Answering the Tough Questions

This week I received a thoughtful set of questions from a client (at 6 am, morning type of person!) who had been listening to a book (“Unshakable: Your Financial Freedom Playbook" by Tony Robbins). There was a section about choosing the right financial advisor. I appreciate these kinds of inquiries because the more informed our clients are, the better we can serve them (and hopefully the more they come to understand how we built Members’ Wealth to serve them). Here are the questions he asked and how I responded:

1. Are you a registered investment advisor (RIA)? RIAs are fiduciaries, committed to acting in your best interest. Knowing this helps protect you from high-commission products?
   Yes, we are. As RIAs, we are fiduciaries, which means we are committed to acting in our clients' best interests. This is key to protecting you from high-commission products that may not be aligned with your goals.
   
   
2. Is your firm affiliated with a broker-dealer? Some advisers are dually registered, which means they can switch between roles.
   No, we are not. Some advisers are dually registered, which allows them to switch roles and potentially create conflicts of interest. We avoid this by remaining a pure RIA.
   
   
3. Does your firm offer proprietary mutual funds or separately managed accounts??
   No, we do not have proprietary mutual funds. We focus on an open architecture approach, seeking to bring the good investment solutions from around the industry. We focus on providing conflict-free, straightforward solutions.
   
   
4. What are your all-in costs?
   We believe in full transparency. We provide our clients with a quarterly sheet detailing their fees. We typically charge a percentage (rather than a commission) based on assets under management that declines with size.
   
   
5. What is your investment philosophy? Understand their approach to investing. Are they active or passive? Do they believe in diversification? (Sounds like the book preached passive, full disclosure I did not listen to this particular podcast, the client did)?
   Our philosophy is custom-tailored, not dogmatic. We manage portfolios that range from 100% passive to 100% active and every ratio in between, depending on the client’s needs. We don’t get paid any differently whether a client’s strategy is active or passive, conservative or aggressive, etc. so we remain indifferent—our only goal is what’s best for the client.

6. How do you stay informed about market changes? A good advisor keeps up with industry trends and adjusts strategies accordingly?
   We live and breathe the market for our clients. We are students of the game, constantly staying updated on industry trends and adjusting strategies as necessary. We also place great importance on client behavioral analysis, education, and individualized outcomes as vital overlays to the actual investment process.

At Members' Wealth, we are structurally set up to be as conflict-free as possible, and we always seek to put our clients’ interests first.

This goes for all clients, if you have more questions, keep them coming—we’re here to help you learn more about us, and we have nothing to hide.

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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