The fiduciary promise
What ‘fiduciary’ actually means
The word gets used loosely. Here’s what it concretely means at Cornerstone — and what makes it different from the alternatives.
The standard
What being a fiduciary requires
Best interest, always
Every recommendation must be in your best interest, not ours. By law. Without exception. On every decision, on every account.
Disclosed conflicts
Any conflicts of interest are disclosed in writing in our Form ADV. We have very few; what we have is transparent.
Reasonable fees
Our fees must be reasonable for the services provided. We benchmark our fees to industry data.
Duty of care
We must understand your situation deeply before recommending action. Cookie-cutter advice violates the standard.
Duty of loyalty
Our loyalty is to you, not to any product company, custodian, or other firm.
Held to it legally
Violations are actionable. The SEC enforces. Your remedy is clear.
The contrast
Why this matters more than people realize
- Most retail "financial advisors" are registered representatives at broker-dealers — held to a "suitability" standard. They must recommend things that are suitable for you, but not necessarily best for you. The difference looks small on paper and is huge in practice.
In practice
What this looks like at Cornerstone
Annuity recommendations
Most retail advisors get paid 6%+ commission for selling certain annuities. We almost never recommend annuities. When we do, we use no-load fee-based products only.
Insurance products
We don’t sell life insurance, disability insurance, or long-term care insurance. We refer to independent brokers and review existing policies for fit.
Proprietary funds
We don’t have any proprietary funds. The funds we use are from independent companies (Vanguard, DFA, etc.) selected on merit, not relationship.
Outside fees
We don’t accept referral fees, soft dollars, or revenue share from any third party. The only money we receive is our direct fee from you.