Fiduciary financial advisor in St. Charles, MO. For those in St. Charles, MO who lack the time, skill, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to manage your wealth, or ensuring a secure financial future for your family, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in St. Charles, MO, you'll have a confidante who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our St. Charles, MO fiduciary financial advisors will never recommend a solution, investment, or approach that we don't sincerely trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital now 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 person or organization that occupies a role of trust and duty when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically obliged to operate 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.
Frequent examples of fiduciaries are:
- Trustees — People or institutions tasked with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People chosen to oversee the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who give financial advice and oversee investments for clients, with an duty to put first the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of people under 18 or individuals who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to operate in the best interests of their clients when handling legal matters.
- Real estate agents — Specialists who help clients in buying, 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 important elements 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 aim to mislead or damage 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/beneficiary, which means they must put first the beneficiary's interests over their own. They should eschew any conflicts of interest that might jeopardize their capacity to act solely in the beneficiary's best interests. All conflicts of interest need to be disclosed 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 exercise the degree of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they strive to protect and expand the assets within their care while mitigating 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 as they relate to their finances. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in St. Charles, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications demand continuous education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 St. Charles, MO Fiduciaries?
Not all financial advisor in St. Charles, MO are fiduciaries. The primary reason is that financial advisors can work under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands strategies to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Other advisors usually receive commissions or different kinds of compensation associated with product sales, which means they might make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors must abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor go for investments that a prudent 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 subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or approach 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 anticipated 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 brings to the table an array of benefits that can deeply affect your monetary health:
- Fiduciary financial advisers must act in your best interest and maintain professional standards
- Total disclosure of pertinent materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your St. Charles, MO family
- Manage investments on your behalf by leveraging their expertise to develop and oversee a diversified portfolio that matches your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to establish a personalized approach
- Consistent monitoring and direction to ensure your financial tactics and investments remain on track and that you can adapt to any curveballs the market or life presents your way
- Minimized risk with wise and responsible investment choices made by carefully assessing the risk associated with each investment and modifying your portfolio to match 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 grasps your financial goals change over time, and life conditions alter
Choose Correct Capital as Your St. Charles, MO Fiduciary Financial Advisor
Selecting a financial advisor in St. Charles, MO with a fiduciary duty is essential to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of St. Charles, MO residents and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications necessary to assist you on your financial journey. We give 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 online to arrange an appointment and find out more about how we can assist you attain your financial goals in St. Charles, MO.
