Planning for Every Age, Every Stage
Guidance Through Uncertainty
Retire With Confidence
Welcome to CB Capital
Financial matters for many people can be intimidating, complicated, very personal, and have an outsized impact on the achievement of their life’s goals and their ultimate happiness. At CB Capital, we take very seriously the trust and responsibility that individuals, families, small business owners, and trustees place with us and the services that we provide.
We offer comprehensive financial services and specialized automotive reinsurance services in a fee-only fiduciary capacity.
Our pledge to you is that we will work tirelessly and with integrity to help you achieve your goals. We will also take great care to handle all of your financial matters with confidentiality, transparency, and professionalism.
WHAT is a fiduciary?
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interest ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other’s best interests.
SOME INDUSTRY BACKGROUND
There are three (3) different types of financial advisors in the industry, brokers, Registered Investment Advisors (RIAs) and dual-registered advisors. There are two (2) primary criteria that differentiate them:
1. The legal standard they must meet with their recommendations
2. How they are compensated
A broker (also called a registered representative) is a financial advisor that works for a broker/dealer such as, Merrill Lynch or Morgan Stanley, or an insurance company, such as Prudential. They are paid a commission or a fee for selling products to their clients. By law, their recommendations do not have to be in the best interests of their clients. They only have to offer a “suitable” product, not what they think is best. The result is a significant conflict of interest in which clients can end up with products that paid the highest commission or fee to the broker while technically still being deemed “suitable” for the client.
RIAs are legally required to place the interests of their clients ahead their own and those of their firm. Always acting in their client’s best interests is known as the fiduciary standard. They generally operate under a fee-only or retainer structure that is disclosed to the client upfront and often based on assets under management. The fee is not related to the specific investments selected.
Dual-registered financial advisors (also called hybrid advisors) are advisors that are registered as both a non-fiduciary brokers and as fiduciary RIAs. They can offer financial advice for a fee, but they can also sell investment products for which they receive sales commissions and incentives.
These types of financial advisors have the freedom to switch between fiduciary and non-fiduciary roles at will, and they are not obligated to inform the client when they do so. This can even happen within the same meeting. This is obviously a concern for clients because it is unclear whether they are receiving advice that is in their best interest.
In many cases, a financial advisor will operate as a fiduciary when providing a financial plan to a client, but then put on their broker hat when it comes to implementing the plan. The financial advisor is then free to choose the investment products that pay the highest commission while still meeting the suitability standard.
Approximately 90% of the financial advisors in the US are either registered as brokers or are dual-registered hybrid advisors while only 10% are independent RIAs.
THE CHOICE IS CLEAR
With the complexities, personal nature, and outsized impact of your financial matters, the clear choice is to work with a financial advisor who operates under the fiduciary standard at all times. A financial advisor who is always acting in your best interest becomes a valuable partner to you, your family, and/or your business.
As an independent RIA, CB Capital operates as a fiduciary with 100% of our clients, 100% of the time.