Are you accepting new clients?
We welcome the opportunity to speak with prospective clients who are financially established and interested in building a long-term relationship. We intentionally limit the number of client relationships we take on to be able to focus on close, personal relationships.
How do you get paid?
We operate with transparency and simplicity. Clients pay OCTO Capital an annual investment management fee or a financial planning fee determined after our initial discovery meeting and based upon the complexity of your financial situation. Our annual investment management fee generally range from 1.00% to 0.35% and the financial planing fee range from $1,000 to $5,000.
Do you have a minimum portfolio size?
While we have no set minimum portfolio size for clients referred to us, we generally can provide a cost-effective advisory service for clients whose investment portfolio is at least $500,000.
How frequently do you meet with clients?
We generally meet with our clients two to three times per year to discuss their financial goals, review any changes in their lives, and assess their investment portfolio. We closely monitor their portfolio allocation and will contact clients when the portfolio becomes out of balance. In addition, we encourage regular communication via phone and email.
Are you registered as an Investment or financial advisor?
Yes, OCTO Capital is a Registered Investment Advisor.
Where will my money be held?
We selected TD Ameritrade Institutional to serve as the custodian for the accounts that we manage on your behalf. We receive no compensation from TD Ameritrade and use them as a convenience for you and for us. The accounts are always held in your name. You grant us limited power of attorney to execute transactions on your behalf. You will have online access to your accounts as well as independent monthly account reports from the custodian.
HOW ARE YOU DIFFERENT FROM A TRADITIONAL BANK, BROKER OR INSURANCE AGENT?
As a Registered Investment Advisor firm, we serve as your fiduciary advisor. In contrast, banks, brokers and insurance agents commingle trading with investment advice. These providers are traders first and advisors second. They are bound only to a “suitability standard” such that their investment advice is not necessarily in your best interest, but rather incentivized by commissions and other conflicts.
What is a "fiduciary standard"?
Whereas non-fiduciary brokers provide “suitable” advice and are not obligated to serve your best interests, OCTO Capital uses a “fiduciary standard” for investment advice. This means that by choice, and by legal requirement, our investment advice and actions must be both suitable and in your best interests.
What happens to my accounts if you leave, become disabled or retire?
With two young sons at home, Daniel will not be leaving or retiring any time soon. He loves what he does and does what he loves. However, if Daniel becomes disabled or gets hit by the proverbial bus, we have another advisor in our Bloomfield Hills office. At the very least, your assets will remain at TD Ameritrade Institutional, this would give you time to perform your own due diligence on a replacement advisor.
How do we know you will not take off with our money?
As noted above, your assets are custodied at TD Ameritrade Institutional and not with OCTO Capital. We have limited power of attorney and trading authority on your account, which you grant us when the account is established. However, we will never have direct access to funds in your account except for fee deductions (or, if you wish, you can pay by check).
Do you provide insurance solutions?
Our advisors are licensed to sell insurance or annuity products, through our affiliate company, Shub & Company, LLC. In the situation where we feel the need to place your savings with an insurance company, we will receive compensation from an insurance company for recommending the product, which creates a conflict of interest and will be disclosed to you.
DO YOU CONSIDER LIFE INSURANCE AND ANNUITIES A PART OF A FINANCIAL PLAN?
Absolutely. We review the need for life insurance and annuity solutions as a part of our Total Wealth Management service. We need to make sure that young families are properly insured for income-replacement purposes and might find a need for permanent insurance as a solution to mitigate estate tax exposure or long-term care expenses.
WHAT DO YOU KNOW ABOUT ESTATE PLANNING AND TAXES?
Estate planning and effective tax management are critical components of your overall financial plan. We do not prepare tax returns or estate documents but have a network of CPA and estate planning professionals to assist as needed. In the event you already have these relationships in place, we work with your attorney and/or accountant to integrate income and estate planning into the Total Wealth Management service we provide.