Fiduciary financial advisor in Wildwood, MO. For those in Wildwood, MO who lack the free time, expertise, or inclination to oversee 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 preparing for retirement, looking to grow your wealth, or ensuring a safe financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor are of utmost importance. By choosing a fiduciary financial advisor in Wildwood, 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 Wildwood, MO fiduciary financial advisors won't ever recommend a solution, investment, or approach that we don't truly trust in ourselves. For financial advisors that uphold the fiduciary standard and act with your best interest at heart, get in touch with Correct Capital now at 877-930-4015, fill out our online form, or schedule an appointment with on of our advisors.
What Is a Fiduciary?
A fiduciary is a individual or organization that occupies a role of confidence and responsibility when managing assets, monetary matters, or legal concerns for another person. Fiduciaries are legally and ethically obliged to work 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 called the fiduciary standard.
Common examples of fiduciaries include:
- Trustees — People or institutions charged with handling and overseeing assets held in a trust for the gain of beneficiaries.
- Executors — People chosen to oversee the estate and assets of a deceased person as per their will or the law.
- Financial advisors — Professionals who offer financial advice and handle investments for clients, with an duty to emphasize the client's financial well-being.
- Corporate directors — Members of a company's board of directors who are assigned making decisions in the best interests of the shareholders.
- Guardians — Individuals designated by the court to make decisions on behalf of people under 18 or persons who are unable to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to work 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 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 important aspects to understanding fiduciary duty:
1. Good Faith
Fiduciaries are required to act in "good faith," which means they deal with their clients or beneficiaries with integrity, with sincerity, and without any intention to deceive or damage the interests of their beneficiaries. They must always 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 over their own. They should eschew any conflicts of interest that could jeopardize their capability to act exclusively in the beneficiary's best interests. Every conflicts of interest need to be made known to the client and the advisor must still act with the 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 wise person would use in like circumstances. They must make informed and considered decisions when managing assets or making decisions on behalf of their client. This duty guarantees that they work diligently to safeguard and expand the assets within their care while minimizing risks.
What Is a Fiduciary Financial Advisor in Wildwood, MO?
Financial advisors help Wildwood, MO individuals, families, and business owners realize their life goals by means of a range of financial services and proposals. These services comprise investment choices, retirement consulting, tax planning, estate planning, portfolio management and more.
Anyone in Wildwood, MO can give themselves the title of "financial advisor," but to say that they're a fiduciary, an advisor needs credentials and certifications from industry organizations such as the CFP Board and Fi360. Securing and keeping these certifications necessitate continuous education and a rigorous 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 Wildwood, MO Fiduciaries?
Not all financial advisor in Wildwood, MO are fiduciaries. The primary reason lies in the fact that financial advisors can function under different regulatory frameworks and compensation structures, leading to differentiated standards of care:
- Regulatory framework — Financial advisors might be subject to various regulatory frameworks depending on their business model. For instance, Registered Investment Advisors (RIAs) are generally fiduciaries. In contrast, some advisors (for example, those within a broker-dealer model) work under the suitability standard, which demands investments to be suitable for clients but doesn't require the same duties of loyalty and care.
- Compensation structure — The manner financial advisors are compensated can influence their fiduciary status. Fiduciary advisors usually charge a proportional charge for their services, rendering their compensation clear and reducing conflicts of interest. Other advisors usually receive commissions or other forms 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 are required to abide by the Prudent-Person Rule, also 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 sensible person would purchase based on an acceptable risk in light of the client's goals and investment objective.
The prudent person rule originates in common law, and was later unified with the Uniform Prudent Investor Act. Each state can 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 consequences of investments
- The part that each investment or approach plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you own
- Your needs for readily available funds, 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 expected duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in Wildwood, MO
Choosing to partner with a fiduciary financial advisor in Wildwood, MO offers an array of benefits that can significantly influence your financial health:
- Fiduciary financial advisers are obligated to act in your best interest and maintain professional standards
- Full disclosure of pertinent materials and facts and full transparency regarding matters like risks, fees, and potential conflicts of interest, enabling you to make the most informed decisions for you and your Wildwood, MO family
- Manage investments on your behalf by leveraging their expertise to craft and handle 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 establish a custom approach
- Consistent monitoring and guidance to guarantee your financial strategies and investments continue to be in line and that you can adjust to any surprises the market or life gives your way
- Minimized risk with prudent and judicious investment choices taken by thoroughly assessing the risk tied to each investment and tailoring your portfolio to align with 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 situations change
Hire Correct Capital as Your Wildwood, MO Fiduciary Financial Advisor
Choosing a financial advisor in Wildwood, MO with a fiduciary standard is essential to guarantee your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who hold in high regard the financial success and peace of mind of Wildwood, MO individuals 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 necessary 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.
Reach out to us today at 877-930-4015 or contact us online to set up an appointment and discover how we can aid you attain your financial goals in Wildwood, MO.
