What is the CFP® certification?
The CFP® (Certified Financial Planner) certification identifies individuals who have met rigorous professional standards and have agreed to adhere to principles of integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence when dealing with clients. To become certified, an individual must meet educational, examination, experience, and ethics requirements.
What is a CPA ?
A CPA is a Certified Public Accountant who is licensed by a state board of accountancy. To earn a CPA, one must demonstrate knowledge and competence by meeting high educational standards, passing an exam, and attaining a specific amount of general accounting experience. A CPA license is the accounting profession’s highest standard of competence, a symbol of achievement and assurance of quality.
Do you sign a confidentiality agreement with clients?
Do I have to have investments in stocks and bonds to be a client?
No, you do not. While investment management is one of our core services, we can still work with a client in other financial planning areas, including tax-planning, retirement planning, charitable giving, and estate planning strategies.
What is your business continuity plan? Do I work with one advisor or a team?
Our clients will typically work with one lead advisor, but our firm works as a team. Should something unexpected occur, you can feel comfortable knowing that another team member can pick up right where your advisor left off.
What services does marrick wealth not provide?
We do not sell insurance, provide legal advice, or prepare taxes.
Do you prepare tax returns?
We do not prepare tax returns, but we provide comprehensive tax-planning for our clients. Our advisors are licensed CPAs and have experience preparing many types of tax returns, but we leave the tax preparation to accounting firms. However, we are happy to help our clients select the right accountant for their situation.
What type of professionals do you typically coordinate with as part of a client’s advisory team?
We typically coordinate with a client’s accountant, attorney, insurance agent, and more. We can also provide contacts for our clients, should they be in need of a specific professional. We DO NOT receive referral fees from any other professionals.
Do you only work with clients in California?
No. While most of our clients reside within the state of California, we do have several out-of-state clients.
How do I know you will not steal my money (i.e. Bernie Madoff)?
As an independent firm, we use a third-party custodian to hold client assets. We currently use Charles Schwab and TD Ameritrade as custodian for our clients. Having your accounts at a third-party custodian adds an extra layer of protection for your assets.
Is Fee-Only the only fee structure? How do non Fee-Only firms charge their clients?
Other firms may use a commission-only or fee-based model to charge their clients. Fee-Based is a combination of the commission-only and Fee-Only models.
What fees do clients pay to marrick wealth?
We can collect fees in any of three ways: as a percentage of assets under management, as a flat fee, or on an hourly basis.
How are you compensated?
As a Fee-Only firm, we aim to minimize conflicts of interest between advisors and the investment solutions used for our clients. According to a NAPFA, a Fee-Only advisor is compensated solely by the client, and does not receive contingent payments or commissions from the sale of financial products.
Do you have a minimum fee?
We have a portfolio minimum of $1,000,000. We charge on assets under management for investment advisory, and/or flat-fee for wealth advisory (financial planning). For portfolios exceeding $2,000,000, we include all of our financial planning services and waive the wealth advisory fee; clients would only be subject to investment advisory fees in this scenario.
What is the difference between discretionary and non-discretionary investment authority?
Discretionary investment management is a form of investment management where trading decisions are made for clients at the portfolio manager’s discretion. Under non-discretionary investment management, trades must be discussed and approved by clients before taking place. Most of our client accounts are managed on a discretionary basis, but our clients are free to choose whichever option they prefer.
What does it mean to be a fiduciary? Are you a fiduciary for your clients?
A fiduciary is one who acts in utmost good faith, in a manner he or she reasonable believes to be in the best interest of the client. As a registered investment advisor, we act as fiduciaries to our clients. At marrick wealth, our advisors have an additional fiduciary standard of care as a result of holding CPA licenses and CFP® certifications.
What are separately managed accounts?
Similar to a mutual fund, a separately managed account is a professionally managed investment strategy that owns a basket of securities (e.g., stocks or bonds). Unlike a mutual fund, which pools the assets of multiple investors, a separately managed account is managed on behalf of only one investor, and therefore can be customized to meet the unique investment and tax objectives of that investor.
What is NAPFA?
The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors who are committed to working in the best interest of those they serve. All of our advisors are NAPFA-registered financial advisors, which is the highest level of membership. Each advisor in this category must satisfy several requirements, including: holding the CFP® certification, attaining a Bachelor’s Degree, participating in a peer review, and completing 60 hours of continuing education every 2 years.
What is the difference between passive and active strategies?
An indexed investment strategy seeks to track the returns of a market or market segment with no tracking error, before costs. In contrast, actively managed investment strategies seek to achieve a return or risk level that differs from that of a market-cap-weighted benchmark.