Fiduciary financial advisor in St. Louis County, MO. For those in St. Louis County, MO who don't have the free time, expertise, or inclination 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. That relationship is built on trust, and whether you're planning for retirement, looking to increase your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in St. Louis County, MO, you'll have a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis County, MO fiduciary financial advisors won't ever propose a product, investment, or approach that we don't genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, reach out to Correct Capital now at 314-930-401(k), contact us through our wesbite, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a person or organization that maintains a position of confidence and duty when overseeing assets, finances, or legal concerns for someone else. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or organizations tasked with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals appointed to handle 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 duty to put first 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 minors or people who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to work in the best interests of their clients when managing their legal affairs.
- Real estate agents — Specialists who help 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 engage with their clients or beneficiaries truthfully, with genuine intention, and without any intention to mislead 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/beneficiary, which means they must put first the beneficiary's interests above their own. They ought to steer clear of any conflicts of interest that could jeopardize their ability to act exclusively in the client's best interests. Any conflicts of interest need to be disclosed to the client and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a judicious person would employ in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client. This duty guarantees that they strive to safeguard and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in St. Louis County, MO?
Financial advisors help St. Louis County, MO individuals, families, and business owners achieve their life goals via a variety of financial services and recommendations. These services comprise investment recommendations, retirement planning, tax planning, estate planning, asset management and more.
Any individual in St. Louis County, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications necessitate ongoing education and a strict moral standard.
As an example, 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. Louis County, MO Fiduciaries?
Not all financial advisor in St. Louis County, MO is fiduciaries. The key reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires advice to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation transparent and reducing conflicts of interest. Other advisors usually receive commissions or different kinds of compensation associated with 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, 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 prudent person would purchase from an acceptable risk in light of 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 might apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you own
- Your needs for readily available funds, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Louis County, MO
Opting to collaborate with a fiduciary financial advisor in St. Louis County, MO brings to the table an array of benefits that can deeply influence your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to high standards
- Complete disclosure of essential materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your St. Louis County, MO family
- Handle investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that aligns with your goals and strategies
- Thorough financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to establish a custom approach
- Ongoing monitoring and advice to ensure your financial strategies and investments stay aligned and that you can adjust to any curveballs the market or life throws your way
- Reduced risk with sensible and accountable investment choices done by carefully assessing the risk linked with each investment and modifying your portfolio to match 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 understands your financial goals shift over time, and life conditions change
Choose Correct Capital as Your St. Louis County, MO Fiduciary Financial Advisor
Selecting a financial advisor in St. Louis County, MO with a fiduciary standard is vital to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of St. Louis County, MO individuals and business owners alike. 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 lead 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.