Strada Financial

No. Many of our clients are out of state which makes meeting in person impractical to do so regularly. Some clients even prefer to meet virtually, and we can generally accommodate these requests using technology such as Microsoft Teams and ZOOM.

Yes! We currently serve many clients from out of town and even out of state.  We facilitate meetings with technology like Microsoft Teams and ZOOM. If we are licensed in the state in which you are located, we can work with you. And if we aren’t licensed in your state, we can get licensed very quickly, usually within days for securities and within a week for insurance.

We will never “bill” you for our time like an attorney or other hourly service provider. There shouldn’t be anything that prevents you from seeking counsel from us. The vague answer is “it depends.” It depends on the investments that we are using on your behalf and on what platform we are using them. Typically, we are compensated by either fees or commissions. Fees are usually deducted as a small ongoing flat agreed-upon percentage from your investment account. Commissions can be paid by you through an investment like an A-Share mutual fund purchase, or by the investment or insurance company that we are using on your behalf, like an insurance policy, annuity, or structured note.

A fiduciary is a person or organization that is legally and ethically bound to put their clients’ interests ahead of their own. We are guided by a “prudent person standard of care,” seeking to avoid or at the least disclose any conflicts of interest. With an Accredited Investment Fiduciary® on our team, we feel our role is to safeguard the interests of those we serve, prioritizing trust and good faith.

A fee-only adviser in an adviser that is compensated based on a set rate for the services they provide, rather than earning commissions from selling products or executing trades. The set rate may be an hourly rate they charge for services or a set percentage flat fee that is charged on accounts they manage. Some advantages of fee-only advisers are 1) Transparency, 2) No commission on individual securities. (promoting specific products or companies), and 3) Generally, Adherence to the fiduciary standard. While we don’t call ourselves fee-only advisers, we are more “fee-usually” advisers. Most of our compensation comes from investment accounts that we actively manage and charge an agreed-upon flat % of assets. From time to time, there are instances where a product that pays a commission is in the best interest of the client. Examples would be life insurance, commissions on certain mutual fund purchases, structured notes, and annuities. It’s also important to note, however, that advisors operating in the brokerage space are also required to operate in the best interest of their clients.

Our financial planning process varies by client and the needs that we are solving for. Generally, there is a 4-step process: 1) Discovery: Fact and data gathering, 2) Presentation: Discuss the plan, deficiencies, recommendations, and scenario manipulation, 3) Implementation: Move money where necessary, confirm steps to take in compliance with the plan, 4) Monitor: Review the plan annually, implement changes, monitor, and confirm action steps.

Regulation is a complicated but necessary part of our business. There are many “layers” of regulation. The Financial Industry Regulatory Authority (FINRA) is the SRO that regulates state and federal securities licensing and is authorized by Congress to ensure that the broker-dealer industry operates fairly and honestly. The Securities and Exchange Commission (SEC) is an independent regulatory government agency that oversees many functions, but specifically regarding our day-to-day operations, oversees enforcement of securities laws and takes action against violations of those laws. The SEC plays a crucial role in maintaining the integrity of the US financial markets, protecting investors, and promoting transparency and fairness. Investments are protected and insured by the FDIC and the SIPC. In our custodial NFS accounts, FDIC protections on money market balances are $1 million, and SIPC protections on investments are up to $500,000. It’s important to note that these protections are in place to protect against the insolvency of a particular bank or investment company, not to protect against investment losses or fraud.

As of 2024, Adam and Richard have a combined 55 years of experience in the financial services industry. Richard has been an adviser since 1996 and holds a BA in Business Administration from Fresno State. Richard holds the SIE, Series 6, Series 63, and Series 65 securities licenses. Adam began his career in 1997 working for Wall Street investment companies (see bio) and started his private practice in 2010. Adam is an Accredited Investment Fiduciary® and holds the SIE, Series 7, Series 24, Series 82TO, Series 63, Series 66, and Series 31 securities licenses. Adam graduated from Vanguard University of Southern California with a BA in Finance. Both Adam and Richard are insurance licensed in the state of CA.

