Terminology

Q: What does wealth management mean?

A: Wealth management is a professional service which is the combination of financial, investment, tax, and estate planning advice. It involves working with clients to increase, protect, and distribute their wealth.

RBCM is a wealth management firm that builds long-term, consultative relationships.


Q: What does the term “investable assets” mean?

A: Investable assets include all liquid financial assets (e.g. brokerage accounts, retirements accounts, trusts, etc.) that we can invest on your behalf. It does not include money tied up in a home or business.


Q: What does "fee-only" mean?

A: "Fee-only" refers to the method of compensation for the financial advisor/planner. Fee-only advisors are compensated solely by the advisory fees paid by their clients and do not accept commissions. Fee-only advisors believe there is a significant conflict of interest if an advisor stands to gain financially from the purchase of any product he or she recommends to the client. RBCM is a fee-only investment advisor.


Q: What does fee transparency mean?

A: Fee transparency refers to the transparent fee disclosures to clients. RBCM practices fee transparency by identifying what fees a client pays to us. We disclose these costs on an invoice.


Q: What does discretion mean?

A: Discretion means having authorization to trade in a client’s account without the client’s permission for each transaction. RBCM uses discretion with Investment Advisory clients to implement their Investment Policy Statement.


Q: What does custodian mean?

A: The custodian is the entity in possession of the client's assets. RBCM does not have custody. Our primary custodian is Charles Schwab & Co.

 

Firm Overview

Q: When was RBCM founded?

A: We were founded as an independent, employee owned, fee-only firm in 2001.


Q: How are you compensated?

A: We are a fee-only firm, which means that we receive compensation solely from the advisory fees paid by our clients. We do not receive commissions of any kind. The compensation we receive for investment management is based on a percentage of the assets we manage. The fee is quoted as an annual percentage fee and is invoiced quarterly in arrears.


Q: How do you differ from banks, brokerage firms, and/or other financial advisory firms?

A: As a matter of law, RBCM is an SEC registered, fee-only Registered Investment Advisory firm. We are not a broker dealer. We differ from larger firms and other financial advisory firms in a number of ways. First we are compensated exclusively by fees paid by our clients thereby allowing us to work in our clients’ best interests and solely for them. Unlike our competitors -- who may receive the bulk, if not all, of their compensation from commissions on the products they recommend, we accept no other compensation. In addition, many times when you are working with a fee-based or commission-compensated individual, there are hidden commissions and compensation fees, which are not transparent. RBCM practices fee transparency; there are no hidden or undisclosed fees.

By law, brokers, advisors and insurance agents who are employed by a sales organization, are required to work in their firm’s best interest. So called "fee-based" advisors work as a fiduciary for their clients only part of the time (they charge a fee part of the time or for certain work) and are commissioned salespeople at other times. In both of these situations, the individuals that represent these firms have an incentive to sell and recommend high-cost products that may or may not be in your best interests. By contrast, Raub Brock Capital Management works in a fiduciary capacity at all times. This means that we have a legal obligation to place a client’s interests ahead of our own at all times.

 

Working with RBCM

Q: What do I need to bring to the initial meeting?

A: We will send you a questionnaire to compete in advance of the initial meeting. In addition, we would like you to bring all of your financial statements so that we can get a sense of your assets and liabilities.


Q: Is it possible to receive planning or investment advice on an hourly basis?

A: Normally we work on a retainer basis only.


Q: How often will I meet with my RBCM advisor?

A: We are firm believers in maintaining a team approach to the relationships we have with our clients. While our clients typically dictate how often we personally meet to discuss portfolio results and financial planning topics, they are in regular communication with our entire staff throughout the year. Some clients have met with us three times a year and others prefer to only meet once each year for a comprehensive annual review. We are proactive in scheduling client reviews and contact each client to schedule reviews on a routine basis.

In addition to meeting personally throughout the year, we regularly communicate with clients through monthly telephone conference calls, posting articles to our web site, e-mail, client dinners and seminars, and quarterly reports. Our emphasis on continuous communication is based on our philosophy of maintaining strong relationships with each and every client.


Q: Will you work with my CPA or estate planning attorney?

A: Yes, our goal is to work with your CPA or estate planning attorney to ensure that you receive the best advice possible, efficiently coordinated. This includes maintaining your cost basis records and any other information you might need.


Q: What type of clients do you work with?

A: Generally, our clients are people who are successful, goal-oriented, ask good questions, and value working with an experienced, unbiased advisory firm. Approximately two thirds of our clients are individuals who are in or approaching retirement and nearly one third are younger individuals who are accumulating wealth. Our clients have a desire to follow the financial advisory process and have reasonable expectations for success. The common denominator among all of our clients is a desire to work with a trusted advisor and to delegate financial management so that they can pursue other goals.

