Fiduciary financial advisor in St. Peters, MO. For St. Peters, MO residents who don't have the time, expertise, or interest to manage their assets 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 planning for retirement, seeking to grow your wealth, or ensuring a secure financial future for your family, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in St. Peters, MO, you'll gain a ally who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our St. Peters, MO fiduciary financial advisors will never suggest a product, investment, or approach that we don't truly have faith in ourselves. For financial advisors that adhere to the fiduciary standard and act with your best interest as their top priority, get in touch with Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule an appointment with a member of our advisor team.
A fiduciary is a individual or organization that occupies a role of confidence and responsibility when overseeing assets, finances, or legal concerns for another. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or entity they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or institutions charged with handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to handle the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an obligation to emphasize the client's financial goals.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — People designated by the court to make decisions on behalf of people under 18 or persons who are unable 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 handling legal matters.
- Real estate agents — Professionals who aid 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 interact 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 with integrity 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 prioritize the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that might impair their ability to act solely in the client's best interests. Every conflicts of interest must be made known to the client or beneficiary and the advisor needs to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a wise person would employ in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client. This duty confirms that they strive to safeguard and grow the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in St. Peters, MO?
Financial advisors help St. Peters, MO individuals, families, and business owners achieve their life goals through a variety of financial services and recommendations. These services include investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Any individual in St. Peters, MO can label themselves a "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 retaining these certifications require continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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. Peters, MO Fiduciaries?
Not all financial advisor in St. Peters, MO are fiduciaries. The key reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which mandates recommendations to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation tied to 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, often known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know 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 considering 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:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or course of action 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 distinctive 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. Peters, MO
Deciding to work with a fiduciary financial advisor in St. Peters, MO provides an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Total disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your St. Peters, MO family
- Handle investments on your behalf by leveraging their expertise to craft and manage a diversified portfolio that matches your financial goals and risk tolerance
- Complete financial planning and a holistic approach to your financial well-being, evaluating all facets of your financial life to establish a custom approach
- Continuous monitoring and guidance to ensure your financial plans and investments remain on track and that you can adapt to any curveballs the market or life presents your way
- Reduced risk with sensible and responsible investment choices taken by carefully assessing the risk tied to each investment and shaping your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios alter
Choose Correct Capital as Your St. Peters, MO Fiduciary Financial Advisor
Selecting a financial advisor in St. Peters, MO with a fiduciary standard is essential to ensure your long-term interests stay protected. 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. Peters, MO residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications needed to assist 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.