Fiduciary financial advisor in St. Charles, MO. For St. Charles, MO residents who lack the free time, knowledge, or inclination to manage their assets and retirement accounts themselves, working 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, looking to grow your wealth, or ensuring a secure 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 St. Charles, MO, you'll gain a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our St. Charles, MO fiduciary financial advisors will never suggest a product, investment, or plan that we do not sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule a meeting 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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What Is a Fiduciary?
A fiduciary is a person or entity that holds a position of trust and responsibility when managing assets, finances, or legal matters on behalf of another. Fiduciaries are legally and ethically committed to act 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.
Frequent examples of fiduciaries are:
- Trustees — Individuals or entities charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to oversee the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an obligation to emphasize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals designated 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 — 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or harm the interests of their beneficiaries. They must continually 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 put first the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might jeopardize their capacity to act exclusively in the beneficiary's best interests. All conflicts of interest must be made known to the client or beneficiary and the advisor must still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a judicious person would employ in like circumstances. They must make well-informed and careful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they do their best to safeguard and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in St. Charles, MO?
Financial advisors help St. Charles, MO individuals, families, and business owners achieve their life goals by means of a array of financial services and proposals. These services comprise investment strategies, retirement consulting, tax planning, estate planning, portfolio management and others.
Any individual in St. Charles, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor needs accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and maintaining these certifications demand continuous 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, MO Fiduciaries?
Not all financial advisor in St. Charles, MO is fiduciaries. The key reason is that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands 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. Non-fiduciary advisors typically receive commissions or different kinds of compensation linked to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, often 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 select investments that a reasonable person would purchase from an acceptable risk considering 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 specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, 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, MO
Opting to collaborate with a fiduciary financial advisor in St. Charles, MO provides an array of benefits that can deeply affect your financial health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Complete disclosure of essential materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your St. Charles, MO family
- Make investments on your behalf by employing their expertise to create and handle a diversified portfolio that resonates with your goals and strategies
- 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
- Continuous monitoring and direction to ensure your financial plans and investments stay aligned and that you can adapt to any unexpected situations the market or life throws your way
- Diminished risk with sensible and judicious investment choices taken by thoroughly assessing the risk tied to each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being watched over by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions modify
Hire Correct Capital as Your St. Charles, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Charles, MO with a fiduciary standard is crucial 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, 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 knowledge and qualifications necessary 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.
Get in touch with us now at 877-930-4015 or contact us through our website to schedule an appointment and find out more about how we can aid you achieve your financial goals in St. Charles, MO.
