Fiduciary financial advisor in St. Peters, MO. For St. Peters, MO residents who lack 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. That relationship is built on trust, and whether you're planning 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 choosing a fiduciary financial advisor in St. Peters, MO, you'll gain a confidante who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our St. Peters, MO fiduciary financial advisors will never recommend a solution, investment, or strategy that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a position of confidence and responsibility when managing assets, monetary matters, or legal matters for another person. Fiduciaries are legally and ethically obliged to work 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 known as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or entities tasked with handling and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an obligation to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are entrusted with the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People appointed by the court to make decisions on behalf of minors or individuals who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when handling legal matters.
- 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries honestly, with genuine intention, and without any design to mislead or infringe upon the interests of their beneficiaries. They must always 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 client, which means they must prioritize the beneficiary's interests above their own. They must steer clear of any conflicts of interest that could jeopardize their capability to act solely in the client's best interests. Every conflicts of interest must be made known to the client and the advisor must still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make well-informed and thoughtful decisions when handling assets or deciding on behalf of their client. This duty ensures that they work diligently to shield and increase the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in St. Peters, MO?
Financial advisors help St. Peters, MO individuals, families, and business owners attain their life goals via a range of financial services and recommendations. These services consist of investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Any individual in St. Peters, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand ongoing education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to comply with 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 is fiduciaries. The main reason is that financial advisors can work under diverse regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks depending on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires strategies to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation linked 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, 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 go for investments that a reasonable 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 subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General 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 profit and appreciation of capital
- Additional 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Peters, MO
Choosing to partner with a fiduciary financial advisor in St. Peters, MO provides an array of advantages that can deeply affect your monetary health:
- Fiduciary financial advisers must act in your best interest and adhere to ethical standards
- Full disclosure of pertinent materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your St. Peters, MO family
- Handle investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that matches your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, considering all facets of your financial life to devise a custom approach
- Consistent monitoring and direction to ensure your financial plans and investments remain on track and that you can adjust to any unexpected situations the market or life throws your way
- Minimized risk with prudent and judicious investment choices taken by meticulously assessing the risk tied to each investment and tailoring your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being cared for by experienced financial professionals
- A prolonged relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life scenarios modify
Hire Correct Capital as Your St. Peters, MO Fiduciary Financial Advisor
Choosing a financial advisor in St. Peters, MO with a fiduciary standard is crucial to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of St. Peters, MO residents and business owners equally. 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 offer all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Reach out to us now at 877-930-4015 or contact us online to set up an appointment and discover how we can assist you attain your financial goals in St. Peters, MO.