Yes. Our first meeting is all about discovery. We are a fit with a lot of investors, but not everybody we meet is a fit for the services we provide and how we work. The first meeting is all about “discovering” each other, asking questions, and communicating what we do and how we do it. There is never any pressure to make any decisions on that first meeting, and we never charge directly for our time.

A robo-advisor is a digital platform that provides automated, algorithm-driven financial planning and investment services with little to no human interaction or supervision. The biggest benefit of using a robo-advisor is the lower fees vs the typical fee-only financial advisor. They automatically place your investments in pre-constructed portfolios based on your risk tolerance, time horizon, and other factors. Most large online-experience firms like Vanguard, Fidelity, and Schwab will have some sort of robo-advisor and they would generally be safe to use.

Diversification and asset allocation are possibly the most misunderstood buzzwords in our business. We’ve all heard the term “Don’t put all your eggs in one basket.” Simply put, asset allocation is like having multiple baskets and diversification is like having different kinds of eggs in each basket. Asset classes include stocks, bonds, and cash. Asset allocation is placing a specific % into one of these classes, like a 60/40 stock/bond portfolio. Diversification would then be taking that 60% stock portfolio and diversifying that “basket” into 10 stocks or stock mutual funds. Both are important in investment management, but asset allocation is what determines roughly 90% of the risk in a given portfolio.

Firstly, it’s important to note that these answers are for educational purposes only, and every situation is different. Consult with a financial professional prior to making any decisions. In 2024, traditional IRA accounts allow a saver to invest $7,000 ($8,000 for investors age 50 and over) a year into their IRA and deduct those contributions on your tax return. Those dollars are then considered after-tax and all your future withdrawals from that account in retirement are fully taxable as ordinary income. ROTH IRAs, on the other hand, are not deductible as contributions are made and contributions are considered after-tax dollars, with the same contribution limits per year. Both IRA types defer taxes on growth until withdrawals are made, but the difference is that, as long as withdrawals are made after age 59 ½, the ROTH IRA withdrawals will be state and federal tax-free. It’s clear how powerful of a tool a ROTH IRA can be when tax planning for retirement income. That said, IRA contributions can only be made when the account owner has earned income, usually from a job that issues a W-2 income document at the end of the year. Some 1099 income can qualify as well, so check with your tax advisor. 100% of the child’s income can be deposited into an IRA for their benefit up to the annual maximum. For 2024, that maximum is $7,000 for a child. If your children have earned income and you want to open a ROTH IRA on their behalf, you absolutely can make deposits into those accounts. That will give them a (potentially) tax-free head start on their retirement journey!

Great question! There is no one answer since every person has different needs, goals, and histories. We look at current assets, income needs, risk tolerance, and family health history to produce a strategy that serves you best. For example, if you don’t need the extra income now and you have a family history of longevity, we would recommend waiting until at least Full Retirement Age (FRA) or age 70 to begin taking SSI. Every year you defer SSI, your payments go up by approximately 8% until age 70, when the 8% increases discontinue (although cost of living adjustments (COLA) will still occur).

The strategies we use to manage investments vary a great deal depending on the needs of each client. We like to start with fee-only solutions, but those are not always in the best interest of the client, especially in buy-and-hold scenarios where we don’t expect much activity in an account. The bottom line is that we have flexibility to choose the platform and the investment strategy that fits with each client’s goals, needs, and risk tolerance.

At least annually. Sometimes we meet more often, depending on each client’s needs. We will meet as often as is necessary.

If your money is invested in one of our brokerage custodial accounts, it will be held with our custodian of choice National Financial Services (NFS). NFS is a Fidelity brand and is one of the largest custodians serving the financial advisory community. From time to time, we invest money with investment partners such as American Funds, Jackson National, and various life insurance companies. In these cases, those partner companies will custody your funds, and will almost always be a trusted and well-known brand.

Adam and Richard are successors for most of their client households and business clients. Due to licensing requirements, some of Adam’s clients will be serviced by his OSJ branch office, TAG Advisors. TAG Advisors has over 300 constituent advisors across the country and is well-equipped to service all clients should the need arise.

We are not licensed tax advisors, so we do not prepare tax returns or give tax advice. However, taxes are a very important consideration through all phases of retirement and business planning. We carefully consider tax implications of any financial decision, both now and into the future to maximize the outcomes for you, your family, and your business.