Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

Cabana Asset Management Review

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Founded by attorneys in 2007, Cabana Asset Management has grown in recent years, being named one of the fastest growing private companies or registered investment advisors (RIAs) in 2020 by publications such as Inc. and Financial Advisor Magazine. With billions in assets under management, the firm is also ranked on SmartAsset's top financial advisor lists for both Fayetteville, where the firm is headquartered, and Arkansas.

The fee-based firm also has an office in Plano, Texas, a suburb of Dallas. It developed its prioprietary Cyclical Asset Reallocation Algorithm (CARA), which seeks to reduce volatility and exposure to down markets. 

Cabana Asset Management Background

Co-founder Chadd Mason trained to be a lawyer but became especially interested in investing when his family lost an inheritance during the recession of the early 2000s. Several years later, he and Louis Shaff, a friend from law school, decided to start a venture, and while their families were on vacation together, chose Cabana as their firm name. Mason serves as CEO, while Shaff is the firm's CFO. Both men hold FINRA's Series 65 license, and Mason is a chartered wealth manager (CWM). Other staff members hold FINRA's Series 63, 65 and 66 licenses 

Today, the RIA is a wholly owned subsidiary of The Cabana Group, LLC. CI Financial Corp. holds a 49% stake in Cabana Group. 

Cabana Asset Management Client Types and Minimum Account Sizes

Cabana Asset Management works with individuals with and without a high net worth, pension and profit-sharing plan participants, trustees for collective investment trusts or collective investment funds, trusts, estates, charitable organizations and private investment funds. 

The firm does not have a set account minimum.

Services Offered by Cabana Asset Management

Cabana Asset Management mainly builds separately managed accounts (SMAs) for its clients. It generally allocates client assets into its proprietary Target Drawdown Portfolios. 

These portfolios are designed to anticipate, avoid or minimize loss while taking advantage of upmarkets. When the firm initiates the investment process, it identifies a “target drawdown percentage” that can span from 5% to 20%. Its CARA solution, which aims to identify assets that are particularly attractive in a given business cycle, allows investors to “remain fully invested at all times, set expectations for loss and actively participate in favorable market conditions.” Income and tax-efficient solutions are also available.

The firm’s advisors can also offer guidance on specific financial goals you may want to achieve. They can provide advice on: 

  • Cash flow analysis
  • Retirement analysis
  • Insurance analysis
  • Portfolio analysis and investment planning
  • Education savings analysis
  • Estate analysis

Additionally, Cabana Asset provides portfolio management services for sub-advisory and model clients and retirement plan services. It also sponsors a private fund that's generally available only to high-net-worth and institutional investors and serves as advisor to Cabana’s Investor Cash Management Program.

Cabana Asset Management Investing Philosophy

Cabana Asset Management’s investment philosophy generally involves engaging in methods that can allow investors to take advantage of market returns while anticipating and mitigating risk. 

It places clients in a Target Drawdown Portfolio based on the client's risk tolerance and investment goals. When selecting securities to build these portfolios with, the firm may engage in one or more of the following analytical methods: 

  • Fundamental analysis - determines a security’s true value by assessing the company’s financial strength and potential for stability and growth 
  • Technical analysis - projects short-term price movements based on historical patterns 
  • Economic analysis - involves studying several economic factors such as money supply, interest rates, earnings and changes in gross domestic product (GDP)

Fees Under Cabana Asset Management

For portfolio management services, Cabana Asset Management charges fees in the form of a percentage of assets under management (AUM). Unfortunately, the firm doesn’t publish its fee schedule. However, the firm states in its brochure that its maximum portfolio management fee is 2% of assets under management.

For financial planning services, Cabana Asset Management charges fees on a fixed or hourly basis:

  • Fixed fees - $500 to $5,000 for broad-based planning services. The client would be notified in circumstances where the fee would exceed $5,000.
  • Hourly fees - These fees range from $150 to $300 for specific services. They does not apply to clients who want a broad-based financial plan.

What to Watch Out for

Cabana Asset Management has no disclosures of legal or disclipinary action on its Form ADV.

One thing to be aware of, though, is that through common ownership, Cabana Asset Management is affiliated with other financial services firms. Among them is Cabana Financial, LLC, an insurance agency. As a result, some Cabana Asset Management advisors may be incentivized to sell or recommend certain insurance products to earn a commission. To mitigate the potential for such conflicts of interest, Cabana Asset Management abides by fiduciary duty.

Opening an Account With Cabana Asset Management

To contact the firm, submit your email and phone number on the Cabana Asset's website.

All information was accurate as of the writing of this article.

Tips for Finding the Right Financial Advisor

  • Talk to at least three financial advisors before choosing one. This should give you a basic sense of investment strategies, advisor fees and more. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Ask candidates for their professional certifications do you have. You don’t actually need to have any training to be a financial advisor. So those who have professional credentials will have that much more preparation - and probably a speciality. For more questions to ask a financial advisor, check out this article.  

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research