Fiduciary financial advisor in St. Charles County, MO. For St. Charles County, MO residents who lack the time, expertise, or interest to manage their investments and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're planning for retirement, looking to manage your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and honesty of your financial advisor matter greatly. By working with a fiduciary financial advisor in St. Charles County, MO, you'll gain a partner who has a legal and ethical responsibility 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 solution, investment, or plan that we don't truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest in mind, call Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or entity that holds a role of trust and responsibility when managing assets, monetary matters, or legal matters on behalf of another. Fiduciaries are legally and ethically obliged to act in the best interests of the person or entity they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or organizations tasked with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals appointed to handle the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an responsibility to emphasize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People appointed by the court to make decisions on behalf of people under 18 or persons who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Professionals 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries honestly, 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 at the forefront.
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 ought to steer clear of any conflicts of interest that could jeopardize their capacity to act solely in the beneficiary's best interests. All conflicts of interest need to be made known to the client and the advisor needs to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make well-informed and considered decisions when handling assets or making decisions on behalf of their client. This duty ensures that they do their best to protect and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in St. Charles County, MO?
Financial advisors help St. Charles County, MO individuals, families, and business owners attain their life goals via a array of financial services and recommendations. These services include investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Any person in St. Charles County, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications necessitate persistent education and a rigorous 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 is fiduciaries. The primary reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires investments to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation transparent and limiting conflicts of interest. Other advisors generally 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 are required 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 ahead of time, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase from an acceptable risk based on the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role 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 unique relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Charles County, MO
Deciding to work with a fiduciary financial advisor in St. Charles County, MO brings to the table an array of advantages that can significantly impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and maintain ethical standards
- Full disclosure of pertinent materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, enabling you to make the best decisions for you and your St. Charles County, MO family
- Make investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that matches your goals and strategies
- Thorough financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Consistent monitoring and direction to ensure your financial strategies and investments remain on track and that you can adapt to any curveballs the market or life throws your way
- Minimized risk with sensible and judicious investment choices taken by meticulously assessing the risk associated with each investment and tailoring your portfolio to match your risk tolerance
- Relief that your best interests are being looked after by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life scenarios modify
Choose Correct Capital as Your St. Charles County, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Charles County, MO with a fiduciary duty is crucial to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of St. Charles County, MO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills 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 through our website to schedule an appointment and find out more about how we can aid you attain your financial goals in St. Charles County, MO.
