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Waterloo Capital Management Review

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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.

Waterloo Capital Management is the successor to Virtus Private Wealth Management. The fee-based firm specializes in working with high-net-worth individuals, who make up a majority of its individual clientele. With headquarters in Austin, Waterloo Capital Management is on SmartAsset's top financial advisor list for the city. The firm also has an office in Chamblee, Georgia.

Waterloo Capital Management Background  

John Chatmas is the owner and CEO. With a degree in finance from the University of Texas at Austin, he has worked for Smith Barney, Morgan Stanley and Morgan Keegan & Company Private Client Group. He acquired Virtus, which became Waterloo Capital Management, in 2012. 

The team at Waterloo Capital includes advisors with various professional certifications, including chartered financial analyst (CFA) and chartered retirement planning counselor (CRPC). The firm's executive team holds a lot of experience. Bennet Woodward, chief investment officer, has worked at ING, GLOBALT and Raymond James and co-founded Black Diamond Investment Partners. Donald Simoneaux, director of alternative investments, has put in time at Cambridge Associates, where he specialized in private equity and venture capital, and Mikiel Featherston, director of planning, has more than 35 years of financial planning experience.

Waterloo Capital Management Client Types and Minimum Account Sizes

 As noted earlier, Waterloo Capital serves more individuals who have high net worths than those who don't. It also works with: 

  • Trusts
  • Estates
  • Retirement accounts
  • Pension and profit-sharing plans
  • Charitable organizations
  • Corporations and other business entities  

To open an account, you generally need at least $1 million dollars. The firm, though, may lower the requirement at its discretion or take into account a client's family members' accounts.

Services Offered by Waterloo Capital Management 

Waterloo Capital offers investment management either through internal portfolio managers or third-party money managers. It also provides financial planning, which, comes with asset management services or can be stand-alone. Financial plans can cover such topics as estate planning, charitable planning, corporate and personal tax planning, real estate analysis, insurance analysis, business financial planning, retirement planning, family and business succession planning, education planning, mortgage/debt analysis and lines of credit evaluation. 

Waterloo Capital Management Investment Philosophy  

Like many firms, Waterloo Capital customizes investments to individual situations but primarily invests for the long term. Unlike most firms, however, Waterloo follows the university endowment model. This means that your advisor tracks how universities are managing their money and use that to guide your investments.

The practice describes its allocation model as “structured, systematic and emotion-free.” The approach has four main tenets: 

  • The university-endowment model: Based on how endowment managers position portfolios, this model helps keep your assets protected during periods of volatility. 
  • Mathematical optimization: Waterloo’s tool analyzes trailing indices’ performance.  
  • Tactical overlay: This is the human touch that helps reposition portfolios in the face of changing market conditions, which means your advisors are watching your money for you and responding as needed.  
  • The final approach is keeping you, the client, at the forefront through constant conversation.  

When evaluating investments, Waterloo Capital primarily uses fundamental analysis. Assets may include: 

  • Equities
  • Fixed-income securities
  • Mutual funds
  • Alternative investments  

If deemed approriate, the firm may recommend outside money managers to help diversify your portfolio. 

Fees Under Waterloo Capital Management Portfolio Styles 

Waterloo Capital Management charges clients who utilize its investment management services an asset-based fee, paid quarterly, in advance, through a direct disbursement.

Investment management fees at Waterloo come in two versions: a standard fee schedule and a wrap-fee program. While standard investment management clients are required to cover fees associated with mutual funds, separate managers, broker-dealers and custodians, these charges are calculated into the wrap-fee program. This of course means that the wrap-fee program is slightly more expensive than its standard counterpart.

Comprehensive asset management and financial planning clients at Waterloo are afforded a similar fee schedule to that of investment management clients. On the other hand, financial planning and consulting clients are subject to hourly fees, fixed fees or a combination of the two.

Waterloo Capital Management Fees
Service Fees
Standard Investment Management Maximum annual fee: 2.00%
Investment Management Wrap-Fee Program Maximum annual fee: 2.50%
Comprehensive Asset Management and Financial Planning Maximum annual fee: 2.00%
Financial Planning and Consulting
  • Maximum hourly fee: $500/hour
  • Maximum flat fee: $250,000

Waterloo Capital's maximum fee for standard investment management is more than double the industry average of 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. That said, Waterloo will negotiate its fees. Learn more about advisors' typical costs here

What to Watch Out For

The firm reported no legal or disciplinary action in it latest filings with the Securities and Exchange Commission.  

Two things to note: Some advisors may be brokers or insurance agents, who collect transaction-based fees or commissions. These can pose a conflict of interest. Also, Waterloo Capital has an economic interest in Intelligent Wealth Solutions LLC, which is an affiliate and which Waterloo Capital may recommend to clients as a manager of separate accounts. This is also a potential conflict of interest. That said, Waterloo Capital is legally bound by its fiduciary duty always to work in its clients' best interests.  

Opening an Account With Waterloo Capital Management 

The easiest way to contact the firm initially is to send it a message with your email on its website. Alternatively, you can call (512) 777-5900.

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

Tips for Financial Planning

  • It's been said that a goal without a plan is only a dream. For help devising a plan so you can achieve your financial goals, consider hiring a financial advisor. Finding a 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.
  • Are you investing enough? It's hard to know. SmartAsset’s investment calculator will do the math. You just have to tell it how much you’re starting with, how fast you expect your nest egg to grow and how long you want to invest - and the calculator will help you figure out how much more you need to sock away every year to reach your savings goal.

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