While not as common as it used to be, financial advisors in the past were often paid on commission for the sale of products. This created a potential conflict of interest where clients were sold investments to make money rather than because it was in the their best interest. Fee-only changes that. By paying a fee for service, it aligns the client with the advisor so that the client's best interests always come first. Learn more here.
While wealth is generated in many different ways including business ownership, inheritance, prudent investing and many other avenues, we have found that there are 3 core principles to manage it.
No. While many of our clients do share one or more of these characteristics, it is not a prerequisite to engage our services. If you are looking for someone to help you solve any type of financial issue we would be glad to meet and see if we can be of help. If not, we have an extensive network of financial professionals that we would be happy to refer you to.
We have two physical locations in California: in Truckee and Redding. We also operate virtually which enables us to take clients from around the country regardless of their location. Meetings are held either in-person, via web conference or phone depending on your preference.
For some services, Cavalot Capital evaluates the complexity of a client’s financial situation in determining the fee the client will pay. Cavalot Capital’s definition of complexity is the existence of circumstances, or lack thereof, that will require more time and effort of Cavalot Capital’s to deliver valuable advice to a particular client.
Factors that may impact complexity include, but are not limited to, the following:
Splitting the services up allows us to help people that may not have a lot of investable assets or their assets are locked up in a qualified plan (such as a 401k, 403b, etc.). Rather than have them pay the same price and not get the same standard of service we decided it is better to offer it 'a la carte' with discounts to those clients looking to bundle services. See the graphic below for a breakdown of financial planning investments vs investment management.
The short answer is because while we all have an idea of what we think our goals are, most people don't really know and even if they do aren't actively working toward them. They conflate social norms, things they heard that sounded smart, someone else's goals, marketing, etc. with what they want out of their life. And they're rarely the same.
The three currencies of life are time, energy and money and I want to help everyone utilize them as efficiently as possible to create the life they want, not what someone else wants for them.
Finding what is truly important to you is the first step, then utilizing all your resources to make it a reality is next. Most planners will give you a one-page worksheet to write your goals down, but if we don't really know exactly what they are then how useful is all the planning that goes into achieving them? Instead we will spend several hours diving into that meaningful life, and you might be surprised what you discover.
We can only manage accounts that are held outside of your workplace - IRAs including Traditional, Roth, SEP, SIMPLE. Taxable accounts including individual, joint or trusts and custodial accounts (UGMA, UTMA) and a few other less common options.
We are unable to manage any investments in a qualified plan, meaning no 401k, 403b, 457, ESOP, etc. We can however offer advice and recommendations on these accounts in our financial planning services, see the above graphic for more information.
Absolutely not. Clients have varying interest in the space and while I am more than inclined to answer any questions and help them understand, at the end of the day it comes down to whether or not it is appropriate for each individual client. Any client that is interested must go through a detailed suitability process whereby we can determine if it would help them meet their goals and objectives given their situation. Clients are free to choose which areas they would like to cover and exclude any that do not fit their needs.
We break down our asset management into two broad buckets - traditional and cryptoassets.
Traditional can be further broken down into our customized portfolios that include individual stocks and ETFS and our robo-advisor offering which consists of ETFs only. Find details and pricing for each on our Investment Management page here. We custody all traditional accounts at Schwab.
Cryptoassets are a separate asset class and service from our traditional asset management. Cryptocurrency and token investments are not for everyone and present their own risks and challenges, we require all clients interested in this option to undergo an extensive suitability questionnaire to ensure they are appropriate for their situation. Our digital asset portfolios consist of individual, direct cryptocurrency and token holdings and are custodied at Gemini Institutional. For more information please see our Cryptoassets page here.
Most people think all financial planners are “certified,” but this isn’t true. Just about anyone can use the title “financial planner.” CFP Board benefits the public by independently certifying financial planners. Although CFP Board does not guarantee their work, CFP® professionals have met rigorous qualifications for financial planning. Only those who have fulfilled CFP Board’s rigorous requirements can call themselves a CFP® professional.
As part of their certification, CFP® professionals commit to high ethical standards. What’s more, a CFP® professional must acquire several years of experience related to delivering financial planning services to clients and pass the comprehensive CFP® Certification Exam before they can call themselves a CFP® professional.
To learn more, click here.
Life Planning focuses on the human side of financial planning. In Life Planning we discover a client’s deepest and most profound goals through a mindfulness-based process of structured and non-judgmental inquiry. Then, using a mix of professional and advanced relationship skills, we inspire clients to pursue their aspirations, discuss and resolve obstacles, create a concrete financial plan, and provide ongoing guidance as clients accomplish their objectives.
To learn more, click here.
Cavalot Capital LLC ("Cavalot Capital") is a registered investment advisor offering advisory services in the States of California, Louisiana, Oregon and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.
The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation to buy or sell, or as an endorsement of any company, security, fund, cryptocurrency, protocol, token or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision.
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