Solutions for intelligent Wealth Creation and Management Solutions for intelligent Wealth Creation and Management
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  Frequently Asked Questions  
  Why should I choose a financial advisor that is a fiduciary?

How difficult is it to find an independent financial adviser that is also a fiduciary?

Why is the fiduciary standard necessary?

How much experience should independent financial advisors have before I choose to work with them?

How long has Capital Management Resources, LLC been in business?

How experienced is Randolph V. Glein?

What is the minimum size portfolio you accept?

How do you work with clients that are not local?

How does Capital Management Resources, LLC make money?

Do you guarantee any rate of return for my investments?

How will I know you have made changes to my account and how will I keep up with the progress of my investments?

How often will I receive reports about the progress of my investments?

Am I locked-in? Are there termination penalties, if I decide to do something different with my money in the future?

I have a question that wasn’t listed above. How can I get an answer?

 
  Why should I choose a financial advisor that is a fiduciary?

Fiduciary – A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profit.

Fiduciaries (also known as registered investment advisors) are held to the highest ethical standards in the industry. They are the only professionals who can provide financial advice and services for fees. They are required to place your interests above their own. This helps ensure there are very few if any conflicts of interests. They must also disclose how they are going to be compensated up front.

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  How difficult is it to find an independent financial adviser that is also a fiduciary?

Quite difficult…fiduciary advisors make up less than 10% of the financial services industry. Therefore, 90% of financial advisors have no legal obligation to act on your best interests. Nearly anyone, from brokers to uncertified accountants, can call themselves a financial advisor, financial planner, or financial consultant.

An eye opening statistic was found recently by a research firm that specializes in asset management trends. Cerulli Associates found that only 23,000 individuals are registered investment advisors out of approximately 250,000 investment advisors in the United States. The vast majority of those investment advisors consist of sales representatives working for their firm, not for you.

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  Why is the fiduciary standard necessary?

Now more than ever, investors need guidance when planning their investments and they need a professional whom they can trust. The investment adviser is required as a fiduciary to act, under the Investment Adviser Act of 1940, as a medical doctor would, completely in their clients’ best interest.

By stark contrast, the “arm’s length” suitability standard allows a broker or advisor to recommend what are in best interests of the firm. If an investor is wronged by a broker, the burden is on the investor to prove the broker’s wrongdoing; if the investor is wronged by a fiduciary advisor, the burden is on the advisor to prove they acted in the client’s best interest.

The Committee for the Fiduciary Standard was formed in June 2009 by a group of investment professionals and fiduciary experts. Policymakers and industry leaders were reviewing the aftermath of the financial crisis, to advocate that all investment and financial advice be provided as fiduciary advice and meet the requirements of the five core fiduciary principles.

The Committee developed Five Core Principles:
  1. Put the client's best interest first;
  2. Act with prudence - that is, with the skill, care, diligence and good judgment of a professional;
  3. Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts;
  4. Avoid conflicts of interest; and
  5. Fully disclose and fairly manage unavoidable conflicts of interest in the client's favor.
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  How much experience should independent financial advisors have before I choose to work with them?

We suggest ten years minimum. It is best to find someone who has worked through a full market cycle and a severe bear market. It comes down to this - you are paying a wealth advisor for their experience or you are paying an inexperienced advisor to learn with your money. Experience is gained by living through dramatic market conditions over many years, which give you the depth of experience to be prepared for future trouble spots in the market.

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  How long has Capital Management Resources, LLC been in business?

For more than fifteen years, Capital Management Resources, LLC has been serving clients. This goes back prior to the Internet Bubble of 2000-2001, the tragedy of 9/11, the Financial Crisis of 2008-2009, wars, currency crisis', etc. Through it all, day by day, we've stood by our clients and safely guided them toward their future.

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  How experienced is Randolph V. Glein?

Randolph purchased his first securities while in high school (1972) and started his IRA over thirty years ago and has extensive investment management experience to guide his clients.

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  What is the minimum size portfolio you accept?

$100,000 is the minimum portfolio size that will receive value from working together with us. Less than this and we will suggest you consider becoming an investor in the mutual fund we advise.

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  How do you work with clients that are not local?

We are able to work with clients through phone conferences and by e-mail.

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  How does Capital Management Resources, LLC make money?

We are a fee-only Registered Investment Advisor firm and paid directly by our clients. The fees are based on a percentage of our clients' assets under management, or an hourly charge for smaller accounts. We prefer to be paid only by our clients so that we share the same interest in growing your investments. Many investment advisers are paid by commissions or paid by a third party which creates a conflict of interest.

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  Do you guarantee any rate of return for my investments?

No, it is illegal for a Registered Investment Advisor firm to guarantee returns.

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  How will I know you have made changes to my account and how will I keep up with the progress of my investments?

You will receive a statement directly from our firm every quarter. In addition to this, you will also receive your monthly account statements from TD Ameritrade.

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  How often will I receive reports about the progress of my investments?

All of your funds are held in your name at TD Ameritrade or at the custodian of your qualified plan. When we make a trade in your portfolio, a confirmation will be sent to you directly by the custodian. In addition, TD Ameritrade will send you a month statement summarizing all account activity for the month. Capital Management Resources, LLC prepares and sends you a quarterly statement summarizing your investment performance for the quarter and year to date period.

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  Am I locked-in? Are there termination penalties, if I decide to do something different with my money in the future?

No, there are no barriers to exit a relationship with Capital Management Resources, LLC. It can be terminated at any time by written notice. There are no forced liquidations, termination fees, back-end loads, redemption fees or other charges associated with the termination of an advisory relationship with our firm. The custodian, TD Ameritrade may have normal transfer charges, if you are moving your funds to another custodian.

We charge a simple annual fee that is pro-rated by the quarter. You will only ever pay for the advice and management you have already received - never in advance, like commission based salespeople. This also gives you complete flexibility when planning your future.

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  I have a question that wasn’t listed above. How can I get an answer?

Please email your question to us at rglein@capmanr.com. Or call us at (360) 876-7743

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Capital Management Resources, LLC
1620 Bay Street
Port Orchard, WA 98366
(360) 876-7743 ph. (360) 876-9460 fx.
rglein@capmanr.com