First Class Capital vs big firms?
First Class Capital is Registered Investment Advisory Firm. We are independent fiduciary advisory firm, which simply means we are not pushing any company products, we can simply do what best serves our clients.
First Class Capital uses Large well known 'custodians' that everyone has heard of like Charles Scwhab and InteractiveBrokers which hold the clients assets in the clients personal account.
The clients assets will always be in their own personal account within the trusted custodian.
Clients will simply open an account and move their assets with the Trusted Custodian, then First Class Capital will manage the investments for them behind the scenes.
We never take custody of clients money or investments that way the clients can always see their assets are safe within their own personal account and all actions are transparent to the client.
This provides, safety, transparency, along with all the benefits and techonology of being at the 'largest firms', while getting the independent investment management service to be able to choose the best investments and not be stuck to one company's products which they need to push on a clients to buy.
Who are First class capitals potential clients?
Everyone-Just recently First Class Capital has decided to expand its service to more clients.
Especially if you are 'changing Careers', have 401k at old company you moved on from, coming to to Retirement, Major life changes, divorce, having child, etc. Business owners. Anyone looking to see if their current plan is optimal, or have questions about what your current advisor is recommending. Or have money you know you need to invest.
We do not Charge anything for a consultation , or even putting together a Financial plan.
Everyone needs to put their financial lives in order, and there is nothing to be nervous about. The first step is simply talking to someone who can help and seeing where we can add value. Even if you may not be ready to be a client, we are more than happy to see if we can help in some way.
Why?
Making sure your financial life is in order can be stressful, confusing, and can sometimes feel like its out of your grasp or even like you should just push it off till later. We are simply here to help you, and make sure you have the optimal plan in place to capitalize on your financial future.
What is a Financial Plan?
A Financial plan is simply a Plan to best achieve your finanical goals.
What should the plan look like?
When building a Financial plan you need to understand you personal finances and realistic goals.
A plan should consider things like tax bracket, time horizon, goals along the way, and understanding your personal emotions to risks.
Once you are able to seperate those time horizons, understand your risk tollerance, and plan for your goals which you need capital for like a home, college, retirement, etc, we should be able to plan accordingly and optimize your investment options in a tax savy way to make sure we invested properly to best achieve your goals.
First understanding you are setting up for:
Short term-Safest investments
Medium term- little more ability to add riskier investments to achieve higher returns
Long term(retirement)-ability to handle most risk and achieve higher rate of return.
Process, what to expect?
Have consultation: inquire facts to understand financial situation, assets, income, risks tolerances, and goals.
Build plan to best address individuals financial situation to achieve their goals
Implement plan: this includes setting up accounts and managing assets as a ‘fiduciary’ which simply means putting the clients needs first
Actively managing the portfolio behind the scenes, rebalancing and actively looking to add or cut asset allocations.
On a as needed basis or periodicly through the year-reevaluating the financial situation to make sure their plan is optimal to address the clients goals, and life changes to act accordingly.
Why Shouldn't I just do it on my own?
There are many people who can do this on their own.
Many can even do a Great job, and If its something you really like to do maybe its for you.
But investment management takes serious time commitement, research, and is a art form. No one has all the answers. And many times in certain markets, regular individuals can even beat investment managers. But it is very hard to do over a spectrum of market environments, over a long period of time. Many people think they beat their investment manager, and some do, but sometimes its simply because they were taking on more risk, and it was a bull market. No one 'individual or investment manger' wins everytime.
The way we view it is, we strive and obsess to do our best for our clients. We consider our clients and ourselves in the same journey together and look to work together to achieve the same goal. And in the end we believe we will far out earn our minimal fee.
Other Financial Firms?
There are so many financial firms out there. Many decent, and many not so decent. There is a distinct reason First Class Capital originated in the first place though: to Better serve clients that we knew were not getting optimal service and being put in subpar products else where.
Many firms still sell:
-Loaded Mutual funds, and have a set it an forget it style. This is less than optimal. The global market environment is constantly changing, and rebalancing is simply needed. Even if the Mutaul Funds are doing that for the adivsors, Thats extra 'fees' to multiple parties which eats away at your returns.
-A Mutual/Insurance company(or insurance parent company): These firms always push far to many insurance products on clients. Why? because the commission are enormous. There can be a need for insurance sure, but they are sold and PUSHED far too often in too large of amounts on clients using hypothetical scenarios of savings on tax and out performing, while the reality is they have Fees, Massive commissions and lock up the clients assets. Unless the client needs the insurance for that amount, the 'salesmen' is over selling.
--Many of these "wholeLife insurance products' are sold as investments which they can take out a loan against. They can have a signifcantly longer time horizon than clients expects in order to be able to 'take a loan on that cash value of the wholelife'. These products always have their premiums go to fees first, then death benefit cost, then the last bucket to be filled is the 'cash value', which is what the client can take the loan against. Having your assets locked up, can be very costly when you need your assets for an expense or alternative investment option.
*these products do have a place if needed, and in certain circumstance we even recommend them ourselves to clients, but it should be 'sized correctly'.
---Also many of these 'insurance company advisors', tend to have sub-optimal investment performance. I am sure there are many who still out perform. But if they were performing so well, why would they be selling insurance which only invests in an index, when they can outperform as investors?
-----Without walking around the issue, most Advisors simply are not good investment managers. Their success revolves around how much they can sell, pushing products/insurance, mutual funds or 'set it an forget it' passive funds. That is why so many clients of even 'successful advisors' still have subpar investment managment. At First Class Capital, Tony has made it his obession and passion to provide proper investment management, and give clients the First Class service they deserve. Its why he founded First Class Capital, having such deep conviction in his investment performance, providing a 'performance fee only fund', and even having 100% of his own capital in the Total Return Fund, in the exact same investments as the clients.