Fiduciary financial advisor in Wildwood, MO. For those in Wildwood, MO who don't have the time, knowledge, or interest to oversee their investments and retirement accounts themselves, partnering with a financial advisor offers peace of mind. Trust is vital in that relationship, and whether you're preparing for retirement, looking to manage your wealth, or ensuring a stable financial future for your loved ones, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in Wildwood, MO, you'll gain a confidante 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 will never suggest a solution, investment, or approach that we don't sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and act with your best interest at heart, call Correct Capital today 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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Understanding Fiduciaries
A fiduciary is a individual or organization that holds a role of confidence and duty when handling assets, monetary matters, or legal matters for another person. Fiduciaries are legally and ethically bound to work in the best interests of the individual or entity they are serving, 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 — People or entities charged with handling and monitoring assets held in a trust for the gain of beneficiaries.
- Executors — People chosen to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who give financial advice and handle investments for clients, with an responsibility to prioritize 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 — Individuals designated by the court to make decisions on behalf of minors or persons who are not able to make decisions for themselves.
- Attorneys — Legal professionals who are obligated by a fiduciary duty to act in the best interests of their clients when handling their legal affairs.
- Real estate agents — Specialists who assist 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 elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries are obligated to act in "good faith," which means they engage with their clients or beneficiaries with integrity, with genuine intention, and without any intention to mislead or infringe upon the interests of their beneficiaries. They must always act honestly and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client, which means they must put first the beneficiary's interests ahead of their own. They should eschew any conflicts of interest that might jeopardize their ability to act only in the client's best interests. All conflicts of interest must be disclosed to the client or beneficiary and the advisor must still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to employ the level of care, skill, and diligence that a prudent person would use in comparable circumstances. They must make informed and thoughtful decisions when overseeing assets or deciding on behalf of their client or beneficiary. This duty confirms that they do their best to protect and grow the assets under their care while mitigating risks.
What Is a Fiduciary Financial Advisor in Wildwood, MO?
Financial advisors help Wildwood, MO individuals, families, and business owners realize their life goals as they relate to their finances. These services include investment recommendations, retirement consulting, tax planning, estate planning, portfolio management and more.
Anyone in Wildwood, 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 necessitate continuous education and a rigorous moral standard.
To illustrate, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification must 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 Wildwood, MO Fiduciaries?
Not all financial advisor in Wildwood, MO are fiduciaries. The key 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 distinct regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are usually fiduciaries. On the other hand, some advisors (for example, those falling under a broker-dealer model) operate under the suitability standard, which requires strategies to be fitting for clients but does not mandate the same level of fiduciary duty.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a proportional charge for their services, making their compensation transparent and limiting conflicts of interest. Non-fiduciary advisors usually receive commissions or other forms 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, 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 select investments that a reasonable person would purchase considering an acceptable risk considering 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 might apply their own particular laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- Overall 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
- Other assets and resources you have
- 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 Wildwood, MO
Deciding to work with a fiduciary financial advisor in Wildwood, MO brings to the table an array of benefits that can significantly impact your financial health:
- Fiduciary financial advisers must act in your best interest and uphold professional standards
- Complete disclosure of pertinent materials and facts and full transparency concerning issues like risks, fees, and potential conflicts of interest, permitting you to make the best decisions for you and your Wildwood, MO family
- Make investments on your behalf by leveraging their expertise to develop and handle a diversified portfolio that matches your financial goals and risk tolerance
- Thorough financial planning and a well-rounded approach to your financial well-being, evaluating all facets of your financial life to devise a personalized approach
- Ongoing monitoring and direction to guarantee your financial strategies and investments continue to be in line and that you can modify to any curveballs the market or life gives your way
- Reduced risk with prudent and accountable investment choices done by meticulously assessing the risk associated with each investment and tailoring your portfolio to align with your risk tolerance
- Assurance that your best interests are being cared for by knowledgeable financial advisors
- A prolonged relationship with a fiduciary financial advisor that grasps your financial goals evolve over time, and life conditions modify
Choose Correct Capital as Your Wildwood, MO Fiduciary Financial Advisor
Choosing a financial advisor in Wildwood, MO with a fiduciary duty is crucial to guarantee your long-term interests stay protected. At Correct Capital Wealth Management, we are honored to be fiduciary financial advisors who place at the forefront 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 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.
Reach out to us now at 877-930-4015 or contact us online to set up an appointment and learn more about how we can aid you reach your financial goals in Wildwood, MO.