The following are key questions to ask before hiring a financial advisor:
- Do you have a fiduciary responsibility to keep my best interests at heart?
- How are you compensated? Do you have any incentives to recommend particular products over others? Do you or your firm receive any third-party compensation for recommending particular investments?
- What are the other expenses?
- What are your qualifications?
- How will our relationship work?
- What’s your investment philosophy?
- Who is your custodian?
- What tax hit do I face if I invest with you?
A fiduciary is a person or legal entity, such as a bank or brokerage firm, with the power and responsibility of acting for another (usually called the beneficiary or principal) in situations requiring total trust, good faith, and honesty. Yes, Retirement Capital Strategies is a fiduciary firm. We put your best interest first when offering any recommendations.
As Portfolio Managers, we have the highest level of responsibility and accountability to our clients, be they individuals, families, foundations, or institutions. The CPM Program equips us with the essential tools needed to become better portfolio managers. A CPM® title is earned after completing extensive coursework and examination through the Academy of Certified Portfolio Managers and Columbia University. The CPM® Program focuses on three vital areas: Valuation Analysis, Portfolio Construction, and Risk Management.
Retirement Capital Strategies (RCS) offers two types of services: Financial/Retirement Planning and Investment Management. Financial and Retirement Planning is complimentary to clients who are having their assets managed with RCS. For Investment Management, our fee is based on a percentage of assets under our management. It ranges from 0.55% to 1.75% annually based on account size. For standalone Financial and Retirement planning, we offer service on a project or hourly fee based on the complexity of the situation.
We have a soft minimum of $750,000. RCS, in its sole discretion, will charge lesser investment management and/or waive or reduce its minimum asset requirement based upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional assets, the dollar amount of assets to be managed, related accounts, account composition, negotiations with client, etc.)
When financial advisors refer to a retirement account, they are typically referring to a qualified plan that meets specific requirements set by the IRS and offers several tax advantages. The 401(k) and the Individual Retirement Account (IRA) are two examples of qualified retirement plans. Non-retirement accounts come in many varieties. They’re non-qualified, meaning the investor would be investing with after-tax dollars. Some examples are a 529 plan and a brokerage account.