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Frequently Asked Questions
Are You Ready? » Frequently Asked Questions
- Which organization oversees and regulates your firm?
- What do these financial industry designations mean?
- Why don’t I see information about your securities licenses through the FINRA Broker Check system?
- How do I verify the CERTIFIED FINANCIAL PLANNER™ (CFP ®) designation?
- How do I verify the firm’s status as a Fee-Only financial planner?
- What type of authority will Interactive Capital Management have over my accounts?
- Are your fees deductible?
- Can you abscond with my money?
- Is my information “safe” with your Firm?
- Is my information confidential?
- Do you guarantee returns?
- Can I speak to some references?
- Do you hold my money directly?
- Is my money safe at TD Ameritrade?
- Are your fees competitive to other providers?
- Do you have a minimum portfolio size?
- Can you provide advice related to my retirement plan at work?
Which organization oversees and regulates your firm?
Interactive Capital Management is a Registered Investment Advisor Firm regulated by the Texas State Securities Board. To verify the firm’s status as a Registered Investment Advisor Firm, you may follow this link to the Security and Exchange Commission’s website here: www.sec.gov Click the link to Check out brokers & advisors (under Investor Information), then Research Investment Advisor Firms. The following page will allow you to do an Investment Advisor Search, from here you can type in the firm name (Interactive Capital Management) or search by CRD #112419. With the results, you can follow the links to the firm ADV form filed with the SEC and view the firm registration status.
What do these financial industry designations mean?
You can perform a search of your advisor’s designations and learn more about those designations and what they mean through the Financial Industry Regulatory Authority here: The FINRA Designations Search Page
Why don’t I see information about your securities licenses listed through the FINRA (formerly NASD) Broker Check system?
The FINRA Broker Check system verifies securities licenses held by individuals registered with a Broker/Dealer. Licenses such as the Series 7, 63, are essential to receiving commissions from the sale of investment or insurance products. With the exception of the Series 65, they are not required for active status as a Registered Investment Advisor Firm. As a Registered Investment Advisor Firm, our Investment Advisors are Fee-Only Financial Advisors registered with the Texas State Securities Board. As such, the firm accepts no commissions from the sale of insurance or investment products. Therefore, no Investment Advisor Representative at ICMC actively holds (and is not required to hold) a securities license with any broker-dealer.
How do I verify the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation?
To verify the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation, visit the CERTIFIED FINANCIAL PLANNER™ Board of Standards website
How do I verify your status as a Fee-Only financial planner?
We are members of the National Association of Personal Financial Advisors (NAPFA). NAPFA has strict business and ethical standards for its members in addition to allowing ONLY those planners who accept no commissions from the sale of insurance or investment products. To verify membership status as a NAPFA member, visit NAPFA’s website and click the link to “Find a NAPFA Registered Advisor”, then search Sugar Land, Texas, or Houston, Texas, area.
What type of authority will Interactive Capital Management have over my accounts?
- Make transactions in your TD Ameritrade account in order to allocate your investments according to your financial plan and/or the Investment Policy Statement created for you;
- Request a check be sent directly to you, or a transfer be made to a like-named account. No funds can be withdrawn or likewise transferred out in any other name except for your own. For example, TD Ameritrade will not send a check to “John Doe” at our request, but they will send one to you at our request.
- Deduct management and investment advisory fees from your accounts per our Comprehensive Financial Planning or Investment Management agreement Fee Schedule. Account debits in excess of the normal or usual investment advisory fees (noted in our form ADV which is on file with TD Ameritrade) are not allowed. TD Ameritrade has safeguards in place to prevent excessive investment advisory fee debits from being processed.
- View online, monitor, and maintain, and discuss your accounts directly with you
IRS Code Section 212 states that investment advisory and financial planning fees incurred may be deductible as miscellaneous itemized expenses to the extent they exceed 2% of your adjusted gross income. Other miscellaneous itemized deductions which fall into the same category are fees paid for a safe deposit box, estate planning fees, tax preparation fees, attorney and legal fees, and more. We encourage our clients to ask their accountant or CPA about the deductibility of fees.
No! Your portfolio will be custodied at TD Ameritrade Institutional. For example, implemented safeguards to protect you and your financial assets are:
- Any money leaving your account will only be sent by the custodian directly to your address of record and in your name. Your address cannot be changed without your written consent, and the Institutional Service Team verifies your signature matches the one they have on file for such a request;
- Any money transferred out of your account (with the exception of the firm’s investment management fees) may only be transferred into an account with the exact same registration. For example, an account in the name of John and Jane Doe may only transfer to another account in the exact name of John and Jane Doe;
- TD Ameritrade retains on file a copy of the Firm’s most current Form ADV. Attempts to debit your account for investment management fees substantially in excess of the norm are immediately flagged as an excessive percentage of your portfolio and validated with an appropriate reason only (in the case of client fees for several accounts being taken from one account, for example).
Is my information safe with your Firm?
The Firm uses security policies, physical security measures, and security technology which are the best practices for financial firms. While no guarantees can be made in the current day and age of cyber hackers and other criminals, we have consulted with leading computer and physical security experts. We continue to update our security practices as new threats emerge. Regular tests are conducted on our security measures.
Is my information confidential?
Yes. By law, we cannot disclose your private information to anyone but you directly, or your other financial advisors (attorneys, accountants, and estate planners) with your consent only. Our client’s information is highly confidential and we take this matter very seriously.
No. Instead we put together solid, focused financial and retirement plans for our clients designed to help them achieve their goals. Financial and investment planning is more of an art than it is a science, and we cannot predict the future nor guarantee returns in any form.
Can I speak to some references?
Absolutely! We work diligently for all of the Firm's clients and as such, the overwhelming majority of them are happy to provide a reference regarding the Firm’s services. While not every client chooses to provide a reference (some clients wish to maintain their privacy), you can contact us directly, and we will be happy to contact Firm clients for permission to pass along their names and contact numbers to you.
Do you hold my money directly?
No. We will not take possession of cash or securities in any form. We encourage clients to send deposits via our office; we will forward deposits to our custodians, tracking their progress. Alternately, we will provide you postage-paid envelopes to forward cash and/or securities directly to your custodian and provide you detailed instructions on the safest manner for doing so.
Is my money safe at TD Ameritrade?
TD Ameritrade is a member of the Securities Investor Protection Corporation (SIPC). The assets you custody with TD Ameritrade are insured by SIPC up to $500,000 for each separate account including up to $100,000 in cash. Such insurance DOES NOT protect your investment principal from market fluctuation or volatility; however, it does provide an amount of protection in the event of your custodian going out of business.
Are your fees competitive to other providers?
Firm fees are not only competitive; they’re a great value for the service provided. Using our expertise, wisdom and knowledge adds value to your financial and investment planning! We’re happy to provide you an apple to apple comparison of the fees you’re paying (or the proposed fees you’ll pay another advisor) and our fees. Our fees are simple to understand and reasonable. Most importantly, we believe in FULL DISCLOSURE. We never hide or bury our fees like other brokers or "financial advisors" who are commission or "fee-based".
Do you have a minimum portfolio size?
There are no minimum asset requirements for comprehensive financial planning clients. However, asset management clients are encouraged to have $500,000 under management because transaction costs may be burdensome in achieving an adequately diversified portfolio.
Can you provide advice related to my retirement plan at work?
Yes, as part of the financial and investment planning process, we help to ensure your investment assets, both through work-related retirement plans and separately held at the directed custodian, will work in concert together.
