Fiduciary financial advisor in Westwood, MO. For Westwood, MO residents who don't have the time, knowledge, or inclination to handle their investments 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 planning for retirement, seeking to manage your wealth, or ensuring a stable financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By working with a fiduciary financial advisor in Westwood, MO, you'll have a partner 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 will never recommend a solution, investment, or strategy that we do not genuinely believe in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest in mind, call Correct Capital now at 877-930-4015, fill out our online form, 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 individual or organization that maintains a role of trust and duty when handling assets, finances, or legal concerns for another. Fiduciaries are legally and ethically committed to operate in the best interests of the person or entity they are serving, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is referred to as the fiduciary standard.
Frequent examples of fiduciaries are:
- Trustees — People or institutions charged with managing and monitoring assets held in a trust for the advantage of beneficiaries.
- Executors — Individuals chosen to manage the estate and assets of a decedent according to their will or the law.
- Financial advisors — Professionals who provide financial advice and handle investments for clients, with an obligation 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 designated by the court to make decisions on behalf of underage individuals or people who are unable to make decisions for themselves.
- Attorneys — Lawyers who are bound by a fiduciary duty to act in the best interests of their clients when dealing with their cases.
- 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 obligated to act in "good faith," which means they interact with their clients or beneficiaries truthfully, with genuine intention, and without any intention to mislead or harm the interests of their beneficiaries. They must always act honestly and with the best interests of the clients at the forefront.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests over their own. They must steer clear of any conflicts of interest that could jeopardize their capability to act exclusively in the beneficiary's best interests. Every conflicts of interest must be revealed to the client and the advisor has to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the degree of care, skill, and diligence that a judicious person would apply in the same or similar situations. They must make informed and considered decisions when handling assets or making decisions on behalf of their client. This duty guarantees that they work diligently to safeguard and grow the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in Westwood, MO?
Financial advisors help Westwood, MO individuals, families, and business owners attain their life goals as they relate to their finances. These services comprise investment recommendations, retirement consulting, tax planning, estate planning, asset management and more.
Anyone in Westwood, MO can give themselves the title of "financial advisor," but to be a fiduciary, an advisor has to have credentials and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and maintaining these certifications necessitate persistent education and a strict moral standard.
For instance, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to comply with 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 is fiduciaries. The main reason is that financial advisors can operate under different regulatory frameworks and compensation structures, resulting to divergent standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory oversight based on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which requires strategies to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation open and minimizing conflicts of interest. Other advisors generally receive commissions or other forms of compensation tied to product sales, which means they may make recommendations that are more in their interest than yours.
The Prudent-Person Rule
Fiduciary financial advisors are required 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 stipulates that a fiduciary financial advisor purchase investments that a reasonable person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule has its origins in in common law, and was later unified with the Uniform Prudent Investor Act. Each state might apply their own particular laws. Missouri law, for example, stipulates that fiduciary financial advisors must consider:
- General economic conditions
- Possible inflation or deflation
- Expected tax consequences of investments
- The part 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 unique 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 Westwood, MO
Deciding to work with a fiduciary financial advisor in Westwood, MO offers an array of benefits that can deeply influence your financial health:
- Fiduciary financial advisers must act in your best interest and uphold high standards
- Full disclosure of relevant materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the most informed decisions for you and your Westwood, MO family
- Make investments on your behalf by leveraging their expertise to craft and oversee 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 devise a tailored approach
- Ongoing monitoring and advice to guarantee your financial tactics and investments continue to be in line and that you can adjust to any curveballs the market or life throws your way
- Diminished risk with wise and judicious investment choices done by meticulously 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 cared for by skilled financial advisors
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals shift over time, and life situations alter
Choose Correct Capital as Your Westwood, MO Fiduciary Financial Advisor
Selecting a financial advisor in Westwood, MO with a fiduciary standard is crucial to guarantee your long-term interests remain protected. At Correct Capital Wealth Management, we are proud to be fiduciary financial advisors who prioritize the financial success and peace of mind of Westwood, 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 expertise and qualifications needed to lead 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 through our website to set up an appointment and learn more about how we can assist you attain your financial goals in Westwood, MO.
