Resources & Articles

Frequently Asked Questions

How safe is my money? 
Who holds my money? 

Who is Royal Alliance Associates?
Are you employed by Royal Alliance or Pershing? 
Who oversees Cassaday & Company, Inc.?
In the event of a natural disaster or other major regional emergency, will I still be able to contact Cassaday & Company to conduct business?
How do I know that you won’t run off with my money?
What is your average sized managed account?
How can I be assured that I will receive the same attention as your larger accounts?
Do you have a minimum account size?
What are your fees?
Do I have to sell all of my current investments to work with Cassaday & Company, Inc.?
Do you confer with me before doing any transactions?
What is a fiduciary and why is having a financial advisor that acts as your fiduciary important?
What licenses and designations do your professionals have?
The Cassaday & Company, Inc., Inc. employees seem very young. Why is this and what is their level of experience and training?

 

 

 

How safe is my money?
Your accounts are insured against the failure of Pershing or Royal Alliance by Securities Investor Protection Corp. (SIPC), a U.S. Government-chartered corporation. Accounts are insured by SIPC up to $500,000 (maximum of $100,000 in cash). Additional insurance is provided by private insurers up to an unlimited account value. An explanatory SIPC brochure is available upon request or at www.sipc.org.

Note: This does not protect your account from market loss.

top

 

Who holds my money?
Our custodian is Pershing LLC, located in Jersey City, New Jersey. Pershing was founded in 1936 and is the largest independent clearing/custody firm. Pershing is a division of The Bank of New York Mellon Financial (NYSE BNY). The Bank of New York, founded in 1784 by Alexander Hamilton is the oldest bank in the nation. As of June 30, 2014, BNY has $400.7 billion in assets and $7,392 million in revenues.

top

Who is Royal Alliance Associates?
Our broker dealer (BD) is Royal Alliance Associates, Inc. Royal Alliance is an independent broker dealer and an unaffiliated third party. While giving us access to the securities markets, Royal Alliance provides compliance and supervisory oversight of Cassaday & Company for our clients.

www.royalalliance.com

top

Are you employed by Royal Alliance or Pershing?
No. We are employees of Cassaday & Company, Inc. Royal Alliance and Pershing are independent third parties that provide services to us.

top

Who oversees Cassaday & Company, Inc.?
Royal Alliance Associates provides Cassaday & Company, Inc. with legal, compliance and supervisory oversight. Representatives of Cassaday & Company, Inc. must demonstrate that firm has followed industry standards in terms of investment recommendations and their suitability for clients. We have an on-site audit conducted by Royal Alliance on an average of twice per year. At this audit, our books and records are reviewed over several days to ensure that we are complying with all industry rules and regulations as well as adhering to Royal Alliance’s strict procedural requirements.

Royal Alliance also surveils our email traffic to make sure there are no misrepresentations or violations of regulations surrounding email communications with clients.

top

In the event of a natural disaster or other major regional emergency, will I still be able to contact Cassaday & Company to conduct business?
The desktops and servers at Cassaday & Company, Inc. are housed on a highly secure, advanced virtual cloud environment. This environment is accessible from anywhere, has unlimited storage capacities, 24/7 monitoring (of both the server operations and data center), and failover protection with daily backups.  If operations are disrupted at our office, we are able to work with full capabilities at any location with Internet access (this includes mobile devices). Our servers are housed at multiple data centers in different areas of the country, ensuring near-100% uptime if there is a regional emergency.

top

How do I know that you won’t run off with my money?
Client assets are held by a third party public custodian, Pershing LLC. All checks from clients must be made payable to Royal Alliance Associates. Cassaday & Company, Inc. employees do not have access to client assets. We can generally only move money from your account in the following fashion:

  • A wire transfer to another account in the exact same name at another institution with your written permission.
  • A check payable to the parties listed on your account registration (e.g. Mr. & Mrs. Jones) and mailed to your address of record.
  • Other transfers are possible but only with the client’s express written permission and back-up verification and authorization from Royal Alliance and Pershing.

top

What is your average sized managed account?
Our fee-based managed accounts average more than $1,500,000 per household.

top

How can I be assured that I will receive the same attention as your larger accounts?
Based on our systematic management process, our clients own what we believe are the very best choices in all categories. Irrespective of size, our accounts generally own the same investments. Therefore, we manage your accounts based on our opinion of a specific holding. If our opinion changes, we make adjustments on all of the accounts at once. No account gets preferential treatment.

top

Do you have a minimum account size?
Yes, $500,000. These are "investable" assets and should not include your real estate, life insurance or personal assets.

top

What are your investment advisory fees?
Our Fee Schedule:

  • 1.20% on the first $500,000
  • 0.95% on the next $500,000
  • 0.75% on the next $1,000,000
  • 0.50% on the next $3,000,000
  • $5,000,000 and above = Negotiable

For Example:
If you have a $1.5 million dollar account, the fee would be calculated as follows:

  • The first $500,000 would be billed at 1.20% or $6,000
  • The next $500,000 would be billed at 0.95% or $4,750
  • The final $500,000 would be billed at 0.75% or $3,750

This would be a total annual fee of .97% or $14,500.

