FAQ's: Check some of the most commonly asked questions...

For Potential Clients

Q. Can't I do my own investment management?

A. Of course, there is an abundance of publicly available investment information, as well as firms that can execute your orders for a fair price. Many self-directed marketing firms will lead you to believe that you are better off on your own.

At Richard Brothers, we have a proven systematic process to manage our clients' investments. We have access to the latest investment information and know how to use it to lower portfolio risk and provide consistent returns. Our state-of-the-art tools enable us to continually monitor and balance portfolios, and we have a method to buy and sell securities to protect principal and maximize return. Many people prefer the peace of mind knowing that their investments are in good hands, freeing them up to spend more time doing the things they enjoy most.

Q. What can a financial advisor do that a traditional broker cannot?

A. Richard Brothers is a fee-for-service advisory firm, which means that we manage accounts in return for a percent of assets. We believe the interests of our clients are best served with this fee schedule, as we can make unbiased recommendations that are appropriate to each client's unique situation - we do not employ a one-size-fits-all investing approach. In some cases, we will work on a project or hourly basis if the situation warrants it. Our focus is on growing clients' assets and serving their ongoing financial needs. Most traditional brokers only get paid when they make a sale. If they do not have any reason to make a transaction, an account may not get reviewed in a timely manner.

Q. Why work with a family wealth management practice instead of a large trust company?

A. A smaller practice like ours can offer personalized service, one-on-one contact with an advisor, access to multiple managers (versus proprietary), and an understanding of the difficult financial matters that apply to wealthy families.

Q. How can a local firm compete with a larger firm?

A. Bigger is often not better. Many larger firms experience ongoing investment staff turnover, forcing clients to re-establish relationships with a new advisor. Richard Brothers Financial Advisors is privately owned and operated by the Richard Family, so we work directly with our clients to build lasting, dependable relationships.

Q. I get so many statements regarding my investment holdings. What can I do to consolidate them?

A. In 2000 Richard Brothers formed a broker dealer, Allegiance Capital LLC, with the goal of consolidating client investment assets and controlling trading costs. Our clearing firm, Pershing LLC, can act as custodian for a client's individual accounts and report on them in one consolidated statement. Richard Brothers utilizes reporting systems provided by Advent Axys. This enables us to provide our clients with consolidated reporting, tax reporting, asset mix reports, performance reports, etc.

Q. Is a 529 plan the best way to fund college expenses?

A. With the costs of post-secondary education continuing to rise, it is crucial to begin college planning early. The 529 plans available today are one way to implement a college savings plan. But there are other options and considerations, depending on your family situation and goals, and we would be happy to review those options with you.

Q. What can be done to minimize the tax implications of my investments?

A. Tax planning is a very important part of our implementation strategy. We can coordinate with a client's tax advisor to ensure the tax ramifications of investing are understood, and minimized. Many vehicles can be employed to reduce tax exposure, such as tax-free municipal bonds, tax-deferred annuities, retirement plans, and tax-managed funds, to name just a few. Making money is always a give-and-take situation with regard to taxes. We strive to find a balance you can be comfortable with.

Q. At what age should I set up a trust for my family?

A. In general, people tend to start looking into trusts in their late 50's. We believe it is most prudent to consider trusts when your net worth exceeds $1 million. This number is not difficult to reach when one considers real estate, investments, insurance, and/or a business. Estate plans should be reviewed every five years, unless major changes occur, such as selling a business, retiring, divorce, death in the family, or a move to another state.

Q. How do I transfer my accounts to Richard Brothers?

A. Our operations staff will prepare all of the transfer documentation you need to sign. These documents, called ACAT Forms or 1035 Forms, give us your permission to transfer the assets from existing custodians. It may take up to 10 business days to complete this process. We do the paperwork - you should not have to trouble yourself with speaking to each individual provider.

For Existing Clients

Q. When depositing funds to my Allegiance Capital brokerage account, who should the check be made out to?

A. "Pershing LLC" for deposits to accounts; for fees paid for Richard Brothers services rendered, "Richard Brothers"

Q. How can I check the balances in my account?

A. Account balances are provided on a monthly statement on a per-account basis. We also offer secure online access, available anytime. Reports in hard copy format can also be provided upon request.

Q. How can I set up check writing on my investment account?

A. Resource Checking is the name of the checking account that can be linked to your Allegiance Capital account. Click here for more information.

Q. If I want to receive all my statements in one mailing, what should I do?

A. We can set up this service, called a Statement Link, for you. All we need is your authorization.

Q. If I need to change a beneficiary on my IRA account, what should I do?

A. Fill out and submit a Change of Beneficiary Form.

Q. How can I set up systematic bill payment to another bank?

A. An ACH can be established to distribute funds to another banking institution.

Q. I am older than 70 1/2. What should I do to start my required minimum distribution (RMD)?

A. Complete and submit an RMD form (IRA Distribution Form).