Fiduciary financial advisor in Webster Groves, MO. For those in Webster Groves, MO who don't have the time, skill, or interest to manage their investments and retirement accounts themselves, working 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, looking 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 working with a fiduciary financial advisor in Webster Groves, MO, you'll gain a partner who is legally and ethically obliged to put your own best interests first.
At Correct Capital Wealth Management, our Webster Groves, MO fiduciary financial advisors will never propose a solution, investment, or plan that we do not genuinely have faith in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest in mind, call Correct Capital now at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
About Fiduciaries
A fiduciary is a person or organization that holds a position of confidence and duty when overseeing assets, finances, or legal affairs for someone else. Fiduciaries are legally and ethically committed to work in the best interests of the individual or organization they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Typical examples of fiduciaries include:
- Trustees — People or institutions tasked with managing and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a decedent based on their will or the law.
- Financial advisors — Professionals who offer financial advice and oversee investments for clients, with an duty to prioritize the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are entrusted with making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of people under 18 or persons who are incapable 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 managing their legal affairs.
- 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 crucial facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with sincerity, and without any design to mislead or damage the interests of their beneficiaries. They must consistently 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 should eschew any conflicts of interest that could compromise their capacity to act only in the client's best interests. All conflicts of interest must be disclosed 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 apply the standard of care, skill, and diligence that a prudent person would use in the same or similar situations. They must make well-informed and thoughtful decisions when managing assets or deciding on behalf of their client. This duty confirms that they work diligently to safeguard and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Webster Groves, MO?
Financial advisors help Webster Groves, MO individuals, families, and business owners realize their life goals through a variety of financial services and suggestions. These services include investment recommendations, retirement planning, tax planning, estate planning, asset management and more.
Anyone in Webster Groves, MO can label themselves a "financial advisor," but to be a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications require ongoing education and a stringent moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to follow 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 Webster Groves, MO Fiduciaries?
Not all financial advisor in Webster Groves, MO is fiduciaries. The main reason lies in the fact that financial advisors can operate under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to different regulatory frameworks relying on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which mandates advice to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated can influence their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation clear and minimizing conflicts of interest. Non-fiduciary advisors typically 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 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 know which investments will be profitable ahead of time, but stipulates that a fiduciary financial advisor select investments that a sensible person would purchase considering an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was subsequently unified with the Uniform Prudent Investor Act. Each state might apply their own unique 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 own
- 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 Webster Groves, MO
Deciding to work with a fiduciary financial advisor in Webster Groves, MO provides an array of benefits that can significantly affect your financial health:
- Fiduciary financial advisers are required to act in your best interest and maintain high standards
- Complete disclosure of essential materials and facts and complete transparency with matters like risks, fees, and potential conflicts of interest, permitting you to make the optimal decisions for you and your Webster Groves, MO family
- Make investments on your behalf by leveraging their expertise to develop and manage a diversified portfolio that aligns with your financial goals and risk tolerance
- Thorough 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 tactics and investments remain on track and that you can adapt to any curveballs the market or life throws your way
- Reduced risk with prudent and responsible investment choices done by thoroughly assessing the risk tied to each investment and shaping your portfolio to correspond with your risk tolerance
- Peace of mind that your best interests are being watched over by experienced financial advisors
- A prolonged relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life conditions change
Choose Correct Capital as Your Webster Groves, MO Fiduciary Financial Advisor
Selecting a financial advisor in Webster Groves, MO with a fiduciary duty is essential to ensure your long-term interests stay 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 Webster Groves, MO individuals and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the expertise 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.
Contact us today at 877-930-4015 or contact us online to schedule an appointment and learn more about how we can aid you reach your financial goals in Webster Groves, MO.
