Fiduciary financial advisor in Tower Grove, MO. For Tower Grove, MO residents who don't have the free time, skill, or interest to handle their assets and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that partnership, and whether you're planning for retirement, looking to increase your wealth, or ensuring a safe financial future for your loved ones, you need a financial advisor who you know will treat you and your money well. By choosing a fiduciary financial advisor in Tower Grove, MO, you'll gain a confidante who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Tower Grove, MO fiduciary financial advisors will never suggest a product, investment, or strategy that we do not genuinely trust in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, get in touch with Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
Understanding Fiduciaries
A fiduciary is a person or entity that holds a position of trust and responsibility when managing assets, monetary matters, or legal affairs for another person. Fiduciaries are legally and ethically bound to act in the best interests of the individual or entity they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — Individuals or entities responsible for handling and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to manage the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an duty 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 — Individuals designated by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are obligated by a fiduciary duty to work in the best interests of their clients when managing their cases.
- 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with sincerity, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must consistently 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 client, which means they must put first the beneficiary's interests over their own. They should steer clear of any conflicts of interest that might jeopardize their capability to act exclusively in the beneficiary's best interests. All conflicts of interest need to be disclosed to the client or beneficiary and the advisor has to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a wise person would apply in similar circumstances. They must make informed and thoughtful decisions when managing assets or making decisions on behalf of their client or beneficiary. This duty confirms that they do their best to protect and increase 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 as they relate to their finances. These services include investment choices, retirement consulting, tax planning, estate planning, portfolio management and others.
Any person in Tower Grove, MO can give themselves the title of "financial advisor," but to be 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 require continuous education and a stringent moral standard.
As an example, 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 Tower Grove, MO Fiduciaries?
Not all financial advisor in Tower Grove, MO are fiduciaries. The primary reason is that financial advisors can work under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands investments to be appropriate 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 typically charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Other advisors typically receive commissions or different kinds of compensation associated with 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, often 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 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, 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 strategy plays within your portfolio
- Expected return 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 Tower Grove, MO
Choosing to partner with a fiduciary financial advisor in Tower Grove, MO provides an array of advantages that can profoundly impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and maintain professional standards
- Complete disclosure of pertinent materials and facts and full transparency concerning matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Tower Grove, MO family
- Make investments on your behalf utilizing their expertise to create and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Continuous monitoring and guidance to ensure your financial strategies and investments remain on track and that you can modify to any unexpected situations the market or life presents your way
- Minimized risk with prudent and judicious investment choices done by thoroughly assessing the risk tied to each investment and tailoring your portfolio to match your risk tolerance
- Assurance that your best interests are being watched over by skilled financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life situations 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 vital 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 Tower Grove, MO individuals 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 necessary 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 through our website to arrange an appointment and discover how we can help you attain your financial goals in Tower Grove, MO.
