Frequently Asked Questions

What is a Registered Investment Advisor?

A Registered Investment Advisor (RIA) is an advisor, registered with the State of California, who manages the investments of others. As a Registered Investment Advisor, Verdant Capital must comply with a host of regulations designed to protect the client.

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How are you different?

At Verdant Capital Management, our client’s interests come first. We offer our clients what large financial firms can't, individual service. Verdant Capital has the expertise of the large brokerage firms without the high fees and impersonal service. Being independent means being faster and more flexible to serve our clients better. Our recommendations are objective and unbiased; we use a wider range of solutions from various providers than those by brokers and dealers working on a sales commission basis. Clients get tailored solutions for their needs and a fast response to their questions.

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Do you only handle retirement planning?

Although Verdant Capital specializes in retirement planning, we are fully capable of helping you with all your other financial planning needs.

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What does fee only mean?

Fee only means that fees are generally based on the size of the client's portfolio where a defined percentage is taken each quarter. All conflicts of interest regarding compensation are removed; we do not accept any commission.

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What other forms of compensation are used by other financial planners?

Some planners are compensated entirely by commissions from the providers of products recommended and sold. Others referred to as "Fee-based" or Fee-offset", charge a fee and receive commissions from selling products.

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How will I be billed?

Most clients choose to have their management fees withdrawn from their primary account automatically. You may also choose an alternative method (e.g. mailed invoice and payment)

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Are management fees tax deductible? 

Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on a personal tax return.

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Do you have access to my funds?

No. Client accounts are custodialized through a brokerage firm, i.e., Charles Schwab. Our clients authorize us with a power of attorney to have the discretion to buy and sell securities in their account. Only the client can authorize funds to be released from their accounts. The securities in client’s accounts are covered under the Securities Investor Protection Corporation (SIPC) by the brokerage firm.

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Can you provide me with references?

A list of references of current clients is available upon request.

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Does Verdant Capital provide any accounting or legal services?

In general, our clients secure their own CPAs and attorneys independently. However, if the need arises, we can provide a list of professional references in specific fields to complement our financial services.

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