Fiduciary financial advisor in St. Louis Hills, MO. For St. Louis Hills, MO residents who lack the time, knowledge, or interest to manage their assets 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 preparing for retirement, looking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in St. Louis Hills, MO, you'll gain a confidante who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis Hills, MO fiduciary financial advisors will never recommend a product, investment, or approach that we don't truly 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, fill out our online form, or schedule an appointment with a member of our advisor team.
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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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About Fiduciaries
A fiduciary is a person or entity that occupies a position of trust and responsibility when handling assets, monetary matters, or legal affairs on behalf of 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 known as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — Individuals or organizations charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an duty to prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of underage individuals or individuals who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to work in the best interests of their clients when managing their legal affairs.
- Real estate agents — Professionals who help clients in purchasing, 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 crucial aspects 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 truthfully, with sincerity, and without any intention to mislead or infringe upon the interests of their beneficiaries. They must always 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 beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They should steer clear of any conflicts of interest that could compromise their capability to act exclusively in the client's best interests. Any conflicts of interest need to be revealed 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 the same or similar situations. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client. This duty confirms that they do their best to protect and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in St. Louis Hills, MO?
Financial advisors help St. Louis Hills, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment choices, retirement consulting, tax planning, estate planning, portfolio management and others.
Any individual in St. Louis Hills, 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 persistent education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 is fiduciaries. The key reason is that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands advice to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms of compensation associated with product sales, which means they could make recommendations that are more in their interest than yours.
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 can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase considering an acceptable risk in light of 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 may apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected return and appreciation of capital
- Other assets and resources you own
- Your needs for liquidity, 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 brings to the table an array of advantages that can deeply influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Full disclosure of essential materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your St. Louis Hills, MO family
- Make investments on your behalf utilizing their expertise to craft and handle a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to create a tailored approach
- Consistent monitoring and advice to ensure your financial plans and investments stay aligned and that you can modify to any surprises the market or life throws your way
- Reduced risk with prudent and responsible investment choices made by thoroughly 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 cared for by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life scenarios change
Choose Correct Capital as Your St. Louis Hills, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Louis Hills, MO with a fiduciary standard is vital to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased 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 is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to guide 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 today at 877-930-4015 or contact us through our website to schedule an appointment and discover how we can help you reach your financial goals in St. Louis Hills, MO.
