Fiduciary financial advisor in Westwood, MO. For Westwood, MO residents who don't have the free time, expertise, or interest to handle their assets and retirement accounts on their own, working with a financial advisor provides peace of mind. Trust is paramount in that partnership, and whether you're planning for retirement, looking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By choosing a fiduciary financial advisor in Westwood, MO, you'll have a ally who has a legal and ethical responsibility to put your own best interests first.
At Correct Capital Wealth Management, our Westwood, MO fiduciary financial advisors won't ever recommend a product, investment, or plan that we don't truly have faith in ourselves. For financial advisors that uphold the fiduciary standard and work with your best interest at heart, call Correct Capital today at 314-930-401(k), contact us through our wesbite, or schedule an appointment with on of our advisors.
A fiduciary is a individual or organization that maintains a position of confidence and responsibility when overseeing assets, monetary matters, or legal matters for another person. Fiduciaries are legally and ethically committed to operate in the best interests of the individual or organization they are representing, often known as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or institutions responsible for handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — Individuals chosen 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 responsibility to emphasize 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 — People appointed by the court to make decisions on behalf of underage individuals or persons who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are committed by a fiduciary duty to act in the best interests of their clients when managing legal matters.
- 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 important facets to understanding fiduciary duty:
1. Good Faith
Fiduciaries are mandated to act in "good faith," which means they interact with their clients or beneficiaries with integrity, with sincerity, and without any design to deceive or damage 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 beneficiary, which means they must put first the beneficiary's interests over their own. They must avoid any conflicts of interest that might compromise their ability to act exclusively in the beneficiary's best interests. Any conflicts of interest must be revealed to the client or beneficiary and the advisor has to still act with the beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to exercise the standard of care, skill, and diligence that a wise person would apply in the same or similar situations. They must make well-informed and considered decisions when overseeing assets or deciding on behalf of their client. This duty confirms that they strive to safeguard and expand the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Westwood, MO?
Financial advisors help Westwood, MO individuals, families, and business owners attain their life goals through a range of financial services and suggestions. These services consist of investment recommendations, retirement planning, tax planning, estate planning, asset management and others.
Any person in Westwood, MO can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications demand persistent education and a strict moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Westwood, MO Fiduciaries?
Not all financial advisor in Westwood, MO are fiduciaries. The primary reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to divergent standards of care:
- Regulatory framework — Financial advisors can be subject to distinct regulatory oversight relying on their business model. For example, Registered Investment Advisors (RIAs) are generally fiduciaries. Conversely, some advisors (for example, those falling under a broker-dealer model) function under the suitability standard, which mandates investments to be appropriate for clients but doesn't require the same level of fiduciary duty.
- Compensation structure — The manner financial advisors are compensated may impact their fiduciary status. Fiduciary advisors often charge a proportional charge for their services, making their compensation open and limiting conflicts of interest. Non-fiduciary advisors generally receive commissions or different kinds 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 need to 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 ahead of time, but stipulates that a fiduciary financial advisor purchase investments that a prudent 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 subsequently unified with the Uniform Prudent Investor Act. Each state may apply their own particular 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 role that each investment or course of action plays within your portfolio
- Expected profit and appreciation of capital
- Other assets and resources you own
- 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 Westwood, MO
Opting to collaborate with a fiduciary financial advisor in Westwood, MO brings to the table an array of benefits that can significantly affect your fiscal health:
- Fiduciary financial advisers must act in your best interest and adhere to professional standards
- Full disclosure of relevant materials and facts and complete transparency with issues like risks, fees, and potential conflicts of interest, enabling you to make the optimal decisions for you and your Westwood, MO family
- Make investments on your behalf by employing their expertise to create and handle a diversified portfolio that resonates with your goals and strategies
- Comprehensive financial planning and a holistic approach to your financial well-being, considering all facets of your financial life to devise a personalized approach
- Ongoing monitoring and guidance to guarantee your financial strategies and investments continue to be in line and that you can adapt to any surprises the market or life gives your way
- Minimized risk with wise and accountable investment choices taken by thoroughly assessing the risk linked with each investment and modifying your portfolio to correspond with your risk tolerance
- Relief that your best interests are being cared for by knowledgeable financial professionals
- A long-term relationship with a fiduciary financial advisor that understands your financial goals evolve over time, and life conditions alter
Choose Correct Capital as Your Westwood, MO Fiduciary Financial Advisor
Selecting a financial advisor in Westwood, 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 place at the forefront the financial success and peace of mind of Westwood, 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 skills 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.