What do you do exactly?
- Regal Wealth Group is a fee-only, SEC Registered Investment Advisor specializing in advising retirees, corporate professionals and business owners. For a new relationship, our bread and butter is helping you roll over and invest your IRA(s), 401k(s) and pension plan(s). Our typical client is close to or in retirement and looks to us for investment advice and wealth management including estate planning and tax minimization strategies.
- We start the process by understanding your needs and goals as well as what assets and income you have to meet your investment objectives. We develop a plan that considers your tolerance to risk by creating a diversified portfolio to meet your current income needs and future goals. Every action we take is done in conjunction with your estate plan and tax reduction strategy. If you do not have an estate plan, we can help you create one. If you have your estate plan in place, we look forward to working with your estate planning professional.
- After the initial plan is complete, our work has just started. We meet with you regularly by phone, video conference or in person. We provide monthly statements and quarterly performance reports, and your daily (and intraday) balances are always available on-line. Between meetings, we continuously monitor your investment portfolio to ensure we are meeting your investment objectives.
What types of services do you provide for your clients?
- We offer traditional, fee-only investment advice and wealth management. We do not charge commissions nor do we charge extra to meet in person or talk on the phone. Our core competency is providing objective financial advice and investment management throughout your retirement. We incorporate wealth management advice by considering all relevant aspects of your financial objectives including estate planning and retirement income analysis.
Why should I choose you over another advisory firm?
- First, our services should match what you are looking for in a financial advisor. We specialize in comprehensive wealth management for those in retirement or about to retire. Most of our clients place a tremendous value on their time. They prefer having us manage their financial affairs, keep abreast of current tax and estate planning law and regulations and be available for the inevitable problem-solving issues that arise.
- We feel it is important that you understand there are generally three investment models used by companies or individuals offering financial products and advise.
- Commission Only
- A salesman that is only compensated by commission may, for example, be a stock broker (registered representative) or an insurance agent. A stock broker goes by several names including stock broker, financial consultant, financial advisor, registered representative, etc. The standard of care for the stockbroker is called suitability. The stock broker and insurance agent may sell you an investment product offered by their employer. The standard of care for an insurance varies by state. Generally, the standard of care is lower than the suitability standard. Some consider the standard of care of an insurance salesman as buyer beware.
- A fee-based financial consultant is compensated by commission when offering a commission product (including the proprietary products offered by their employer) and the same financial consultant may be compensated by a fee when they are acting in the role of investment advisor. When they are acting as an investment advisor they are a fiduciary where they must act in your best interests. If they are “selling” a product as a registered representative, the financial consultant does NOT have to act in your best interests. The financial consultant has a suitability requirement where they can sell you an investment as long as it is suitable for you. Your challenge is to know when a financial consultant has your best interest in mind or are they “selling” you a product (or both).
- Regal is a fee-only advisor. A fee-only advisor provides the highest standard of care as a fiduciary. The advisor must act in your best interests and my not receive a commission for any product or service. We have no financial incentive to recommend one security over another. All conflicts are disclosed in our ADV Part II. Our ADV Part II is available upon request.
- Second, the goal of our investment process is to provide strategies for investors seeking risk management and consistent performance. It's a disciplined, diversified, and low fee approach that has been tested over time by some of the world's largest pension plans and private investors.
- Third, it is crucial that you trust us and feel comfortable working with us as your advisor. The advantage you gain by working with our company is you will get to know us as well as we will get to know you. Our clients are like our family.
Who is your typical client?
- Most of our clients are corporate professionals or business owners with significant savings in retirement accounts such as 401(k)s and IRA(s), pension(s), stock options, and personal investments. We work with individuals and families who are near or in retirement and who are looking for an advisor to help them plan for retirement, preserve their wealth and assist in planning strategies to pass on a legacy to their heirs.
What is the minimum amount I must invest to work with you?
- $250,000. Our ideal client will typically have an investable net-worth of $250,000 to $10 million dollars. In certain circumstances this minimum may be waived.
How are you paid?
- We are paid strictly on a fee basis. We do not receive any commissions from third-parties. Our fee is calculated based on the assets under management at the end of each quarter, charged in arrears. Because our fee is calculated based on the value of your account(s), we have an incentive for your account to grow. We believe this compensation arrangement allows us to sit on the same side of the table with you, allowing us to give unbiased advice to objectively buy and sell securities in your portfolio. We do not charge a fee, commission or penalty to open or close an account. There are no annual fees or inactivity fees.
