Fiduciary financial advisor in Weldon Spring, MO. For those in Weldon Spring, MO who don't have the free time, skill, or interest to oversee their assets and retirement accounts on their own, working with a financial advisor is a great way to help meet their financial goals. Trust is crucial in that relationship, and whether you're preparing for retirement, seeking to manage your wealth, or ensuring a safe financial future for your family, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Weldon Spring, MO, you'll gain a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Weldon Spring, MO fiduciary financial advisors will never suggest a solution, investment, or plan that we do not sincerely trust 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, contact us through our wesbite, or schedule a meeting with on of our advisors.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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What Is a Fiduciary?
A fiduciary is a person or organization that holds a position of confidence and responsibility when overseeing assets, monetary matters, or legal matters for another. Fiduciaries are legally and ethically bound 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 — Individuals or institutions tasked with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals appointed to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle 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 bound to shareholders to try and increase their profit.
- Guardians — People chosen by the court to make decisions on behalf of minors or persons who are not able to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when handling legal matters.
- Real estate agents — Specialists who help clients in buying, 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 have an obligation to act in "good faith," which means they engage with their clients or beneficiaries honestly, with sincerity, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently 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 beneficiary, which means they must prioritize the beneficiary's interests above their own. They ought to eschew any conflicts of interest that might jeopardize their capability to act solely in the client's best interests. All conflicts of interest need to be disclosed to the client and the advisor must still act with the client/beneficiary's interest over 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 use in similar circumstances. They must make informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty ensures that they strive to safeguard and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Weldon Spring, MO?
Financial advisors help Weldon Spring, MO individuals, families, and business owners achieve their life goals via a array of financial services and suggestions. These services comprise investment recommendations, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Weldon Spring, MO can call themselves a "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 maintaining these certifications necessitate persistent education and a stringent moral standard.
As an example, 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 Weldon Spring, MO Fiduciaries?
Not all financial advisor in Weldon Spring, MO is fiduciaries. The primary reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks based on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which requires advice to be suitable for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation clear and minimizing conflicts of interest. Other advisors generally 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 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 sensible person would purchase considering an acceptable risk in light of the client's goals and investment objective.
The prudent person rule is an early common law principle, and was eventually unified with the Uniform Prudent Investor Act. Each state might apply their own specific laws. Missouri law, for example, sets out that fiduciary financial advisors must consider:
- Overall economic conditions
- Possible inflation or deflation
- Expected tax implications of investments
- The part that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you possess
- Your needs for readily available funds, income, and preservation of capital
- An asset's special 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 Weldon Spring, MO
Choosing to partner with a fiduciary financial advisor in Weldon Spring, MO offers an array of advantages that can deeply affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Complete disclosure of essential materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Weldon Spring, MO family
- Manage investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that aligns 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 establish a personalized approach
- Ongoing monitoring and advice to ensure your financial strategies and investments remain on track and that you can adapt to any curveballs the market or life gives your way
- Minimized risk with wise and responsible investment choices done by meticulously 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 skilled financial professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals shift over time, and life conditions change
Choose Correct Capital as Your Weldon Spring, MO Fiduciary Financial Advisor
Selecting a financial advisor in Weldon Spring, 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 proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Weldon Spring, MO individuals and business owners equally. Our team is comprised of CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications essential to guide 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 today at 877-930-4015 or contact us through our website to set up an appointment and learn more about how we can assist you attain your financial goals in Weldon Spring, MO.
