Fiduciary financial advisor in Sunset Hills, MO. For Sunset Hills, MO residents who lack the time, expertise, or inclination 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, seeking to grow your wealth, or ensuring a stable financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Sunset Hills, 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 Sunset Hills, MO fiduciary financial advisors won't ever recommend a solution, investment, or strategy that we do not sincerely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with a member of our advisor team.
About Fiduciaries
A fiduciary is a individual or entity that maintains a role of confidence and responsibility when managing assets, monetary matters, or legal concerns on behalf of another. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or entity they are serving, 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 are:
- Trustees — People or entities charged with managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals designated to oversee the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an responsibility to emphasize the client's financial well-being.
- Corporate directors — Individuals of a company's board of directors who are given making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of underage individuals or persons who are incapable 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 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 deal with their clients or beneficiaries honestly, with sincerity, and without any aim 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 client, which means they must prioritize the beneficiary's interests over their own. They should eschew any conflicts of interest that might impair their capacity to act exclusively in the client's best interests. Any conflicts of interest must be disclosed to the client or beneficiary and the advisor has to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the level of care, skill, and diligence that a judicious person would use in similar circumstances. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they work diligently to protect and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Sunset Hills, MO?
Financial advisors help Sunset Hills, MO individuals, families, and business owners achieve their life goals through a variety of financial services and suggestions. These services consist of investment strategies, retirement planning, tax planning, estate planning, asset management and more.
Any individual in Sunset Hills, MO can call 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. Securing and retaining these certifications require continuous education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Sunset Hills, MO Fiduciaries?
Not all financial advisor in Sunset Hills, MO is fiduciaries. The main reason lies in the fact that financial advisors can function under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight depending on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which mandates recommendations to be fitting for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, rendering their compensation transparent and minimizing conflicts of interest. Non-fiduciary advisors usually receive commissions or different kinds of compensation tied to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
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 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 sensible person would purchase based on an acceptable risk based on the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually 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
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- Your needs for liquidity, 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 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 advantages that can significantly impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and uphold professional standards
- Complete disclosure of pertinent materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Sunset Hills, MO family
- Make investments on your behalf utilizing their expertise to craft and handle a diversified portfolio that resonates with 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 devise a custom approach
- Ongoing monitoring and advice to ensure your financial plans and investments stay aligned and that you can adjust to any curveballs the market or life gives your way
- Reduced risk with wise and judicious investment choices done by meticulously assessing the risk linked with each investment and modifying your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being cared for by knowledgeable financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life scenarios alter
Choose Correct Capital as Your Sunset Hills, MO Fiduciary Financial Advisor
Selecting a financial advisor in Sunset Hills, MO with a fiduciary duty is crucial to ensure 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 place at the forefront the financial success and peace of mind of Sunset Hills, MO residents and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential to assist 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 learn more about how we can aid you attain your financial goals in Sunset Hills, MO.
