REGISTERED INVESTMENT ADVISOR
Who we are
HYA Financial is a Registered Investment Advisor (RIA) only .
What we do
≤1% annual AUM includes:
Tax Loss Harvesting
Free Tax and Financial Consultations
Highly Trusted & Qualified Managers
Championing Client Transparency
Inclusive, Single- Fee ≤1%
No conflict of Interests
No Sales Quotas
Zoom or Phone Consultation
HOW WE ARE DIFFERENT
Different than most RIA's:
We ONLY manage client assets
We are NOT broker-dealers
Nor are we custodians client funds.
You will not move your funds, nor investments into HYA.
You retain your own broker/dealer/custodian of your funds independent of HYA.
The confusion may come from the following:
that MOST RIAs are also broker-dealers
Broker-dealers execute trades and are paid trade fees and/or commissions
RIAs Manage Assets by putting in trade-orders directly into our client's brokerage accounts.
See examples below....
Fee-based, really means, a low AUM Fee plus + some other fees, such as, but not limited to :
Low Investment Management fee at .50% or .75%+
CFPs selling Financial Planning,+
Insurance Agents Selling Life, Auto, Home or Health Insurance,+
Stock broker with Trading, Fees, Commissions, loads, incentives and quotas+
and/or CPAs selling tax or consulting services.
The above causes several conflicts of interests for fiduciary client management. Hence the wealthy go to firms like ours, that focus only on Investment Management with a Single-Fee.
% fee based on AUM
SINGLE - FEE RIA
legally have to consider client's best interest when managing portfolios.
fees usually a percentage of AUM
most require a large initial investments and maintenance balance, avg. $250k - $5million
usually will not have services sold, such as financial planning, insurance, accounting fees and other services.
the above professionals, have a Series 66 license and may not sell securities with this license.
Legal name of these people:Investment Advisor Representatives.
SINGLE - FEE RIA
trade based on suitability rule - deal fairly with customers
charge trade commissions and fees
receive sales loads
receive vacation incentives
sell proprietary securities
have sales quotas
have trade quotas
the above people, have a Series 7 license:
Legal name of these people:Registered Representatives, not stock brokers.
Ability to charge multiple fees based on services or securities sold
creates a client conflict of interest as a fiduciary and as a broker - using suitability rule
charge all brokerage service loads, fees and commissions + Management fee
charge insurance fees
other service fees
the above people, have a Series 7 and Series 66:
Registered Representatives and Investment Advisory Representatives
Ability to be both
RIA and Broker/Dealer & charge both fees
Unfortunately firms similar to HYA, usually require high initial investments and are either family, private equity firms or hedge-funds.
These are set-up for sophisticated (high wealth) and/or institutional investors and have high initial investment thresholds (over $500k to $5million). They are not known for transparency to clients and may have lock-out terms, ie you are unable to have access to your funds for the first 5-10 years.
Additionally fee-structures for private equity and hedge-funds are usually much higher at 2/20 - meaning 2% AUM annually, regardless of losses and 20% of profits from your portfolio.
Fortunately, HYA has all the quality perks of high wealth firms without the high fees & initial investment threshold.
To illustrate the differences, we all may look alike, but we are verydifferent...
**The below is in general and not a definitive list, for brevity we wanted to provide some clarity. Additionally please note stating a company is Single-fee or Fee-based RIAs are industry names and not legally defined. Therefore we urge you to look at your firms RIA Part 2A - Brochurel via this SEC site. **
Fiduciary Company Structure.
Active Value-Oriented Investing.
Comprehensive financial knowledge, education and experience.
Consistent in Client Consideration and Inclusion.
Simple Single-Fee Structure For Services
See our Brochure.
Our mission is to provide industry best practices in transparent, fiduciary investment management through:
relevant & reliable client fee disclosures
highly skilled, fiduciary management
inclusive, annual single-fee on AUM
simple company structure, w/out conflicts
Our creation began as a solution to Advance Fee Fraud and in the spirit of the Department of Labor's Proposed Fiduciary Rule. If this Fiduciary Rule had passed, it would have allowed for a single management fee for retirement accounts.
For example, in addition to a management fee, a financial advisor may charge commissions, incentive bonuses, incentive vacations, affiliate fees, 3rd party fees, administrative fees, etc. against your retirement accounts.
It is legal to charge these fees. Most legal actions against some investment companies are not for charging numerous additional fees, it is more likely for NOT DISCLOSING these fees and other pertinent information to their clients.
Please stay educated about how much is being deducted from your retirement accounts. We urge clients to ask any Registered Investment Advisor for their public regulatory filing called ADV-Part-2B,Brochure ("Brochure"). This document discloses most of the fees you may be charged in addition to their management fee.
It is not legally required to be on a website, but would be pertinent to your decision making.
Please read our brochure in its entirety, our fee structure is listed under Item-5. Please compare our company to your firm's filed brochure through the SEC's IA Public Disclosure Website: https://adviserinfo.sec.gov/
Note: Fee-only firms may charge advanced fees through affiliations with other financial institutions. We are independent from broker-dealers, financial institutions, insurance agencies and any other conflicts of interests.
OUR FOUNDERS STORY
Upon becoming a breast cancer survivor a second time, I was ready to retire from
my high stress and 80 hour a week, CPA career as a Institutional Financial,
Risk Audit Partner and Subject Matter Expert in Compliance & Valuations
of Derivative Instruments.
However, while in recovery at my parents house, I looked at my 74 year old dad's 401k &
IRA statements from a very large well known payroll service that offers retirement accounts
and a very large national bank, respectively.
My father, a blue-collar worker most of his life, at 74, still enjoyed going to work. Even after he had a mini-stroke in the previous year, he plugs on a 40 hour work-week, commuting 30 minutes into D.C each day. He, like most seniors enjoys being needed - I believe. :)
Looking at his statements from these companies, I saw that in his 401k account, there were several fee and commission withdrawals from trading in his investments and on re-investments over 15 years.
I calculated numerous times, hoping I was wrong, however these fees and commissions, reduced his retirement account by at least $100,000 over 7 years, and that is not the worst case! His average returns were 2-5% rather than 7-16% shown on his statements!
Additionally in his IRA accounts, I had seen that he was in highly inappropriate high risk investments. Also, that the company charged $50 monthly fees for his RMD sent monthly that should be free with ACH withdrawls?
I called FINRA on them both, they listened and offered absolutely no help. Unfortunately, my father had no time nor resources for a drawn-out legal battle.
Angry at myself for being to busy to see this earlier, I looked feverishly for better options. However was unable to find a financial advisor, or CFP, that was not working for commissions. I could not find a single RIA that wasnt requiring purchases of other services? As a Risk Auditor, I knew conflicts of interests very well, therefore did not understand how it wasn't a conflict of interest as fiduciaries for their clients???
Fee-based advisors, I found, meant mostly commissions plus fees. Fee-onlys had large thresholds and/or had many other auxiliary services.
And most true single-fees had $400k to $1million thresholds that were in partnerships with either private equity, or hedge funds, ie more risk and fees. Even-though, one may have that much why risk it in one basket?
I also found many advisors did not have a financial nor formal education or experience in financial instruments but were just well dressed sales-men.
Therefore with grit and integrity of my parents, I created my own RIA for numerous people like him.
A simply structured, single-fee investment company that provides quality investment management from experienced financial professionals to actually grow wealth rather than eradicate with inappropriate investments, commissions and fees.
Resources: Links to the SEC and Dept. of Labor warnings in our Brochure: Adv-Part 2A