Fiduciary financial advisor in Tower Grove, MO. For those in Tower Grove, MO who don't have the time, skill, or inclination to manage their assets and retirement accounts on their own, partnering with a financial advisor is a great way to help meet their financial goals. Trust is vital in that partnership, and whether you're preparing for retirement, seeking to increase your wealth, or ensuring a secure financial future for your loved ones, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Tower Grove, MO, you'll gain a partner who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Tower Grove, MO fiduciary financial advisors will never propose a solution, investment, or strategy that we do not truly trust in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest at heart, get in touch with Correct Capital now at 314-930-401(k), fill out our online form, or schedule a meeting with on of our advisors.
A fiduciary is a person or organization that maintains a position of confidence and responsibility when overseeing assets, finances, or legal concerns for another. Fiduciaries are legally and ethically committed to act in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or organizations responsible for handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and manage investments for clients, with an duty to emphasize 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 — People chosen by the court to make decisions on behalf of minors or people who are not able to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to work in the best interests of their clients when dealing with their legal affairs.
- Real estate agents — Experts who assist 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 facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any intention to deceive or harm the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests over their own. They should eschew any conflicts of interest that might jeopardize their capacity to act only in the beneficiary's best interests. All conflicts of interest must be disclosed to the client and the advisor needs 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 wise person would apply in like circumstances. They must make informed and careful decisions when handling assets or deciding on behalf of their client. This duty guarantees that they strive to protect and expand the assets within their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Tower Grove, MO?
Financial advisors help Tower Grove, MO individuals, families, and business owners realize their life goals by means of a array of financial services and recommendations. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in Tower Grove, MO can call 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. Achieving and keeping these certifications necessitate persistent education and a stringent moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to follow 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 Tower Grove, MO Fiduciaries?
Not all financial advisor in Tower Grove, MO are fiduciaries. The primary reason is that financial advisors can operate under various regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which requires advice to be suitable for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a percentage fee for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms 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 are required to abide by the Prudent-Person Rule, commonly known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or determine which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor purchase 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 originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you have
- Your needs for readily available funds, income, and preservation of capital
- An asset's special 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 Tower Grove, MO
Deciding to work with a fiduciary financial advisor in Tower Grove, MO brings to the table an array of benefits that can profoundly influence your financial health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Tower Grove, MO family
- Manage investments on your behalf utilizing their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a full approach to your financial well-being, taking into account all facets of your financial life to establish a custom approach
- Continuous monitoring and direction to ensure your financial strategies and investments remain on track and that you can adjust to any surprises the market or life presents your way
- Diminished risk with sensible and responsible investment choices made by carefully assessing the risk tied to each investment and modifying your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being cared for by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions modify
Choose Correct Capital as Your Tower Grove, MO Fiduciary Financial Advisor
Choosing a financial advisor in Tower Grove, MO with a fiduciary standard is crucial to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Tower Grove, MO individuals and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications essential to lead 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.