There may be wholesale transaction charges associated with changes to the portfolio; Cassaday & Company, Inc. receives no commissions in this arrangement. These are usually, but not always, less than $100 per year per account.

top

Do I have to sell all of my current investments to work with Cassaday & Company, Inc.?
No, we will not force you to sell any investments. Although, some investments may need to be sold in order for Cassaday & Company, Inc. to manage them for you. However, most investments will transfer to Pershing in kind without having to be sold. We will recommend changes that we believe could improve your portfolio with an eye toward the tax consequences, penalties and charges associated with any sale transactions.

top

Do you confer with me before doing any transactions?
Initially, we will develop an investment policy for you, explain our initial recommendations to you and get your input and approval. However, all future transactions will be done at our discretion and you will be notified of trade confirmations. These transactions will be done within the parameters of your Investment Policy Statement as discussed and agreed upon by you in our initial meetings. Any investments that you bring to us and specify should not be sold will remain in the account until we receive instructions or permission to sell.

top

What is a fiduciary and why is having a financial advisor that acts as your fiduciary important?
A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect property or money. It describes the relationship wherein one person has an obligation to act for another’s benefit in that person’s best interests. Cassaday & Company, Inc. acts in a fiduciary capacity for its investment advisory clients. 

When advisors recommend investments that pay commissions, a fiduciary relationship does not exist. Clients of Cassaday & Company, Inc. that are in fee based accounts do not pay commissions, hence a fiduciary relationship exists. You will be required to pay transaction fees pertaining to the trades done in your account, however Cassaday & Company, Inc., does not keep any of these charges.

We do have the ability to earn commissions on certain transactions but these cannot be executed in fee-based accounts. If a client wants to purchase an investment that carries a commission we can facilitate in a separate, non fee-based, account.

top

What licenses and designations do your professionals have?
Our team members hold various professional designations including:

  • CERTIFIED FINANCIAL PLANNER™   (CFP®)
  • Certified Financial Analyst (CFA)
  • Masters of Business Administration (MBA)
  • Certified Fund Specialist (CFS)
  • Certified Private Wealth Advisor (CPWA)
  • Certified Investment Management Analyst (CIMA®)
  • Chartered Mutual Fund Counselor (CMFC)
  • Accredited Estate Planner  (AEP®)
  • Chartered Advisor in Philanthropy (CAP®)
  • Chartered Retirement Planning Counselor (CRPC®)
  • Certified Long Term Care  (CLTC)
  • Certified Annuity Specialist (CAS®)
  • Accredited Investment Fiduciary (AIF®)
  • National Social Security Advisor (NSSA®)
  • Certified Estate Specialist (CES)
  • Certified Regulatory and Compliance Professional (CRCP)
  • Microsoft Certified Technology Specialist (MCTS)
  • Series 7 Registered Representative designation
  • Series 66 Uniform Combined State Law designation
  • Series 65 Investment Advisor designation
  • Series 24 Securities Firm Principal designation

 

The Cassaday & Company, Inc., Inc. employees seem very young. Why is this and what is their level of experience and training?

You are right! The average age of Cassaday & Company, Inc., employees is 33 years. This is by design and we believe our young staff distinguishes us from our competition in a positive way. Here’s why:

  1. Our average client is 63 years old.  When these clients are 83, our current employees will be 53 and still actively involved in the practice. This more fully assures that current clients will not be forced to look for a new advisor when they are older.

  2. Proper wealth management spans decades and, if done properly, generations.  Younger employees are more likely to provide continuity of advice through life’s transitions and establish relationships with our clients’ heirs.  Ongoing guidance coupled with a long term personal connection provides a more secure, comfortable and complete wealth management package.

  3. Our advisors and subject matter experts and their staff receive systematic training through continuing education, continuous improvement programs and attainment of industry certifications. This is a major component of the recognition we have received from the media, our peers and the community.

  4. Our proprietary training programs for our advisors last 5 years and include intense study, testing and experiential learning. Advisors spend more than one year each in the financial planning and investment management departments working on real-world client issues with hands-on guidance from our experienced staff. The next 3 years of training involve crafting and implementing comprehensive solutions directly for clients under direct supervision of our professional staff and senior advisors.

  5. At Cassaday & Company, Inc., we practice a culture of collaboration. All processes affecting clients are governed by this approach. All ideas that are implemented for our clients are a result of collaboration among our employees. This includes investment management, financial planning and corporate governance.  As a consequence, before implementation, all ideas and strategies are vetted, thoughtfully considered and voted upon by a group of highly trained and experienced stakeholders. 

  6. Our business model has been to hire outstanding people at an early age, before they develop bad habits, usually right out of college. We look for individuals who have innate skills that cannot be taught.  We then build positions around them based on their talent, passion and aptitude.  We have repeatedly witnessed that people who are young are eager to learn can be inherently smart despite their lack of experience.  When empowered to do their jobs by acting and thinking independently they become self-sufficient, highly motivated and loyal employees, irrespective of their age. 

    This cultural environment is cited by our employees as a primary benefit in surveys that have led to our regular recognition* as a Best Place to Work (Washington Business Journal), Great Place to Work (Washingtonian) and Best Places to Work in Virginia (VA Business Magazine). To view information and criteria on these awards, please go to http://www.cassaday.com/who-we-are/awards.

 

Additional Questions? Please contact us at Info@cassaday.com.

 

*Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation.