Find a Financial Advisor in Missouri

Missouri taxes are modest, but not uniform

Missouri sits in the middle of the country and its tax system reflects that. According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, the median household income is about $70,702, per capita income is about $39,695 and the median home is valued near $230,300, which is well below the national picture. About 32.4 percent of adults hold a bachelor’s degree or higher, and roughly 17.9 percent of residents are 65 or older. Housing is affordable by coastal standards, so many households can save more of each paycheck than their counterparts in other regions.

The state income tax is graduated, and the top rate has come down in recent years. Social Security is not taxed by the state, and there is no estate tax or inheritance tax. Missouri does not have a state gift tax either. The wrinkle is that the biggest cities add their own layer, so two people with the same salary can take home different amounts depending on which side of a city boundary they live or work.

Rates and rules change often, so confirm current figures with the Missouri Department of Revenue or a tax professional.

Two metros, one state line each

St. Louis and Kansas City are the state’s financial anchors, and each straddles a state border. The Kansas City area spans Missouri and Kansas, with Johnson County, Kansas just across State Line Road. The St. Louis area spreads into the Metro East communities of Illinois, such as Belleville and Edwardsville. A couple living in Overland Park while one spouse works in downtown Kansas City, Missouri deals with two state income tax systems and the city earnings tax. Residents of two states file in both, and one state usually gives a credit for tax paid to the other. A planner or tax preparer who has handled these cases can keep the filing clean.

The city earnings tax applies to wages and net business profits, not to pensions, Social Security or investment income. That detail matters for retirees: a person who stops working stops paying it. It also shapes decisions for remote workers, who may owe the tax on days worked inside the city depending on the employer and the rules. Ask your payroll office how withholding is set up.

The employers that shape household finances

Missouri’s economy is broad. Boeing builds fighter aircraft and defense systems in St. Louis, Anheuser-Busch brews there, and Emerson, Centene, Edward Jones and BJC HealthCare are major employers in the region. Washington University and Saint Louis University anchor education and research. In Kansas City, Oracle Health, which grew out of Cerner, along with Hallmark, health systems and a growing logistics sector provide work, and the Ford plant in Claycomo builds vehicles. General Motors assembles vehicles in Wentzville. Springfield has hospitals, Missouri State University and Bass Pro Shops. Columbia pairs the University of Missouri with MU Health Care, and Jefferson City runs on state government. Fort Leonard Wood and Whiteman Air Force Base bring military families. Farms raise soybeans, corn, cattle, hogs and, in the Bootheel, rice and cotton. Branson and the Lake of the Ozarks live on tourism.

A nurse in Springfield, a welder in Wentzville, a corn and soybean grower near Marshall and an engineer at a defense contractor all earn very differently and plan differently.

What financial advisors in Missouri do and cost

A financial advisor helps organize savings, taxes, insurance and investments around goals you set. Some work on a flat fee for a written plan. Others charge a percentage of the assets they manage, commonly near 1 percent a year, often less on larger balances. Some earn commissions on insurance or annuities. None of these models is automatically right, but you should know which one you are paying for. Our financial advisors guide explains the differences.

Wealth management in Missouri

Wealth management ties investments, taxes, insurance and estate planning together for households with more to coordinate. In Missouri that often means a family farm or a business with a succession question, a concentrated holding in an employer’s stock, rental property or a lake house. Because the state has no estate tax, the focus shifts to federal rules, smooth transfer and fairness among heirs. Missouri allows a beneficiary deed on real estate, which can pass land outside probate when it is used correctly. Our estate planning guide covers the basics.

Financial planners in Missouri

A financial planner builds a written plan that covers cash flow, debt, savings goals, insurance and retirement. Younger Missouri families often start with the basics: an emergency fund sized for a tornado or hail deductible, steady 401(k) saving and a plan for student loans. The state’s 529 plan, called MOST, offers a state income tax deduction on contributions within limits, so confirm the current rules. Our budgeting guide is a good first stop.

Retirement planning in Missouri

Missouri is friendly to retirees on tax. Social Security is not taxed by the state, and some pension income can qualify for exclusions that depend on income and filing status. Teachers in the Public School Retirement System, school staff in PEERS, state workers in MOSERS and local government employees in LAGERS often have a defined benefit pension and a choice of survivor options at retirement. Choosing between a larger payment and one that protects a spouse is a one-time decision worth a careful look. Our retirement planning guide walks through income sources.

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Life insurance in Missouri

Life insurance replaces income and pays debts if a breadwinner dies. Term policies cover a set number of years and cost the least for a large benefit, which suits a young family in Lee’s Summit or O’Fallon with a mortgage and children. Permanent policies last for life and build cash value at a higher premium. Farm and business owners sometimes use insurance to fund a buy-sell agreement or to give heirs cash so the operation does not have to be sold. The Missouri Department of Commerce and Insurance licenses agents and takes complaints. Our life insurance guide explains the types.

Investment advisors in Missouri

An investment advisor builds and manages a portfolio, rebalances it and helps with taxes on gains. Registered advisors owe clients a fiduciary duty, which is a legal obligation to put client interests first, while brokers are held to a different standard on commissioned products. St. Louis is home to several national investment firms, so residents often meet a wide mix of advice models. Ask how the person is paid and read the firm’s Form CRS. Our investing basics guide covers diversification and costs.

How to choose a financial advisor in Missouri

1. Ask whether the advisor is a fiduciary at all times, and get the answer in writing.
2. Look up the person and the firm in the SEC adviser database and with the Missouri Secretary of State’s Securities Division.
3. Find out how the advisor is paid and the total yearly cost in dollars.
4. Ask about experience with households like yours, such as farm owners, public pension members or couples who cross a state line for work.
5. Meet two or three before deciding, and walk away from anyone who pushes a product on the first call.
6. Make sure phone and video meetings are available, since many advisors work across the state remotely.

Planning differs across the state

The Ozarks, with Springfield, Branson, Table Rock Lake and the Lake of the Ozarks, draw retirees and second-home buyers, and short-term rental income there brings its own tax and insurance questions. Columbia and Jefferson City lean on the university and state government, where pensions and stable pay shape plans. In the northern and western counties, farm income swings with crop prices and weather, so averaging income and keeping cash reserves are common themes. The Bootheel in the southeast sits near the New Madrid seismic zone, and standard homeowners policies exclude earthquake damage, so owners there should ask about a separate policy. Joplin knows what an EF5 tornado can do, since the 2011 storm destroyed much of the city, and Missouri river towns have lived through repeated floods. A good advisor asks where you live before offering advice.

Weather, ground and the gaps in a policy

Tornadoes and large hail are routine in Missouri, and many insurers apply a separate percentage deductible for wind and hail. A one or two percent deductible on a $300,000 house means $3,000 to $6,000 out of pocket, so build that into your emergency fund. Flood damage is excluded from homeowners insurance, and those near the Missouri, Mississippi and Meramec rivers should check a flood map and consider a separate policy, noting that most flood policies have a waiting period. Much of the Ozarks sits on limestone with caves and sinkholes, and standard policies often limit sinkhole coverage. If a private insurer declines your home, the Missouri FAIR Plan is a last resort for certain property coverage, though it is usually costly.

Missouri financial planning guides

Frequently asked questions