We know questions are important as someone seeking out a firm and advisor to be their guide and partner on their financial journey, Here are 16 important questions we’re asked at Chapwood Investments that we hope answer a few of the questions currently on your mind.
Who do you serve?
Our primary focus is on working closely with accredited investors*. This group includes a diverse range of individuals such as business owners, executives, athletes, and retirees. These individuals hold significant influence, responsibility, and respect within their respective industries, professions, and communities. For more than thirty years, our practice has revolved around serving this specific group. We firmly believe that to specialize and deliver precisely tailored services, it is essential to limit the range of investors we work with.
What services do you provide for high-net-worth individuals and families?
We offer a comprehensive range of financial services. Through our proprietary technology and systems we have created, we provide investment management and analysis. Through our virtual family office, we also offer access to various trusted sources in tax planning, estate planning, and wealth preservation strategies tailored specifically to high-net-worth individuals and families.
Which locations do you serve?
Our primary location is Texas, but we have clients throughout America. Our co-founders are from New York and Minnesota, so we like to think we have roots everywhere!
How do you define a high-net-worth individual or family?
High net-worth individuals or families are typically defined as those with a significant amount of investable assets or a high annual income, usually exceeding a certain threshold. We’ve found that a net worth of 3 MM allows you to create a customizable plan that is unique to you and your family.
Why should I choose a financial advisor who specializes in high net worth clients?
A financial advisor specializing in high-net-worth clients possesses the expertise, experience, and knowledge necessary to address the unique complexities and goals of wealthier individuals and families. Our managing partners have a combined 60+ years in the investment industry, with access to various tools and investments that are not available to retail investor.
What sets your firm apart from other financial advisors?
Our firm distinguishes itself through our deep analytical approach to investing. We consider management fees, taxes, and various other hindrances that may be eroding your purchasing power and limiting your investment gains. We are committed to providing not only a future our clients’ can have confidence in, but one in which they know what to expect and are educated throughout the journey.
What is your investment philosophy and approach for high-net-worth individuals?
Our investment philosophy focuses on customizing risk and return needs for each client. Using our proprietary tools, we aim to manage risk and help maximize returns by maintaining a standard deviation of 80% of our overall rate of return. We believe that by holding 10-15 non-correlated investments, you are able to own a portfolio that sets you up for the future you need while keeping risk under control.
How do you assess and manage risk for high-net-worth clients?
Utilizing the CHIP Score, ChapVest, and various other proprietary systems we have created, we are able to put a specific number to your risk and adjust accordingly. We do not believe the industry does a good enough job of calculating risk and planning for it. We do not believe one must risk what they have in order to earn the returns they need for their future.
Can you explain the concept of wealth preservation and growth strategies?
Wealth preservation involves strategies aimed at preserving and growing assets while managing risk, including tax-efficient investment allocation, estate planning, and diversification across various asset classes. Depending on the client, we focus on creating portfolios that have growth potential while also including investments that provide income for your liquidity and current-day needs.
Do you offer personalized tax planning and optimization strategies?
For years we have provided the highest quality introductions and connections to tax professionals for our clients. We only use trusted sources that have strong experience in the industry.
How do you coordinate with other professionals, such as lawyers and accountants, to provide comprehensive financial advice?
We collaborate closely with a network of trusted professionals, including lawyers and accountants, to ensure a holistic and integrated approach to our clients’ financial affairs and goals. We only partner with the best and are willing to go anywhere to find them.
What is your fee structure for high-net-worth individuals and families?
Our fee structure is transparent and depends on the assets under management total. Our average fees fall between 65 to 85 basis points, and we do not charge for concentrated stock positions, or money market holdings (cash), and our charge for bonds is 25 basis points. We focus on the real rate of return, which means portfolio return after taxes, management fees, and other factors that erode your gains, so we factor this goal into fees.
How do you ensure that your interests are aligned with those of your clients?
We operate as fiduciaries, legally bound to act in our clients’ best interests, putting their needs first. We take pride in getting to know our clients and becoming trusted partners in their life!
How often do you communicate and meet with your high net worth clients?
We maintain regular communication through our client service team and schedule periodic meetings with our high-net-worth clients to review their financial plans, provide updates on investment performance, and address any questions or concerns. We provide weekly updates on the market.
Do you provide assistance with philanthropic endeavors and charitable giving strategies?
Yes, we provide guidance on philanthropic endeavors and develop customized charitable giving strategies, helping our high net worth clients make a meaningful impact while maximizing tax benefits. We have experience with Donor Advised Funds, trusts, and other philanthropic investment vehicles.
What is your approach to estate planning and intergenerational wealth transfer?
Our approach to estate planning involves working closely with clients and their legal advisors to create comprehensive plans that align with their wishes, manage estate taxes, and ensure a smooth intergenerational wealth transfer. Similar to our tax approach, we partner with experienced industry professionals to put the best team around you.
How do you stay up-to-date with market trends and changes that may affect high net worth individuals and families?
We monitor and research the market and its future prospects daily. We provide insight to the market several times per week, and we take pride in responding in a timely fashion to your questions and concerns.
How do I get started as a high-net-worth individual or family seeking your services?
You can reach out to jordan@chapwoodinvestments.com or call us at 972.865.2223.
Disclosures:
Neither Asset Allocation nor Diversification guarantee a profit or protects against a loss in a declining market. They are methods used to help manage investment risk.
Chapwood Investments LLC does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.