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FAQs

Answers about Firestone Capital Management and our services.

What does ‘fee-only’ mean? Why is it important?

Fee-based advisors are compensated by fees from clients as well as commissions they receive by selling investments, insurance or annuity products.

Fee-only financial advisors are compensated only by the fees clients pay. Fees are generally based on a percentage of assets under management, but can also include a fixed fee for creating a financial plan.

Fee-only advisors never receive commissions. We have no potential conflict of interest between your best interest and our sources of compensation.

What’s the difference between an Investment Advisor and a Broker?

Brokers sell products and arrange transactions, and are paid by commission. As investment advisors, we provide services, and are compensated only from fees.

In addition, investment advisors are held to a fiduciary standard that requires us to always act in the best interest of our clients. Brokers are held to suitability standards, which only require them to sell products that are suitable for a client.

What does ‘fiduciary responsibility’ mean?

As a Registered Investment Advisor, we have a commitment to always act in the best interests of our clients. That’s ‘fiduciary’ responsibility, from the Latin words for ‘trust’ and ‘faith’. It is the highest standard of care.

This means that we have a legal responsibility to put our clients’ needs and goals ahead of our own. While this concept seems as if it should be obvious and commonplace, it is far from a standard or requirement throughout the financial industry.

What kinds of clients do you accept?

While multi-generation family planning is our focus, we work with individuals, families and their related entities, trusts and estates, pension and profit sharing plans, charitable organizations, and corporations.

Who will I work with once I become a client?

During introductory meetings with Firestone Capital, clients will meet with the firm’s principals and investment advisors. Naturally, clients tend to gravitate towards one person or another, but everyone at Firestone Capital strives to be well informed about client matters and available to help whenever needed. We want clients to be happy and work with whichever person at Firestone Capital they wish.

How regularly will you review my portfolio? How often will we meet?

All portfolios are all reviewed on a quarterly basis at a minimum, often more frequently. Depending on the needs of a client and general market fluctuations, portfolios are often reviewed and rebalanced on an interim basis. Ideally, we like to speak with clients quarterly and meet in person at least once a year, but ultimately that decision is up to you. We are always available for you to call or email.

Will you have discretionary authority over my accounts? Will you contact me prior to making any trades?

We work with discretionary authority – that is, we will receive written permission from you for us to make changes in your investment holdings on your behalf. However, we will always make our best effort to contact you prior to making any changes to your portfolio. We try very hard to involve clients in the investment decision-making process.

What does ‘fee-only’ mean? Why is it important?

Fee-based advisors are compensated by fees from clients as well as commissions they receive by selling investments, insurance or annuity products.

Fee-only financial advisors are compensated only by the fees clients pay. Fees are generally based on a percentage of assets under management, but can also include a fixed fee for creating a financial plan.

Fee-only advisors never receive commissions. We have no potential conflict of interest between your best interest and our sources of compensation.

If I have a 401k account or other accounts with third parties, can you incorporate them in my plan and allocation?

Absolutely. More and more our clients are looking to us for an all-inclusive picture of their wealth and financial assets. We highly recommend that you provide us with timely records of all of your investable assets so we can do accurate planning and allocate your assets accordingly.

Do you invest in hedge funds or other illiquid assets?

No. We do not invest directly or indirectly in any hedge funds. We only invest in securities that provide daily liquidity such as stocks, bonds, ETFs, and mutual funds.

Many of the investment strategies once available only through hedge funds are now accessible through mutual funds. The benefits to using mutual funds include lower costs, heightened transparency, and the ability to sell on any trading day.

Will I be placed into a model portfolio?

No. Firestone Capital Management does not use model portfolios. Every client has different circumstances, needs, and goals. Our goal is to build individualized portfolios for every client.

Do you have a minimum account size?

Our stated minimum is $500,000, but we reserve the right to use our discretion to accommodate our clients’ family members, as well as individuals in the process of acquiring wealth.

Where will Firestone Capital hold my assets?

We do not hold client assets, also known as ‘taking custody’. The vast majority of our clients’ assets are held at Charles Schwab & Co., one of the strongest financial institutions in the country.

Are you affiliated with any banks or broker dealers?

No. Firestone Capital is an independent, privately owned, Registered Investment Advisor.

Do you have in-house accountants, attorneys, or insurance specialists?

While we don’t employ CPAs, lawyers, or insurance agents, we commonly work alongside those professionals who have an existing relationship with our clients. We are also happy to make referrals in this regard where desired.

What’s my next step if I want to explore a relationship with Firestone?

Please feel free to contact us at any time. All of our contact information as well as a direct email form can be found under the “Contact Us” tab on this website.

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