Fiduciary financial advisor in Wentzville, MO. For those in Wentzville, MO who don't have the time, skill, or inclination to oversee their assets and retirement accounts on their own, working with a financial advisor offers peace of mind. That relationship is built on trust, and whether you're preparing for retirement, seeking to manage your wealth, or saving for your kids' education, you need a financial advisor who you know will treat you and your money well. By working with a fiduciary financial advisor in Wentzville, MO, you'll have a partner who is legally and ethically bound to put your own best interests first.
At Correct Capital Wealth Management, our Wentzville, MO fiduciary financial advisors won't ever suggest a product, investment, or approach that we don't sincerely trust in ourselves. For financial advisors that adhere to the fiduciary standard and operate with your best interest in mind, call Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
Understanding Fiduciaries
A fiduciary is a person or entity that holds a role of confidence and responsibility when managing assets, monetary matters, or legal affairs for another person. Fiduciaries are legally and ethically obliged to operate in the best interests of the individual or entity they are serving, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is called the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or organizations charged with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People designated to manage the estate and assets of a deceased person based on their will or the law.
- Financial advisors — Professionals who provide financial advice and manage investments for clients, with an duty to emphasize the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals designated by the court to make decisions on behalf of minors or individuals 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 — Experts 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 vital aspects 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 genuine intention, and without any aim to deceive or harm 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 client, which means they must put first the beneficiary's interests above their own. They must avoid any conflicts of interest that might compromise their capacity to act exclusively in the client's best interests. Any conflicts of interest must be made known 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 level of care, skill, and diligence that a judicious person would apply in similar circumstances. They must make well-informed and thoughtful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they strive to protect and increase 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 achieve their life goals through a range of financial services and suggestions. These services include investment strategies, retirement planning, tax planning, estate planning, portfolio management and others.
Anyone in Wentzville, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor must possess credentials and certifications from industry organizations such as the CFP Board and Fi360. Achieving and retaining these certifications demand ongoing 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 primary reason is that financial advisors can operate under different 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. For example, Registered Investment Advisors (RIAs) are typically fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which requires advice to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The method financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a percentage fee for their services, rendering their compensation open and minimizing conflicts of interest. Other advisors usually receive commissions or other forms of compensation associated with product sales, which means they may make recommendations that are more in their interest than yours.
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 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 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 unique laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- Overall 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
- Other assets and resources you have
- 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 anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Wentzville, MO
Deciding to work with a fiduciary financial advisor in Wentzville, MO offers an array of advantages that can deeply impact your monetary health:
- Fiduciary financial advisers are required to act in your best interest and adhere to professional standards
- Full disclosure of relevant materials and facts and full transparency with matters 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 leveraging their expertise to craft and manage a diversified portfolio that matches your financial goals and risk tolerance
- Comprehensive financial planning and a well-rounded approach to your financial well-being, taking into account all facets of your financial life to devise a custom approach
- Continuous monitoring and guidance to ensure your financial strategies and investments stay aligned and that you can adapt to any surprises the market or life gives your way
- Reduced risk with wise and judicious investment choices taken by meticulously assessing the risk linked with each investment and tailoring your portfolio to align with your risk tolerance
- Relief that your best interests are being watched over by knowledgeable financial advisors
- A long-term relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life situations modify
Hire Correct Capital as Your Wentzville, MO Fiduciary Financial Advisor
Selecting a financial advisor in Wentzville, MO with a fiduciary standard is crucial to ensure your long-term interests remain 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 Wentzville, MO residents 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 necessary 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 through our website to arrange an appointment and learn more about how we can help you reach your financial goals in Wentzville, MO.
