Fiduciary financial advisor in Warson Woods, MO. For those in Warson Woods, MO who lack the time, expertise, or interest to handle their assets and retirement accounts themselves, partnering with a financial advisor is a great way to help meet their financial goals. That relationship is built on trust, and whether you're planning for retirement, seeking to increase your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Warson Woods, MO, you'll have a confidante who has a legal and ethical obligation 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 approach that we don't genuinely believe in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest as their top priority, call Correct Capital today 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 holds a role of trust and duty when managing assets, finances, or legal affairs on behalf of someone else. Fiduciaries are legally and ethically obliged to act 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.
Frequent examples of fiduciaries are:
- Trustees — People or organizations tasked with managing and monitoring 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 handle 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 bound to shareholders to try and increase their profit.
- Guardians — People appointed by the court to make decisions on behalf of people under 18 or persons 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 handling their legal affairs.
- 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they engage with their clients or beneficiaries honestly, with sincerity, and without any intention to mislead or damage the interests of their beneficiaries. They must continually act honestly 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 ahead of their own. They must avoid any conflicts of interest that might jeopardize their capability to act exclusively in the client's best interests. All conflicts of interest must be revealed to the client or beneficiary and the advisor needs to still act with the beneficiary's interest above their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the standard of care, skill, and diligence that a wise person would apply in comparable circumstances. They must make well-informed and careful decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to protect and increase the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Warson Woods, MO?
Financial advisors help Warson Woods, MO individuals, families, and business owners attain their life goals by means of a array of financial services and recommendations. These services comprise investment strategies, retirement consulting, tax planning, estate planning, asset management and others.
Anyone in Warson Woods, MO can label themselves a "financial advisor," but to say that they're a fiduciary, an advisor needs qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications necessitate ongoing education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required 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 are fiduciaries. The primary reason is that financial advisors can function under various regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory frameworks depending on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) operate under the suitability standard, which requires strategies to be appropriate for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, making their compensation open and reducing conflicts of interest. Other advisors typically 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, commonly 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 from an acceptable risk considering 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 specific 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 approach plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you possess
- 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 Warson Woods, MO
Deciding to work with a fiduciary financial advisor in Warson Woods, MO provides an array of benefits that can deeply influence your financial health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Full disclosure of pertinent materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, permitting you to make the most informed decisions for you and your Warson Woods, MO family
- Manage investments on your behalf by leveraging their expertise to create and oversee a diversified portfolio that aligns with your financial goals and risk tolerance
- Thorough financial planning and a full approach to your financial well-being, considering all facets of your financial life to create a custom approach
- Continuous monitoring and guidance to guarantee your financial strategies and investments remain on track and that you can modify to any unexpected situations the market or life gives your way
- Diminished risk with wise and responsible investment choices made 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 skilled financial advisors
- A long-term relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life situations change
Choose Correct Capital as Your Warson Woods, MO Fiduciary Financial Advisor
Choosing a financial advisor in Warson Woods, MO with a fiduciary standard is vital to ensure your long-term interests remain protected. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of Warson Woods, MO residents and business owners equally. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the skills and qualifications essential 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.
Contact us today at 877-930-4015 or contact us online to set up an appointment and discover how we can assist you reach your financial goals in Warson Woods, MO.
