How do you charge for your financial services?
Do you earn commissions?
I thought commissions were bad?
What is your minimum investment amount?
Do I have to come to your office?
What can I expect as part of an initial consultation?
Can you handle my 401k and other employer related plans?
I’ve never heard of Randall Financial Group, is my money safe?
What is your relationship with Fidelity Investments?
Am I limited to just Fidelity Mutual Funds?
What types of investments do you use?

How do you charge for your services?

The majority of our revenue is derived from fees that we charge to our clients. The amount of the fee is dependent on two variables. The first is the total dollar amount of assets that we managed which are kept by our custodian. This does not include 401k plans, other employer plans, or assets the client chooses not to keep with our custodian. The second variable is the level of service required by the client. The two levels we offer are Investment Management Services and Comprehensive Wealth Management Services. For a complete listing of our fees, please see our Fee Schedule.

Do you earn commissions?                    return to top

Yes, in limited circumstances, and with the clients full knowledge we receive commission. This occurs in two specific situations. The first is when we handle smaller accounts. For total household assets of less than $100 thousand, the most economical way for the client to pay for advice and for our firm to provide it is often through commissions. We also offer the option of an hourly fee to avoid the commissions but have found that households with smaller net worth would rather have our fees paid through commissions rather than having to write us a check.

The other circumstance where we earn commissions is on the sale of life insurance. Unfortunately, the insurance industry is well behind the investment industry in offering products that pay no commissions. That means that, if we handle insurance coverage for our clients, we are going to receive a commission. It is almost impossible to avoid. Some “fee only” advisors have chosen to deal with this by not handling a clients insurance or referring to a third party who will be paid the commission. Neither solution is acceptable to us as we want to offer our clients comprehensive one stop service.

Finally, it is important to note that we absolutely do not, nor would we ever accept a commission and charge a fee on the same asset. Although this practice of “double dipping” can be found among some advisors and is not illegal, we consider it to be highly unethical and not to be tolerated.

I thought commissions were bad?               return to top

It is true that where possible, paying a fee is preferable to commissions as a method for compensating a financial advisor. Unfortunately, this places some serious limitations on the size of client that a “fee only” firm can handle as well as the types of services like insurance that a firm can offer. The term “fee only” has become a mark of distinction in the market place as if accepting only fees erases any conflict of interest. The reality is that any compensation method including fees will have some inherent conflict of interest. The real issue is whether or not the advisor acts with fiduciary care and discloses any potential conflicts of interest to clients.

What is your minimum investment amount?

For fee based financial planning or asset management, our account minimum is $100,000 dollars. For prospective clients with less than that amount, we can recommend and service investments that will compensate us by commission. In addition we are available to offer advice and handle specific projects at a rate of $150 per hour.

Do I have to come to your office?              return to top

If you reside within a thirty mile radius of our office in Providence, RI, we ask that you come to our office for appointments. We find that this is the most productive means of meeting and offers the fewest distractions for our clients. If you prefer, many meetings such as annual reviews can be handled via phone and internet if necessary. Special arrangements can also be made if some physical or health condition prevents you from coming to our office.

For clients outside of our immediate area, we can arrange to come to you. Also, with our sophisticated use of technology including file sharing, teleconferencing and web conferencing we are able to service clients in many different parts of the country.

What can I expect as part of an initial consultation?

Many people are hesitant to come in for a consultation with a financial planner for fear that it will turn into a high pressure sales meeting. When you visit us for an initial consultation you can expect to have all of your questions answered in a professional manner. We will review your present circumstances, make suggestions, discuss our approach to financial planning, and answer any questions you may have. We never transact business or sign on new clients at an initial consultation. Our only goal is to answer your questions and determine if our services are a good match for your needs.

Can you handle my 401k and other employer related plans?

Yes, we can handle your 401k or employer related plan. Our investment approach is comprehensive so we need to take all of your investments into consideration. However, because we can not custody your employer sponsored plan, we can not provide complete services such as executing trades, monitoring investments, and reporting performance. Because we can not provide complete service on these assets, we do not include them when calculating your annual fee.

I’ve never heard of Randall Financial Group, is my money safe?

Yes, your money is safe. Randall Financial Group is a Registered Investment Advisor. However, Randall Financial Group never takes custody of your investments. You will never write us a check or hand any securities directly to us. All of our client assets are held at our custodian, Fidelity Investments.

What is your relationship with Fidelity Investments?

Fidelity Investments is a national broker dealer that provides clearing and custody services to Randall Financial Group clients. All assets that are managed by Randall Financial Group are kept at Fidelity. In addition, Fidelity sends monthly statements to our clients detailing current holdings and transactions. Fidelity accounts are insured by SIPC as well as private insurance carried by Fidelity.

Am I limited to just Fidelity Mutual Funds?         return to top

Absolutely not. We utilize Fidelity because of the broad array of investments we can utilize with our clients. This includes thousands of mutual funds from other managers as well as virtually every publicly traded stock and bond on the secondary market.

What types of investments do you use?

In our experience, the most important part of a portfolio is the decision about what types of assets to own and in what percentage to own them. From there we make a decision with the client about what specific investments should be utilized to execute the portfolio. The investments can include mutual funds, exchange traded funds, individual stocks and bonds as well as hedge funds and other alternative investments.

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