Fiduciary financial advisor in St. Louis, MO. For St. Louis, MO residents who don't have the time, expertise, or interest 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. Trust is paramount in that partnership, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a safe financial future for your family, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in St. Louis, MO, you'll have a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our St. Louis, MO fiduciary financial advisors won't ever propose a product, investment, or strategy that we do not sincerely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and work with your best interest in mind, call Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
Understanding Fiduciaries
A fiduciary is a individual or organization that occupies a role of confidence and responsibility when overseeing 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 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.
Common examples of fiduciaries include:
- Trustees — People or entities tasked with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an responsibility to prioritize 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 — Individuals chosen by the court to make decisions on behalf of minors or persons who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to act in the best interests of their clients when dealing with legal matters.
- Real estate agents — Professionals who aid 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 design to deceive or damage the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests over their own. They must steer clear of any conflicts of interest that might compromise their capability to act solely in the beneficiary's best interests. Every conflicts of interest need to 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 standard of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make informed and careful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty confirms that they strive to protect and grow the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Louis, MO?
Financial advisors help St. Louis, MO individuals, families, and business owners achieve their life goals as they relate to their finances. These services consist of investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in St. Louis, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require ongoing education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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, MO Fiduciaries?
Not all financial advisor in St. Louis, MO are fiduciaries. The key reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks based on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which mandates recommendations to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation tied to 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, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a sensible person would purchase from an acceptable risk in light of the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own particular laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action 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 unique 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, MO
Deciding to work with a fiduciary financial advisor in St. Louis, MO provides an array of benefits that can significantly affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
- Total disclosure of essential materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your St. Louis, MO family
- Make investments on your behalf utilizing their expertise to craft and oversee a diversified portfolio that aligns with your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a tailored approach
- Ongoing monitoring and advice to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
- Reduced risk with prudent and accountable investment choices taken by carefully assessing the risk associated with each investment and shaping your portfolio to correspond with your risk tolerance
- Relief that your best interests are being looked after by experienced financial professionals
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions alter
Hire Correct Capital as Your St. Louis, MO Fiduciary Financial Advisor
Selecting a financial advisor in St. Louis, MO with a fiduciary duty is vital to guarantee 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 place at the forefront the financial success and peace of mind of St. Louis, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise 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.
Contact us today at 877-930-4015 or contact us through our website to arrange an appointment and find out more about how we can aid you reach your financial goals in St. Louis, MO.
