Fiduciary financial advisor in Sunset Hills, MO. For Sunset Hills, MO residents who don't have the time, knowledge, or inclination to manage their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is paramount in that partnership, and whether you're preparing for retirement, looking to grow 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 Sunset 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 Sunset Hills, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we don't genuinely believe 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 today at 877-930-4015, contact us through our wesbite, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that maintains a role of trust and duty when overseeing assets, monetary matters, or legal concerns on behalf of another. Fiduciaries are legally and ethically committed 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 referred to as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — Individuals or institutions responsible for handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an duty to put first the client's financial goals.
- Corporate directors — Individuals 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 people who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when managing legal matters.
- Real estate agents — Experts who aid clients in buying, 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 vital aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with genuine intention, and without any design to deceive or damage the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must put first the beneficiary's interests above their own. They should avoid any conflicts of interest that could impair their ability to act exclusively in the client's best interests. Any conflicts of interest need to be revealed to the client and the advisor has to still act with the client/beneficiary's interest above 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 employ in like circumstances. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client or beneficiary. This duty confirms that they strive to shield and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Sunset Hills, MO?
Financial advisors help Sunset Hills, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment recommendations, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in Sunset Hills, 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. Obtaining and keeping these certifications demand persistent education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Sunset Hills, MO Fiduciaries?
Not all financial advisor in Sunset Hills, MO is fiduciaries. The key reason lies in the fact that financial advisors can operate under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which mandates strategies to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation open and reducing conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms of compensation associated with product sales, which means they might 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, also known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or determine which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Additional 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Sunset Hills, MO
Choosing to partner with a fiduciary financial advisor in Sunset Hills, MO provides an array of benefits that can profoundly impact your fiscal health:
- Fiduciary financial advisers must act in your best interest and maintain ethical standards
- Complete disclosure of pertinent materials and facts and full transparency with matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Sunset Hills, MO family
- Handle investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Comprehensive financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a custom approach
- Consistent monitoring and direction to guarantee your financial tactics and investments continue to be in line and that you can adapt to any curveballs the market or life presents your way
- Minimized risk with prudent and responsible investment choices made by meticulously assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being watched over by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life conditions modify
Hire Correct Capital as Your Sunset Hills, MO Fiduciary Financial Advisor
Choosing a financial advisor in Sunset Hills, MO with a fiduciary duty is essential 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 prioritize the financial success and peace of mind of Sunset Hills, 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 offer 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 online to schedule an appointment and learn more about how we can aid you attain your financial goals in Sunset Hills, MO.
