Fiduciary financial advisor in University City, MO. For those in University City, MO who don't have the time, skill, or inclination to oversee their investments and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is vital in that relationship, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a safe financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in University City, MO, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our University City, MO fiduciary financial advisors will never recommend a product, investment, or strategy that we do not truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and operate with your best interest at heart, reach out to Correct Capital today at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
About Fiduciaries
A fiduciary is a person or organization that occupies a role of confidence and duty when overseeing assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically obliged to operate in the best interests of the person or organization 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 — People or entities responsible for managing and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People chosen 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 duty to emphasize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are assigned 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 obligated 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 aspects 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 intention to deceive or damage 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 client, which means they must put first the beneficiary's interests over their own. They ought to steer clear of any conflicts of interest that could jeopardize their capacity to act only in the beneficiary's best interests. Every conflicts of interest need to be revealed to the client and the advisor needs to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a prudent person would employ in the same or similar situations. They must make informed and considered decisions when handling assets or deciding on behalf of their client. This duty confirms that they do their best to protect and grow the assets under their care while minimizing risks.
What Is a Fiduciary Financial Advisor in University City, MO?
Financial advisors help University City, MO individuals, families, and business owners realize their life goals via a range of financial services and suggestions. These services consist of investment strategies, retirement consulting, tax planning, estate planning, portfolio management and others.
Anyone in University City, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications demand persistent education and a rigorous moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to 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 University City, MO Fiduciaries?
Not all financial advisor in University City, MO is fiduciaries. The main reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires strategies to be fitting for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The method financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, rendering their compensation clear and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or other forms 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 need 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 determine which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor go for 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 might apply their own unique laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The role that each investment or approach 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in University City, MO
Deciding to work with a fiduciary financial advisor in University City, MO brings to the table an array of benefits that can deeply influence your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Total disclosure of essential 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 University City, MO family
- Manage investments on your behalf by leveraging their expertise to develop and oversee a diversified portfolio that resonates with your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to create a personalized approach
- Continuous monitoring and guidance to ensure your financial plans and investments continue to be in line and that you can modify to any unexpected situations the market or life throws your way
- Reduced risk with wise and responsible investment choices made by carefully assessing the risk associated with each investment and tailoring your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by experienced financial professionals
- A lasting relationship with a fiduciary financial advisor that understands your financial goals change over time, and life situations alter
Hire Correct Capital as Your University City, MO Fiduciary Financial Advisor
Selecting a financial advisor in University City, MO with a fiduciary standard is essential 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 University City, 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 expertise and qualifications needed to guide 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.
Contact us today at 877-930-4015 or contact us through our website to arrange an appointment and learn more about how we can assist you achieve your financial goals in University City, MO.
