover how we can help you achieve your financial goals in St. Charles County, MO.
