Fiduciary financial advisor in University City, MO. For those in University City, MO who lack the time, expertise, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to manage your wealth, or ensuring a safe financial future for your family, 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 gain a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our University City, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest as their top priority, get in touch with Correct Capital today at 877-930-4015, contact us online, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that maintains a role of confidence and duty when overseeing assets, monetary matters, or legal matters on behalf of another person. Fiduciaries are legally and ethically bound to act in the best interests of the person or organization they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Typical examples of fiduciaries are:
- Trustees — People or entities tasked with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People designated to handle the estate and assets of a deceased person according to their will or the law.
- Financial advisors — Professionals who provide 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 given the responsibility of making decisions in the best interests of the shareholders.
- Guardians — People chosen by the court to make decisions on behalf of people under 18 or people who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are bound by a fiduciary duty to operate in the best interests of their clients when handling legal matters.
- Real estate agents — Experts who aid 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 vital facets 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 intention to deceive or infringe upon the interests of their beneficiaries. They must continually act with integrity and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the beneficiary, which means they must prioritize the beneficiary's interests above their own. They must avoid any conflicts of interest that could impair their ability to act only in the beneficiary's best interests. Any conflicts of interest need to be made known to the client and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the degree of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make well-informed and careful decisions when handling assets or making decisions on behalf of their client or beneficiary. This duty confirms that they do their best to protect and expand the assets under their care while mitigating 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 variety of financial services and proposals. These services comprise investment strategies, retirement planning, tax planning, estate planning, asset management and others.
Anyone in University City, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications demand continuous education and a strict 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 University City, MO Fiduciaries?
Not all financial advisor in University City, MO is fiduciaries. The key reason is that financial advisors can function under various regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which requires investments to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors usually 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 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 purchase investments that a sensible person would purchase based on 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 particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or strategy plays within your portfolio
- Expected return and appreciation of capital
- Additional assets and resources you own
- Your needs for readily available funds, 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in University City, MO
Opting to collaborate with a fiduciary financial advisor in University City, MO provides an array of advantages that can significantly affect your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and adhere to professional standards
- Full disclosure of relevant materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your University City, MO family
- Handle investments on your behalf by leveraging their expertise to craft and oversee a diversified portfolio that resonates with your goals and strategies
- Complete financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a tailored approach
- Consistent monitoring and direction to ensure your financial plans and investments continue to be in line and that you can modify to any curveballs the market or life throws your way
- Reduced risk with sensible and judicious investment choices made by meticulously assessing the risk tied to each investment and modifying your portfolio to align with your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that grasps your financial goals change over time, and life conditions modify
Choose Correct Capital as Your University City, MO Fiduciary Financial Advisor
Choosing a financial advisor in University City, MO with a fiduciary duty 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 hold in high regard the financial success and peace of mind of University City, 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 needed to lead 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 today at 877-930-4015 or contact us through our website to schedule an appointment and find out more about how we can assist you attain your financial goals in University City, MO.
