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Captrust Financial Advisors Review

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CAPTRUST

CAPTRUST is one of the largest registered investment advisor (RIA) firms in the U.S., as it currently manages hundreds of billions of dollars in client assets. The firm, which is based in Raleigh, North Carolina, has nearly 12,000 individual clients, around 40% of whom are high-net-worth individuals. There is also a substantial number of institutional clients at the firm. This is a fee-based firm.

CAPTRUST offers both wrap-fee and non-wrap-fee services, meaning the client can choose whether to pay one price for both investment advice and the cost of execution or to pay a fee for investment advice and pay all of the execution costs, such as brokerage fees, separately. 

CAPTRUST ranks on three different SmartAsset "Top Financial Advisor" lists. In fact, it holds the top spots on the top financial advisors in Raleigh, the top financial advisors in North Carolina and the top financial advisors in the U.S.

CAPTRUST Financial Advisors Background

CAPTRUST was founded in 2003. The CapFinancial Group, LLC, a company registered in North Carolina, owns just under 100% of the firm. CapFinancial Holdings is the majority owner of The CapFinancial Group. James Fielding Miller, the CEO of CAPTRUST, owns 40% of CapFinancial Holdings. The rest of CapFinancial Holdings is owned by other employees of the firm.

CAPTRUST Financial Advisors Client Types and Minimum Account Sizes 

Most of the clients at CAPTRUST are individuals. There are around 7,100 non-high-net-worth clients and around 4,600 high-net-worth clients. Institutional clients at the firm include banking or thrift institutions, investment companies, pension and profit-sharing plans, charitable organizations, state or municipal government entities, insurance companies and corporations.

The minimum account size to open an account at CAPTRUST is $50,000. This is not the minimum to maintain an account, though, so it's fine if the value of your account dips below that amount due to market fluctuations. 

Services Offered by CAPTRUST Financial Advisors

CAPTRUST offers a number of services to clients, including:

  • Investment advisory services
  • Establishment of investment objectives
  • Asset allocation analysis
  • Investment manager selection
  • Mutual fund evaluation
  • Ongoing investment manager/mutual fund due diligence
  • Ongoing quarterly performance measurement
  • Financial planning
  • Estate planning and legacy planning
  • Tax review
  • Insurance review
  • Charitable giving strategies
  • Cash flow planning
  • Family governance planning

Investment Philosophy

CAPTRUST uses both a risk-based approach and an outcome-based approach to asset allocation. There are a number of model portfolios available, using asset classes including U.S. and global equities, fixed-income securities, strategic opportunities, commodities and real estate. 

The outcomes-based models are as follows:

  • Capital preservation
  • Fixed income
  • Income
  • Core opportunities
  • Conservative growth
  • Moderate growth
  • Aggressive growth
  • All equity

The following managed account portfolios are risk-based models:

  • Income
  • Conservative
  • Moderate
  • Growth
  • Aggressive

CAPTRUST Financial Advisors Fees

CAPTRUST offers its services both with and without a wrap fee. If you opt to use a wrap fee, one fee covers all costs, including execution costs, such as brokerage fees. If you don’t, you’ll also be responsible for those fees in addition to advisory fees.

The fee schedule without a wrap fee is as follows:

CAPTRUST Non-Wrap Fee Schedule
AUM Annual Fee
$0 - $500,000 2.25%
$500,001 - $1,000,000 2.00%
$1,000,001 - $2,000,000 1.75%
$2,000,001 - $5,000,000 1.25%
Over $5,000,000 1.00%

The following are the fee schedules for CAPTRUST’s various wrap fee programs:

CAPTRUST SMA Fixed-Income Fee Schedule
AUM Manager and Platform Fee Minimum/Maximum CAPTRUST Maximum Fee
First $1,000,000 0.35% / 0.65% Up to 2.25%
Next $4,000,000 0.25% / 0.55% Up to 1.75%
Over $5,000,000 0.20% / 0.50% Up to 1.25%

 

CAPTRUST SMA Equity Fee Schedule
AUM Manager and Platform Fee Minimum/Maximum CAPTRUST Maximum Fee
First $1,000,000 0.60% / 1.00% Up to 2.25%
Next $4,000,000 0.45% / 0.85% Up to 1.75%
Over $5,000,000 0.40% / 0.80% Up to 1.25%

 

CAPTRUST Portfolio Managed Accounts Fee Schedule
AUM Maximum Fee Rate
First $1,000,000 Up to 2.25%
Next $4,000,000 Up to 1.75%
Over $5,000,000 Up to 1.25%

Below is an overview of roughly what you can expect to pay for non-wrap fee advisory services at CAPTRUST:

*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. Fee amounts above represent accounts without a wrap fee.
Estimated Investment Management Fees at CAPTRUST Financial Advisors*
Your Assets Fee Amount Without Wrap Fee
$500K $11,250
$1MM $21,250
$5MM $76,250
$10MM $126,250

What to Watch Out For

There are no disclosures on CAPTRUST’s SEC-file Form ADV.

CAPTRUST is sister companies with a broker-dealer, and many of its advisors also serve as broker-dealer representatives. This means they can earn commissions for selling securities. Some advisors are also insurance agents and can earn commissions. This presents a potential conflict of interest, though the firm's fiduciary duty requires it to act in clients' best interests at all times.

Opening an Account With CAPTRUST Financial Advisors

To find a CAPTRUST Advisor, use the advisor directory on its website. You can also call the firm's headquarters at (919) 870-6822.

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

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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.

Least
Most
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