Fiduciary financial advisor in Warson Woods, MO. For Warson Woods, MO residents who don't have the time, expertise, or interest to manage their assets and retirement accounts themselves, working with a financial advisor offers peace of mind. Trust is vital in that relationship, 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 Warson Woods, MO, you'll have a ally who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Warson Woods, MO fiduciary financial advisors won't ever suggest a solution, investment, or strategy that we don't truly believe in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest at heart, call Correct Capital now 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 trust and responsibility when managing assets, monetary matters, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are representing, 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 are:
- Trustees — Individuals or entities charged with handling and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who give financial advice and manage 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 entrusted with 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 unable 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 dealing with legal matters.
- Real estate agents — Specialists 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 aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they deal with their clients or beneficiaries honestly, with sincerity, and without any intention to mislead or damage the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests above their own. They ought to steer clear of any conflicts of interest that could jeopardize their capability to act exclusively in the client's best interests. Every 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 apply the standard of care, skill, and diligence that a prudent person would apply in the same or similar situations. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they do their best to safeguard and expand the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Warson Woods, MO?
Financial advisors help Warson Woods, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services consist of investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Warson Woods, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and retaining these certifications demand ongoing education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to comply with 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 Warson Woods, MO Fiduciaries?
Not all financial advisor in Warson Woods, MO is fiduciaries. The key reason lies in the fact that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks relying on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which mandates advice to be suitable for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation clear and reducing conflicts of interest. Other advisors typically receive commissions or different kinds of compensation associated with product sales, which means they might 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, often known as the prudent investor rule. The rule acknowledges that financial advisors cannot predict the future or know which investments will be profitable with 100% certainty, but mandates that a fiduciary financial advisor go for investments that a prudent person would purchase considering an acceptable risk in light of the client's goals and investment objective.
The prudent person rule originates in common law, and was eventually unified with the Uniform Prudent Investor Act. Each state can apply their own specific laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The role that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you have
- Your needs for readily available funds, 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Warson Woods, MO
Choosing to partner with a fiduciary financial advisor in Warson Woods, MO provides an array of advantages that can profoundly influence your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold ethical standards
- Complete disclosure of relevant materials and facts and full transparency regarding issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Warson Woods, MO family
- Handle investments on your behalf by employing their expertise to create and handle a diversified portfolio that matches your goals and strategies
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to establish a custom approach
- Consistent monitoring and direction to guarantee your financial tactics and investments remain on track and that you can modify to any curveballs the market or life throws your way
- Reduced risk with wise and judicious investment choices done by meticulously assessing the risk linked with each investment and tailoring your portfolio to correspond with your risk tolerance
- Assurance that your best interests are being cared for by experienced financial advisors
- A long-term relationship with a fiduciary financial advisor that understands your financial goals shift over time, and life scenarios alter
Hire Correct Capital as Your Warson Woods, MO Fiduciary Financial Advisor
Selecting a financial advisor in Warson Woods, MO with a fiduciary duty is crucial to ensure your long-term interests remain protected. 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 Warson Woods, MO individuals and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications essential to lead you on your financial journey. We give 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 learn more about how we can aid you attain your financial goals in Warson Woods, MO.
