Fiduciary financial advisor in Weldon Spring, MO. For those in Weldon Spring, MO who lack the free time, knowledge, or interest to oversee 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 preparing for retirement, looking to increase your wealth, or ensuring a safe financial future for your family, the knowledge, skill, and honesty of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Weldon Spring, MO, you'll gain a partner who has a legal and ethical obligation to put your own best interests first.
At Correct Capital Wealth Management, our Weldon Spring, MO fiduciary financial advisors won't ever recommend a solution, investment, or plan that we don't truly have faith in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest as their top priority, get in touch with Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule an appointment with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a individual or entity that maintains a position of trust and responsibility when managing assets, monetary matters, or legal concerns for someone else. Fiduciaries are legally and ethically obliged to operate 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 known as the fiduciary standard.
Frequent examples of fiduciaries include:
- Trustees — People or organizations charged with managing and monitoring assets held in a trust for the benefit of beneficiaries.
- Executors — Individuals chosen to handle the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an responsibility to put first the client's financial well-being.
- Corporate directors — Representatives of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of underage individuals or persons who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to work in the best interests of their clients when managing their legal affairs.
- Real estate agents — Professionals who aid 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 aspects 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 truthfully, with sincerity, and without any intention to mislead or infringe upon the interests of their beneficiaries. They must always act honestly 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 put first the beneficiary's interests above their own. They must eschew any conflicts of interest that could compromise their capability to act only in the client's best interests. All conflicts of interest need to be revealed 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 apply the standard of care, skill, and diligence that a prudent person would use in comparable circumstances. They must make informed and careful decisions when overseeing assets or making decisions on behalf of their client. This duty ensures that they work diligently to protect and expand 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 as they relate to their finances. These services comprise investment choices, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Weldon Spring, MO can label 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. Achieving and keeping these certifications necessitate ongoing 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 Weldon Spring, MO Fiduciaries?
Not all financial advisor in Weldon Spring, MO are fiduciaries. The key reason is that financial advisors can function under diverse regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors can be subject to various regulatory frameworks depending on their business model. For example, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) function under the suitability standard, which requires advice to be appropriate for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, rendering their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors typically receive commissions or different kinds of compensation tied to product sales, which means they could make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors need to abide by the Prudent-Person Rule, often 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 mandates that a fiduciary financial advisor purchase investments that a reasonable person would purchase considering an acceptable risk based on 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 particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Possible 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
- Other 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 Weldon Spring, MO
Opting to collaborate with a fiduciary financial advisor in Weldon Spring, MO offers an array of benefits that can deeply impact your fiscal health:
- Fiduciary financial advisers are obligated to act in your best interest and uphold professional standards
- Full disclosure of relevant materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Weldon Spring, MO family
- Manage investments on your behalf by leveraging their expertise to craft and oversee a diversified portfolio that aligns with 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 devise a personalized approach
- Consistent monitoring and direction to guarantee your financial strategies and investments remain on track and that you can adapt to any surprises the market or life gives your way
- Reduced risk with prudent and judicious investment choices taken by thoroughly assessing the risk associated with 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 professionals
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life conditions modify
Choose Correct Capital as Your Weldon Spring, MO Fiduciary Financial Advisor
Choosing a financial advisor in Weldon Spring, MO with a fiduciary standard is essential to ensure your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who prioritize the financial success and peace of mind of Weldon Spring, 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 assist 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.