Are you a fee-only or a fee-based advisor?
- Regal is a fee-only advisor. By design, we are NOT licensed to SELL any investment nor can we accept any form of commission. For comparison, a fee-based financial consultant is licensed to receive a fee as an investment advisor and a commission as a registered representative (stock broker). When acting in the role of a registered representative (stock broker) the financial consultant sells investment products on behalf of their broker/dealer. As a fee-only advisor, we have one standard of care. We are a fiduciary which means we must always act in your best interest, have a duty to disclose conflicts of interests, actively attempt to eliminate conflict of interests and never accept a commission under any circumstances.
Do you have a financial incentive to offer certain investment products?
- As a fee-only advisor, we offer clients unbiased and objective advice. We have no financial incentive to push any financial products and we have no proprietary products. We have a fiduciary obligation to act in your best interest.
Are there any fees, other than your management feeds, if we work together?
- In addition to our quarterly management fee, there may be a fixed charge for buying or selling stocks, bonds and some funds, which is paid directly to the custodian. If you purchase exchange-traded funds, traditional mutual funds or closed-end funds, you will have ongoing management fees payable to the fund management companies. These fees and any other fees are outlined in each fund’s prospectus. If a mutual fund is appropriate, we only purchase "no-load" funds.
What is the process for opening an account with your firm?
- After one or two meetings, we will generally provide an overview of your present financial portfolio along with a summary of our recommendations. Once you are completely comfortable with our program and recommendations, we will fill out paperwork to open a new account. Opening the new account(s) is just the beginning of our relationship. We will map out a program to ensure we tackle your wealth management concerns in a logical and methodical way.
Where is my money held if I work with you?
- To be clear, there is never a time in our relationship where we are in possession of your funds. Your assets will be held at a custodian such as Fidelity. With your authorization, Regal, as your advisor, is authorized to give instructions to the custodian in accordance with your investment objectives. Your monthly and quarterly statements ALWAYS come from the custodian and the custodian provides online access to your account(s).
Are you able to make withdrawals from my account without my permission?
- No. We are only able to instruct the custodian to send funds from your account to another account in your name. We can facilitate the distribution of your funds to a third-party only with your signature and a letter of instruction. Depending on your needs, you may also choose to have checking privileges or a debit card on an investment account. IRA fund distributions may require your signature. You can always set up a periodic distribution where distributions are automatically deposited in your bank account. Our staff is available to help you facilitate such transactions.
What is the process for opening an account with your firm?
- After one or two meetings, we will generally provide an overview of your present financial portfolio along with a summary of our recommendations. Once you are completely comfortable with our program and recommendations, we fill out paperwork to open your new account. Opening the new account(s) is just the beginning of our relationship. We will map out a program to ensure we tackle your wealth management concerns in a logical and methodical way.
How do you decide what my overall asset allocation should be?
- Your overall asset allocation will depend on several factors: 1) your tolerance for risk 2) your financial objectives 3) your investment time horizon. Once we identify these factors, we create your customized investment portfolio. Going forward, we provide continuous management so as conditions change with you or the economy etc., your portfolio may change.
How often do you make changes to my portfolio?
- We may advise changing your portfolio’s allocation if your financial situation changes or if the financial markets warrant making a change. We generally rebalance portfolios (if warranted) on a quarterly basis. We are careful not make portfolio changes too often and of course custodian transaction fees and taxes must always be considered beforehand.
How often do we talk and/or meet?
- This is really up to you. We typically like to do an account review with clients no less than annually. We find some clients like to touch base each quarter, while others prefer only on request. In general, we meet quite a bit in the beginning of the relationship as we get your affairs in order. We are always available to meet at times when something arises that requires immediate attention, such as the purchase of a large asset. We also find it necessary to meet after the death of a spouse or loved one. We frequently interact in person, by phone or via e-mail or a combination thereof on an ongoing basis.
What sort of portfolio reporting do you provide clients?
- Regal provides quarterly performance reports. Your custodian Fidelity will send monthly statements (if there is investment activity) and always quarterly statements. You can choose to receive your statements by mail or electronically. Fidelity also provides year-end tax reporting. Your account information is always available on-line.
Do you help me with tax reporting or estate planning issues?
- Yes. As mentioned earlier, the custodian will provide you with detailed tax reporting. We also have relationships with several CPAs and estate planning attorneys who can help with your tax and estate planning needs should you need a referral.
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