FAQ

FAQ

What does it mean to be a fiduciary?

As a fiduciary, we are legally bound to act solely in the interests of our clients. In finance, the fiduciary standard is the single highest standard of care in an asset manager/client relationship. We take this obligation very seriously, and to that end, we have built our business purposely in a structure that is maximally beneficial to our clients.

What do fee-only and RIA
mean?

As a Fee-Only financial advisor we are only paid by the fee that our clients pay us. This means we don’t receive any commissions or referral fees for recommendations of financial products or services we give to our clients. By working with an advisor who is Fee-Only you know for sure that you will be receiving objective financial advice. Someone who is Fee-Based may work for a fee but also has the ability to receive commissions, it’s difficult for you to be sure how much you are really paying for advice with a Fee-Based or commissioned based financial advisor. RIA stands for Registered Investment Advisor, as a registered financial advisor with New York, New Jersey, and Connecticut, we have a fiduciary obligation to put our clients’ interests above our own. A financial advisor who is not an RIA is working more like a stock broker and is considered a registered representative of a larger firm and does not have a fiduciary obligation to put the clients’ interests first.

Who custodies my assets when
I am a client of RGA?

All assets are custodied at our third-party broker clients. We use TD Ameritrade Institutional as our management platform, because TD Ameritrade has an outstanding balance sheet and low transaction costs. Your account is in your name, with your own login access, we simply build the strategy and execute on it for you. At no point do assets ever end up within our custody.

How does RGA get paid?

We are a “fee-only” advisor which means we get paid a fixed percentage of the assets under management in your account. We do not sell a single product and do not engage in any commission-based business. Clients do pay brokerage transaction fees, which are charged by TD Ameritrade, however we purposely use TD Ameritrade because of their low-cost structure. Combined with our very low turnover (we make as few transactions as possible on an annualized basis), these transaction fees have little impact over the long-run.

How accessible is my advisor at RGA?

We pride ourselves on being available to our client’s needs. Communication is immensely important and everyone is free to speak with the Advisor making the actual decisions on your accounts.

Do RGA partners invest their own money
the same way as they do for clients?

Each of the RGA partners invest in the very same securities that our clients do, based on the same principles.

Does RGA perform its own research?

All investment research is done in-house at RGA. We diligently inspect each potential investment to determine whether its risk/reward profile fits our clients’ needs.

How do I know my money will be safe?

Your investments are held with our third party custodian, TD Ameritrade. We never custody any of your investments. As your fiduciary, we can only execute trades in your account and bill for our services. We never have the ability to withdraw your investments. You will receive two sets of statements: one from TD and one from us.

Will my money be safe at TD?

TD Ameritrade, our custodian, is a member of the Securities Investor Protection Corporation (SIPC). The assets you have with TD Ameritrade are insured by the SIPC up to $500,000 for each separate account, including up to $100,000 in cash. TD Ameritrade is 45% owned by Toronto Dominion Bank one of the few AAA rated banks in the world. Unlike most of the other large brokerage firms, TD Ameritrade did not take any TARP money from the government in 2008/2009.

Are RGA’s fees tax deductible?

Yes, with certain limitations. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on a personal tax return.