Fiduciary financial advisor in Town and Country, MO. For those in Town and Country, MO who don't have the free time, expertise, or inclination to oversee their investments and retirement accounts on their own, partnering with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, looking to grow your wealth, or ensuring a secure financial future for your loved ones, you need a financial advisor who you know will be an honest steward of your assets. By working with a fiduciary financial advisor in Town and Country, 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 Town and Country, MO fiduciary financial advisors will never suggest a solution, investment, or plan that we don't truly trust in ourselves. For financial advisors that adhere to the fiduciary standard and work with your best interest as their top priority, call Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a person or entity that maintains a position of confidence and responsibility when managing assets, monetary matters, or legal concerns on behalf of another person. Fiduciaries are legally and ethically obliged to act in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — Individuals or institutions responsible for managing and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to manage the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an obligation to put first the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of people under 18 or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to work in the best interests of their clients when managing their cases.
- Real estate agents — Experts who assist 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 crucial aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with sincerity, and without any design to deceive or harm 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/beneficiary, which means they must prioritize the beneficiary's interests above their own. They must steer clear of any conflicts of interest that might compromise their capacity to act exclusively in the client's best interests. Any conflicts of interest must be disclosed to the client and the advisor must still act with the client/beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the degree of care, skill, and diligence that a judicious person would use in the same or similar situations. They must make informed and considered decisions when handling assets or deciding on behalf of their client or beneficiary. This duty confirms that they work diligently to protect and expand the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Town and Country, MO?
Financial advisors help Town and Country, MO individuals, families, and business owners attain their life goals through a variety of financial services and proposals. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and more.
Anyone in Town and Country, 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 demand persistent 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 Town and Country, MO Fiduciaries?
Not all financial advisor in Town and Country, MO are fiduciaries. The main reason lies in the fact that financial advisors can operate under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those within a broker-dealer model) function under the suitability standard, which requires investments to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated may impact 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 usually receive commissions or different kinds of compensation associated with product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors are required to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for investments that a sensible person would purchase based on 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 later unified with the Uniform Prudent Investor Act. Each state can apply their own particular laws. Missouri law, for example, sets out 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 return and appreciation of capital
- Additional assets and resources you own
- Your needs for liquidity, 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 Town and Country, MO
Choosing to partner with a fiduciary financial advisor in Town and Country, MO provides an array of advantages that can significantly impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and uphold ethical standards
- Total disclosure of relevant materials and facts and full transparency with issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Town and Country, MO family
- Manage investments on your behalf by leveraging their expertise to create and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a full approach to your financial well-being, evaluating all facets of your financial life to devise a tailored approach
- Ongoing monitoring and guidance to ensure your financial plans and investments stay aligned and that you can adjust to any curveballs the market or life gives your way
- Diminished risk with sensible and responsible investment choices made by thoroughly assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by knowledgeable financial professionals
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life situations alter
Choose Correct Capital as Your Town and Country, MO Fiduciary Financial Advisor
Selecting a financial advisor in Town and Country, MO with a fiduciary duty is vital 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 Town and Country, MO residents and business owners alike. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise and qualifications essential to lead you on your financial journey. We provide all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Reach out to us today at 877-930-4015 or contact us online to arrange an appointment and find out more about how we can aid you attain your financial goals in Town and Country, MO.
