What is a fee-only Advisor?
An advisor who is “fee-only” cannot accept any compensation that does not come directly from the client for services provided. This means no referral fees from third parties, no upfront, back-end, or 12b-1 (mutual fund marketing) fees, no insurance or annuity commissions, no award trips, or any other material or significant incentives. This standard must be adhered to for all services provided to all clients.
Why is fee-only in important?
As an independent, fee-only Registered Investment Advisor (RIA), our clients benefit from our ability to offer unbiased advice and appropriate strategies to best achieve their financial goals. Since Futurity Capital is not affiliated with any brokerage chain or insurance company, we do not receive commissions on the products or services that we may recommend. As an RIA, we have a fiduciary responsibility to always put the interests of our clients first and to respect the trust placed in us.
What is the difference between a broker and an investment advisor?
Investment advisors are held to a fiduciary standard in all that they do. Brokers are only held to the much lower "sales suitability" standard of conduct in their dealing with clients. Stockbrokers are registered representative employees of broker-dealer firms. Stockbrokers are licensed to sell securities and other products and they are compensated based upon what they actually sell and the volume of their sales.
What is meant by a Fiduciary Standard?
This means that we are required to act solely in the best interest of our clients, even if that interest is in conflict with our own financial interest. RIAs must disclose any conflict of interest, or any potential conflict of interest, to our clients before and throughout a business engagement.
This requirement includes making a full disclosure of all compensation received, both the amount and the source not only of asset management or financial planning fees, but also of any commission, any "soft-dollar" arrangements, or any special incentives to recommend one product or service over another.
What does it mean to be a Registered Investment Advisor?
Investment managers and financial planners must be registered with either their state or the SEC as a Registered Investment Advisor. Because these financial regulators want all financial advice to be objective, anyone claiming to provide financial planning services must be registered as an RIA and is held to a Fiduciary Standard for those services. In order to become registered, the state and SEC demands a certain level of training and credentials for all personnel as well as demanding that the firm adhere to industry “best practices” in all matters.
What does it mean to be a Financial Planner?
Many firms represent themselves as financial planners but actually lack the necessary training, credentials and legal status to do comprehensive financial planning.
When choosing a planner, look for one with the CFP® designation. When asked about other professional designations, Paul Auslander, 2012 Financial Planning Association (FPA) president, reiterated that, the "FPA is coalescing around one designation for the financial planning profession. From our standpoint, the CFP® designation is THE standard because it has the rigor of enforcement, continuing education requirements, ethics, experience - and, as importantly, consumer confidence."
Does Futurity Capital hold my securities and cash?
No, all client assets are held by Interactive Brokers, our third party custodian and you will receive all of your account statements from Interactive Brokers.
As a client, what type of account access do I have?
In addition to quarterly investment reviews and regular performance reporting, clients can access their accounts via the Futurity Capital link to the custodian’s website 24 hours a day.
What portfolio insurance is available for clients?
As a Securities Investor Protection Corporation (SIPC) member firm, Interactive Brokers provides the standard $500,000 of net equity protection, including $100,000 covering claims for cash awaiting reinvestment.
Who is a typical client?
Futurity Capital has a wide range of clients, including individuals, professionals, executives, small business owners, widows, divorcees and families. While we have a particular focus on women, young professionals, young couples and "non-tradtional" couples, the typical Futurity client is seeking exceptional client service and a long-term partnership.
Do you have a minimum portfolio size?
Our current minimum portfolio size is $50,000.
How are fees calculated?
Quarterly advisory fees are based on the level of assets under our direct management. Planning fees can be hourly or by assignment. Fees are discussed and agreed to in advance and in writing.
What is the cost of an initial meeting with Futurity Capital?
Initial consultations are always complimentary. The first meeting lets us to get to know you and to determine if we can be helpful to you. It gives you the opportunity to ask questions and to get to know us as well.
How do you work with others such as my estate attorney and CPA?
We believe clients are best served when their advisors use a coordinated team approach, benefiting from the expertise each professional provides. Upon receiving your approval, we will coordinate with your estate attorney and accountant. If you do not have an established relationship we will be happy to refer you to a legal or accounting professional to address your needs.
Where can I find additional resources?
We have tried to list most of the well-known websites, publications and sources of reliable financial information on our website under "Useful Links".
How do I get started?
Please contact us today to schedule your complimentary consultation or call 540-441-7699.