Welcome to our Frequently Asked Questions (FAQs) page. If you have a question that isn’t answered here, please Contact Us.
What services do you provide?
Our job is to continuously manage and monitor our clients’ investment portfolios. We consult carefully with each client at the outset, to determine the client’s overall financial needs and objectives. Then we construct (or restructure) a portfolio that is designed to build and preserve wealth in accordance with each client’s needs, tax circumstances, risk tolerance and objectives. We issue quarterly investment reports to clients and invite them to meet with us at least annually to review their portfolios in person. We are proud of our customer service and rigorous independent research.
Why might I need investment management services?
In today’s demanding and hectic world, many time-challenged investors choose professional management as the most effective means of building and preserving their assets. Our clients shift the decision-making process (what to buy and sell and when to do it) and burden of continuously monitoring their investments to our team of professionals, and value our independent and unbiased research. At Riverwood Capital Advisors, our highly experienced staff is dedicated to meeting your financial needs.
How do I establish an account with your firm?
The first and most important step is an initial meeting in which we get to know you, your resources, your dreams and your needs. We ask you to complete a confidential questionnaire in advance. With you, we’ll determine the best mix of investments for your situation. Then we’ll prepare all the documents. If you’re investing cash, you’ll write one or more checks to the custodians. If you’re transferring assets, as in an IRA, we’ll take care of the paperwork.
How does a privately managed account compare to a mutual fund?
Compared to a mutual fund, we award you several advantages. We offer you a personalized portfolio created specifically for your unique situation.
At Riverwood Capital Advisors, you have greater access to your portfolio manager than in the case of a mutual fund, and you receive trade confirms, monthly custodian statements, and quarterly portfolio summaries. Mutual funds do not send trade confirms, so you are unable to monitor the activity in your account. Reports are typically prepared semi-annually and fund managers are not available to answer questions.
We manage your account with an eye towards your specific tax situation. We have the ability to harvest losses and avoid certain taxable events such as short-term gains. Mutual funds are disadvantaged when it comes to taxes as they must pay out capital gains each year, yet cannot distribute capital losses.
How are you compensated and when do you get paid?
We charge a management fee based upon a percentage of the value of the assets we manage. The fee is an annual percentage fee, and is billed quarterly by taking the value of the managed assets at the beginning of each calendar quarter and applying one-fourth of that annual percentage fee. We do not receive commissions on transactions and we accept no other forms of compensation from investment product providers or financial institutions.
Do you invest your own money in the securities you recommend?
Yes. That’s how much faith we have in the quality of our advice. We gladly invest our capital right along with our clients.
What is the minimum amount I can invest?
Our minimum portfolio size is $100,000 in liquid assets.
Can you manage my IRA, which is now at another company?
Yes, we manage many IRA accounts. We can prepare the paperwork for your signature to order a direct transfer of assets from your present custodian to your new one.
Will I be able to view my account online?
Yes. In addition to any service the broker-dealer firm on your account may provide, we offer secure, password-protected service to our clients who request online access to view their portfolio.
What happens to the custody of my accounts?
We do not have legal custody of our clients’ accounts. Our clients are free to maintain their accounts with any broker-dealer they choose, and they continue to receive all of the standard reports from their broker-dealer (e.g. monthly statements, trade confirmations, tax forms). Riverwood uses Scottrade Advisor Services member FINRA/SIPC as our custodian in cases where our clients don’t request that their own broker-dealer be used. We operate pursuant to an investment advisory contract that provides us with the limited power to trade our clients’ accounts, receive duplicate statements, invoice client accounts for our fees, and make cash distributions directly to our clients at their request.
Am I locked-in? Are their termination penalties?
Absolutely not. There are no barriers to exit a relationship with Riverwood Capital Advisors. The relationship is terminable on written notice at any time. There are no forced liquidations, termination fees, back-end loads, redemption fees or other charges associated with the termination of an advisory relationship with our firm.
How will you communicate with me about my account? Will I receive notices or reports?
All of our clients receive detailed quarterly reports as well as annual reviews of their portfolio’s performance. Quarterly reports include a valuation of the portfolio and its component holdings. Quarterly reports may also include a discussion of certain securities, sectors or investments; comments on the outlook for the market and the economy; a discussion of interim performance in comparison with relevant indices; and/or an appraisal of asset allocation or portfolio diversification, among other topics. We may also have occasional mailings on topics of interest. Most clients will talk with us at least several times during the year, and clients are encouraged to contact us by telephone, fax, or e-mail to discuss their investments or ask questions, or to schedule an appointment to meet with us at our offices.
Do you act as a broker? Do you earn commissions on what you sell?
We are a fee-based investment manager. We are not brokers and do not receive any commissions on the investments we select for you. Our only compensation is based on the total value of your assets under management. Our fee is assessed as a percentage of your account and billed quarterly. Further, this fee is based on a sliding scale, which means that as the assets in your account grow, the fee, as a percentage will drop.
Will my account information remain confidential?
We believe that your wealth is an extremely private issue and your identity and financial records are kept strictly confidential. No mailing lists are sold, nor is any client information shared with outside firms unless directed by you.
I am not in the Jacksonville Area. Can Riverwood still be my advisor?
Yes. Riverwood can only operate in the state of Florida and other states for which it is registered or qualifies for an exemption from registration. Riverwood only serves clients in states that meet those requirements. Our portfolio managers and financial advisors frequently travel and are able to schedule client meetings while they are in your town. Your advisor also has a breadth of proven experience providing high-quality services via telephone or electronic communications. And of course you are encouraged to stop by our offices for a visit any time you might travel to the Jacksonville area.
Are your fees tax deductible?
Yes, investment advisory fees are tax deductible for those who itemize their deductions. The IRS categorizes these fees as miscellaneous deductions, and the deduction kicks in for amounts above 2% of your income.