FAQ
So, You Might Be Wondering…
Here are the answers to the most comment questions we get asked. If you don’t see the answer to your question here, let us know.
General
Where are your offices located?
We have two California locations – Truckee and Redding.
How many advisors, employees or support staff do you presently employ?
Two, Damian and Ted Palfini
What does Cavalot mean?
Damian’s great-grandfather (Ted’s grandfather) grew up in the far reaches of northern Italy in the Valle Vigezzo at the base of the Alps. In the immediate aftermath of World War I, he embarked on a ship set for the US at the age of 16 – alone, with no knowledge of English, or a plan.
As a child, Damian would get to ride on his great grandpa’s knee as he sang a nursery rhyme about a horse that would traverse the Alps in winter to supply the small, isolated villages. Years later, that tale would stick with him both as a reminder of a man that refused to give up on his dreams and a seemingly insignificant horse that enabled so many to do the same.
So the short answer is Cavalot means “horse” in the local dialect around Toceno, but it represents our mission to help you discover your dreams, identify the best routes to take and provide the expertise to navigate you there.
How long have you been in business?
Cavalot Capital was formed in 2021 after Damian had spent 11 years with Ted at Palfini Financial.
Ted has been in the financial services business since 1987 and has been with several firms in that time including Palfini Financial which was rolled into Cavalot Capital in early 2023.
What are some of the common challenges you help solve?
- Creating Retirement Income Portfolios
- Making Optimal Financial Decisions
- Maximizing Income Streams
- Simplifying Financial Accounts
- Minimizing Tax Bills
How many families do you serve?
We currently assist approximately 120 families to different degrees based on their current situation, time with our firm and planning, investment and tax needs.
Services
What services do you provide?
Integrated Wealth Management includes establishing your goals, creating a plan to allocate resources efficiently towards those goals, managing your investments, proactively minimizing tax bills and filing your taxes with an overall emphasis on making smart financial decisions as life evolves.
We also offer Investment Management as a standalone service.
What is the difference between Wealth Management and Investment Management?
Investment Management is one of the services in our Integrated Wealth Management offering where we establish your objectives, identity the risk parameters you are comfortable with and then create a portfolio designed to grow over time whether to fund specific expenses or generate sustainable income.
Integrated Wealth Management is more comprehensive and also includes extensive financial life planning and tax strategy along with the preparation of tax returns.
What is the process to establish my goals and objectives?
We will spend the first 3 meetings identifying what is important to you and what your idea life would look like before even considering the financial aspects.
We will then narrow down goals and objectives and determine where you want to allocate your resources – energy, time and money – as we create an overall plan for maximizing your financial resources.
What topic areas do you provide advice on?
We focus heavily on optimizing your investments and taxes while creating sustainable income streams from current and future assets.
We take a holistic approach to financial planning which often includes Retirement Planning, Investment Planning, Cash Management & Budgeting, Business Planning, Equity Compensation, Alternative Investments, Insurance Needs, Charitable Giving, Education Planning, Real Estate, Crypto and just about anything where money plays a role.
What is your primary role as a wealth manager?
To help you make optimal financial decisions and align your actions with your goals.
For every situation we will assess the pros and cons of each possible course of action and run the numbers to show you how it may affect other areas of your life. We may provide recommendations when asked but we do not tell you what to do or what you should do, we are simply here to assist with navigating the financial system, assessing your options and coordinating with other professionals.
What is required from me to create a financial plan?
The largest amount of time will be spent on meeting to help identify what is important to you and narrowing down what you want to prioritize in your life. After that you will need to gather documents and information that will provide the groundwork for
Ethics & Fiduciary Duty
What is a fiduciary?
Financial professionals held to a fiduciary standard must put your interests first, avoid conflicts of interest, and give advice that benefits you, even if it results in lower fees or commissions for them or their firm.
This duty includes full transparency, loyalty to you and avoiding self-dealing. Fiduciaries are often held to higher professional standards than non-fiduciary advisors, who may only be required to recommend investments that are “suitable,” even if better or lower-cost alternatives exist. Choosing a fiduciary helps ensure you receive advice that is aligned with your goals, not the advisor’s compensation whether through commissions or kickbacks.
Financial professionals are held to a fiduciary standard based on their licensing, certifications, and regulatory oversight. For example, Certified Financial Planners™ (CFPs®), have a fiduciary obligation which is clearly defined and enforced by the CFP Board of Standards. All CFP® professionals are required to act as fiduciaries at all times when providing financial advice to clients, not just when creating a financial plan.
Failure to meet these standards can result in disciplinary action, including public censure or revocation of the CFP® designation. While not all financial professionals are fiduciaries, those holding the CFP® mark are obligated to meet this higher ethical and professional benchmark when giving advice, making them one of the more client-aligned credentials in the industry.
Learn more here.
Which financial professionals are held to a fiduciary standard?
Registered Investment Advisors (RIA) and their representatives, CERTIFIED FINANCIAL PLANNER® professionals and some fee-only financial planners.
CFP® professionals for example, must:
- Act in the client’s best interest above their own or their firm’s.
- Avoid conflicts of interest, or fully disclose and manage them if unavoidable.
- Provide full transparency around compensation, services, and potential conflicts.
- Act with care, skill, prudence, and diligence based on the client’s situation.
- Comply with all applicable laws and regulations.
What is the suitability standard?
The suitability standard requires financial professionals to recommend products or strategies that are suitable for the client based on their financial situation, objectives, and risk tolerance — but not necessarily the best or lowest-cost option.
Which financial professionals are held to a suitability standard?
Broker-Dealer Registered Representatives (stock brokers), Dual Registered Advisors that are both a Broker-Dealer and RIA are only held to the suitability standard when acting as a broker, advisors at traditional banks and Insurance Agents selling life insurance, annuities or other insurance products.
Are you held to a fiduciary standard at all times?
Yes.
Are you legally obligated to put my interests ahead of your own?
Yes.
Have you ever been subject to a regulatory investigation, disciplinary action or client complaint?
No.
(Check on BrokerCheck)
How do you disclose potential conflicts of interest?
Each year we update our Form ADV that outlines any and all conflicts of interest that may arise which are also explained in our Service Agreements, if something comes up during the course of the year we will communicate that to you either verbally or in writing.
How do you stay current on industry regulations and ethics?
CERTIFIED FINANCIAL PLANNER® professionals are required to fulfill 30 hours of Continuing Education (CE) every 2 years, Investment Advisors are required to complete an additional 12 hours each year, NAPFA members are required to complete an additional 60 hours of CE every 2 years and California Tax Preparers under CTEC are required to complete an additional 20 hours of CE each year.
Members of our firm often exceed these minimums each year to keep up to date with current law changes that may benefit our clients.
Fees & Compensation
Financial professionals are compensated in different ways, and understanding their payment structure is the most important factor to consider when deciding who to work with.
What is the minimum amount of assets I need to engage your services?
We do not enforce asset minimums for clients, but we do have minimum annual fees in order to ensure each client receives the highest standard of service.
For Integrated Wealth Management we generally have a $10,000 minimum fee.
For Investment Management only, we have a $2,500 minimum annual fee.
Jump to a Topic
Does your financial plan utilize every strategy for your long-term success?
We provide a comprehensive framework to identify and prioritize what you are hoping to achieve in life, then craft a plan to efficiently allocate your resources to make it a reality. We provide ongoing support and check-ins throughout the year so you don’t have to go it alone.
Everyone has a Why. Let’s find yours.
Reach out for a no-pressure conversation.
