Fiduciary financial advisor in Wentzville, MO. For those in Wentzville, MO who don't have the free time, expertise, or interest to handle their investments and retirement accounts on their own, partnering with a financial advisor provides peace of mind. That relationship is built on trust, and whether you're planning for retirement, seeking to manage 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 Wentzville, MO, you'll gain a ally who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our Wentzville, MO fiduciary financial advisors won't ever recommend a solution, investment, or strategy that we don't sincerely believe in ourselves. For financial advisors that follow the fiduciary standard and work with your best interest in mind, reach out to Correct Capital now at 877-930-4015, contact us through our wesbite, or schedule a meeting with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that holds a role of confidence and responsibility when handling assets, monetary matters, or legal matters on behalf of another. Fiduciaries are legally and ethically committed to operate in the best interests of the person or organization they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or entities charged with managing and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals designated to handle the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and manage investments for clients, with an duty to prioritize the client's financial goals.
- Corporate directors — Individuals of a company's board of directors who are assigned the responsibility of making decisions in the best interests of the shareholders.
- Guardians — Individuals appointed by the court to make decisions on behalf of minors or persons who are incapable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to operate in the best interests of their clients when dealing with their cases.
- Real estate agents — Experts who aid 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 aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they deal with their clients or beneficiaries truthfully, with genuine intention, and without any design to mislead or infringe upon the interests of their beneficiaries. They must consistently act honestly and with the best interests of the clients in mind.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must put first the beneficiary's interests ahead of their own. They ought to steer clear of any conflicts of interest that could impair their capability to act exclusively in the beneficiary's best interests. All conflicts of interest need to be disclosed to the client or beneficiary and the advisor needs to 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 prudent person would use in like circumstances. They must make well-informed and considered decisions when overseeing assets or making decisions on behalf of their client or beneficiary. This duty guarantees that they do their best to shield and expand the assets under their care while reducing risks.
What Is a Fiduciary Financial Advisor in Wentzville, MO?
Financial advisors help Wentzville, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment recommendations, retirement planning, tax planning, estate planning, asset management and others.
Any individual in Wentzville, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have accreditations and certifications from industry organizations such as the CFP Board and Fi360. Achieving and maintaining these certifications demand persistent education and a strict moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification are required to 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 Wentzville, MO Fiduciaries?
Not all financial advisor in Wentzville, MO are fiduciaries. The main reason is that financial advisors can work under various regulatory frameworks and compensation structures, resulting to varying standards of care:
- Regulatory framework — Financial advisors might be subject to distinct regulatory oversight relying on their business model. As an example, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those falling under a broker-dealer model) work under the suitability standard, which demands advice to be appropriate 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 usually charge a proportional charge for their services, making their compensation clear and reducing conflicts of interest. Other advisors generally receive commissions or different kinds of compensation linked 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 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 select investments that a reasonable 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 later unified with the Uniform Prudent Investor Act. Each state might apply their own specific 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 role that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you possess
- Your needs for liquidity, 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 estimated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Wentzville, MO
Opting to collaborate with a fiduciary financial advisor in Wentzville, MO provides an array of benefits that can significantly influence your monetary health:
- Fiduciary financial advisers must act in your best interest and uphold ethical standards
- Total disclosure of essential materials and facts and complete transparency regarding issues like risks, fees, and potential conflicts of interest, allowing you to make the optimal decisions for you and your Wentzville, MO family
- Handle investments on your behalf by employing their expertise to develop and handle a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to establish a custom approach
- Continuous monitoring and guidance to ensure your financial tactics and investments remain on track and that you can adjust to any unexpected situations the market or life presents your way
- Diminished risk with sensible and responsible investment choices done by carefully assessing the risk tied to each investment and shaping your portfolio to match your risk tolerance
- Peace of mind that your best interests are being looked after by experienced financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals evolve over time, and life scenarios change
Choose Correct Capital as Your Wentzville, MO Fiduciary Financial Advisor
Choosing a financial advisor in Wentzville, MO with a fiduciary duty 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 Wentzville, MO residents and business owners alike. Our team includes 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.
Contact us today at 877-930-4015 or contact us online to set up an appointment and find out more about how we can help you attain your financial goals in Wentzville, MO.
