Fiduciary financial advisor in Town and Country, MO. For Town and Country, MO residents who lack the free time, skill, or interest to manage their assets and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to grow your wealth, or saving for your kids' education, you need a financial advisor who you know will be an honest steward of your assets. By choosing a fiduciary financial advisor in Town and Country, MO, you'll gain a ally 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 recommend a product, investment, or strategy that we don't genuinely have faith in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital today at 877-930-4015, contact us through our wesbite, or schedule a meeting with on of our advisors.
About Fiduciaries
A fiduciary is a individual or entity that occupies a position of trust and duty when handling assets, finances, or legal affairs for another. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — Individuals or institutions charged with managing and overseeing assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an obligation to emphasize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals chosen 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 work in the best interests of their clients when managing legal matters.
- Real estate agents — Experts who assist clients in purchasing, 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 important elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any aim to mislead or infringe upon the interests of their beneficiaries. They must continually 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 beneficiary, which means they must put first the beneficiary's interests above their own. They must steer clear of any conflicts of interest that could jeopardize their capacity to act only in the beneficiary's best interests. All conflicts of interest must be revealed to the client or beneficiary and the advisor must still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the level of care, skill, and diligence that a judicious person would employ in comparable circumstances. They must make well-informed and considered decisions when handling assets or deciding on behalf of their client or beneficiary. This duty guarantees that they strive to protect and grow the assets within their care while mitigating 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 as they relate to their finances. These services include investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Any person in Town and Country, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and retaining these certifications require persistent education and a rigorous moral standard.
To illustrate, 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 is fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight relying on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which demands strategies to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation open and minimizing conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds of compensation linked 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 must 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 mandates that a fiduciary financial advisor select investments that a sensible person would purchase from an acceptable risk based on 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 might 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 implications of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you have
- 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 Town and Country, MO
Opting to collaborate with a fiduciary financial advisor in Town and Country, MO brings to the table an array of advantages that can significantly affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and maintain professional standards
- Total disclosure of relevant materials and facts and complete transparency concerning issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Town and Country, MO family
- Make investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that resonates with your financial goals and risk tolerance
- Complete financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to devise a personalized approach
- Consistent monitoring and advice to ensure your financial strategies and investments remain on track and that you can modify to any curveballs the market or life throws your way
- Diminished risk with wise and judicious investment choices taken by thoroughly 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 experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life conditions alter
Choose Correct Capital as Your Town and Country, MO Fiduciary Financial Advisor
Choosing a financial advisor in Town and Country, 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 place at the forefront the financial success and peace of mind of Town and Country, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge 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.
Reach out to us now at 877-930-4015 or contact us through our website to set up an appointment and find out more about how we can help you achieve your financial goals in Town and Country, MO.