 

Investment Process

Q: What is your investment approach?

A: We construct globally diversified, multi-asset-class portfolios that will harness the wealth-creating power of global capital markets. The core Raub Brock Dividend Growth Portfolio consists of a concentrated group of high-quality, dividend growth companies. This is based on our belief in the power of rising dividends to drive superior investment performance.


Q: Does your firm pick stocks?

A: Yes, we have been picking stocks for our Dividend Growth Portfolio for over 11 years.


Q: Does your firm use mutual funds or ETFs?

A: Yes, our customized portfolios are a blend of our core institutional equity strategy and a selection of mutual funds, exchange-traded funds, real estate investment trusts and publicly traded limited partnerships to achieve portfolio exposure in specific asset classes, such as foreign and emerging market stocks, alternative assets and bonds.


Q: Does RBCM have historical performance information?

A: Yes, we maintain audited GIPS compliant returns for our Dividend Growth Portfolio.


Q: What will happen to my existing portfolio if I transition to RBCM?

A: First, we will review your portfolio for any low basis positions or other holdings that we might want to continue to hold or incorporate as part of your new portfolio with RBCM. The rest of your portfolio will be liquidated and repositioned to conform with the investment policy statement we develop with you.


Q: Will RBCM provide advice how to invest my 401k?

A: Yes, we are more than happy to provide you with advice on your company retirement plans as part of the investment process at no extra charge. We would typically evaluate all of your 401(k) or 403(b) plan investment choices and help you to select those plan assets that best suit your goals and objectives.

 

Financial Planning

Q: What is personal financial planning?

A: Personal financial planning is a process of making decisions about all areas of your financial life. The process includes gathering information about your assets, liabilities, spending and income; discussing and identifying goals and objectives; modeling and presenting financial solutions; then implementing the plan using tax and legal strategies or investment and risk management recommendations.


Q: Why should I use a financial planner?

A: A financial planner is a trusted counselor who can help guide you toward making good decisions in what can be a complicated financial world. Excellent planners can help you to be more objective and less emotional in your decision-making process. They can also help educate you about tax and legal issues that can be difficult to understand. A comprehensive financial plan involves expertise in a variety of disciplines that most individuals probably don’t have the time to properly research.


Q: Does RBCM help clients determine if they can afford to retire?

A: Yes, many of our clients consider this to be one of the most important services we provide. More importantly, we will help you to arrange for a continuous, predictable and growing lifetime income stream from your investments.


Q: What are some of the financial topics a financial plan might cover?

A: Financial planning is a multi-step process that will provide you with an in-depth review and analysis of your current situation and a plan for how to manage your finances to achieve your financial goals. A comprehensive financial plan can address the following areas:

  • Net worth and cash flow analysis
  • Retirement analysis
  • Insurance analysis
  • Tax planning
  • Education planning
  • Estate planning

 

Client Service

Q: Who will I work with at RBCM?

A: Each client works with at least one shareholder of the firm with dedicated investment and client support.


Q: How often will I receive reports from RBCM?

A: You will receive reports on a quarterly basis, either by email or in hard copy depending on your preference. You will also be able to view your account information daily through our website. In addition, you will receive monthly account statements from Schwab and written confirmations of all trades.


Q: What are your fees?

A: Our fees are based on assets under management. The fee percentage decreases as the asset level increases.


Q: Does RBCM arrange for regular payments or cash transfers from client accounts?

A: Yes, this is very common, especially for our retired clients.


Q: How are my assets protected at Charles Schwab and Co.?

A: Charles Schwab is committed to staying financially strong and take many measure to protect client assets. Client securities – such as stocks and bonds that are fully paid for are fully segregated from broker-dealer securities, in compliance with the SEC’s customer protection rule. This is a legal requirement for all broker-dealers.

Assets held in custody by Charles Schwab are protected by the Securities Investor Protection Corporation (SIPC®) for up to $500,000 in value, including $100,000 in cash awaiting reinvestment. In addition, Schwab provides coverage in excess of SIPC limits through Lloyd’s of London. This "excess SIPC" protection of securities and cash is provided up to an aggregate of $600 million, limited to a combined return to any customer from a trustee, SIPC, Lloyds, and other London insurers of $150 million, including up to $1 million in cash.

Interested In Working With RBCM?

To see if our approach is right for you, please review our Disciplined Wealth Process. The Disciplined Wealth Process is a continuous and dynamic approach to financial management that will help you protect and grow your wealth, achieve your goals, and attain peace of mind.

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