What is a multi-family office group?

A multi-family office is a firm that offers cross-generational investment counsel and cash management services to a select few wealthy families. Such a service exists to protect and grow client wealth, while handling the daily rigors of financial management.

Who has control of my assets?

You do. Custodial services are provided by Charles Schwab & Co., Inc. and to the extent that you give us written permission. Schwab will permit Yale Capital to move funds according to your instructions, as well as execute trades.

Standing letters of authorization permit us to move money into accounts of different registrations — you can simply call us to instruct money movements as often as you need. For funds transferred to accounts with different registrations, for which we do not have a standing letter of authorization, your signature will be required.

We will do the leg work — all you have to do is sign an authorization document and provide verbal permission to initiate the transfer.

What are some of the due diligence activities I should carry out when considering advisors?

1. First, consider whether or not your advisor is an independent advisor, or an advisor working for a broker-dealer. A registered investment advisor (RIA) is legally required to put the client’s interests before their own, while a registered representative working for a broker-dealer answers also to his/her broker-dealer. Whether or not your advisor is independent, make sure they are paid solely by clients. If an advisor is a registered investment advisor and also hold a Series 7, registered with FINRA, they may be paid by being an RIA and as broker-dealer. You can view more related information in the Useful Links section below.

2. Make sure any performance numbers presented to you are actually those of the advisor with whom you are speaking, and not those of an advisor that they recommend to you or that they represent.

3. Enquire about fee structure and how fees are calculated. Ask for a detailed breakdown of ALL the costs involved in managing your portfolio—not just the advisor’s fee, but fund fees too.

4. You can research the backgrounds of investment advisor representatives through FINRA and the SEC. All registered representatives of both advisors and broker-dealers should be searchable on these sites.

5. Ask to read the advisor’s ADV Part 2. This document should explain their practices in-depth.

6. Ask who will be making decisions about your portfolio and what their credentials are.

7. Consider whether the advisor’s approach aligns with your own investment philosophy.

8. Find out where your assets will be held.  Ideally, your assets should be held with an unaffiliated, qualified custodian (bank registered or broker-dealer) that has legally mandated safeguards to protect your assets and is SIPC insured.