Fiduciary financial advisor in St. Louis Hills, MO. For those in St. Louis Hills, MO who lack the time, knowledge, or interest to oversee their investments and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in St. Louis Hills, MO, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis Hills, MO fiduciary financial advisors will never recommend a solution, investment, or plan that we don't truly trust in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, reach out to Correct Capital today at 314-930-401(k), fill out our online form, or schedule an appointment with a member of our advisor team.
A fiduciary is a individual or organization that occupies a position of confidence and duty when handling assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the individual or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or institutions charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to oversee the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an duty to put first the client's financial goals.
- Corporate directors — Members of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when dealing with legal matters.
- Real estate agents — Professionals who assist clients in purchasing, 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 vital elements 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 truthfully, with sincerity, and without any intention to mislead or harm the interests of their beneficiaries. They must continually act honestly 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 over their own. They should steer clear of any conflicts of interest that might impair their capacity to act exclusively in the beneficiary's best interests. All conflicts of interest must be disclosed to the client and the advisor must still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would use in like circumstances. They must make well-informed and considered decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they do their best to safeguard and expand the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Louis Hills, MO?
Financial advisors help St. Louis Hills, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any person in St. Louis Hills, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and keeping these certifications necessitate ongoing education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need 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. Louis Hills, MO Fiduciaries?
Not all financial advisor in St. Louis Hills, MO are fiduciaries. The main reason is that financial advisors can operate under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function 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 usually charge a percentage fee for their services, making their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or other forms 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, often known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a prudent person would purchase considering 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 later unified with the Uniform Prudent Investor Act. Each state may apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Louis Hills, MO
Opting to collaborate with a fiduciary financial advisor in St. Louis Hills, MO provides an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Full disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your St. Louis Hills, MO family
- Manage investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Ongoing monitoring and advice to ensure your financial plans and investments remain on track and that you can adapt to any unexpected situations the market or life presents your way
- Minimized risk with prudent and accountable investment choices taken by carefully assessing the risk linked with each investment and tailoring your portfolio to match your risk tolerance
- Peace of mind that your best interests are being watched over by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life situations modify
Hire Correct Capital as Your St. Louis Hills, MO Fiduciary Financial Advisor
Selecting a financial advisor in St. Louis Hills, MO with a fiduciary standard is essential 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. Louis Hills, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed to guide 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.