What kind of investment firm are we considered to be?

• We are considered to be a fee – based registered investment advisor which aims at helping clients meet their financial goals.  We take pride in out proactive approach that we feel to be very beneficial in management of a client’s financial portfolio. 

What is a Registered Investment Advisor?

• A Registered Investment Advisor is a firm or person that advises clients on investment matters on a professional basis.

How is Capital Management compensated for advisory and investment services?

• Capital Management Group charges a percentage of assets under management. Fees vary depending on the product.

What is a Form ADV?

• A Form ADV is a legal document issued by the Securities Exchange Commission (SEC) or the state that ensures we are indeed who we claim to be – a Registered Investment Advisor.  This form allows complete disclosure regarding all aspects of how we do business.  It also outlines our educational backgrounds and fee structure.  This can be accessed and viewed through the forms disclosure page via our web page.

How can I decide if Capital Management Group’s financial services are right for me?

• During a free initial meeting we will review a potential clients financial situation.  Upon learning their financial goals and objectives we will point out any suggestions or recommendations that may help you to meet these financial goals.

How can I contact Capital Management Group for an appointment?

• Go to the Contact Us link via our company webpage.

What personal information do I need available for the initial meeting?

• A copy of the account holder’s latest financial statements and your latest tax return.  In order for us to completely understand your financial situation, we will ask you to discuss: any sources of income, financial and real estate assets, current insurance coverage, retirement plan contributions and balances, mortgages and other debt, college funding and estate planning. 

 What are the differences between a Roth IRA and a Traditional IRA?

• ROTH IRA – Roth individual retirement accounts were established as part of the Taxpayer Relief Act of 1997.  There are several major differences between a ROTH IRA and a Traditional IRA.
  • For single filers – the income limits for making a contribution include up to $95,000 for 2006 and $99,000 for 2007 ($95,000 - $110,000 in 2006 and $99,000 - $114,000 in 2007 for a partial contribution)
  • For joint filers – up to $150,000 for 2006 and $156,000 for 2007 ($150,000 - $160,000 in 2006 and $156,000 - $166,000 in 2007 for a partial contribution).
  • For 2006 and 2007 the maximum annual contribution is $4,000.00.  In 2008 the maximum will rise to $5,000. 
  • Catch – up contributions can be made by individuals age 50 and older ( in the calendar year of their contribution ) can contribute an additional $1,000 for 2006 and 2007 for a total of $5,000.
• Traditional IRA
  • Has no income limits
  • For 2006 and 2007 the maximum annual contribution is $4,000.00.  In 2008 the maximum will rise to $5,000.
  • Catch – up contributions can be made by individuals age 50 and older ( in the calendar year of their contribution ) can contribute an additional $1,000 for 2006 and 2007 for a total of $5,000.

What is an IRA Rollover?

• An IRA Rollover is identified as the process of transferring the holdings of one defined contribution plan to another retirement plan without suffering any tax consequences. 

What is a required minimum distribution?

• A required minimum distribution is defined as the amount that Traditional, SEP, and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1^st following the year they reach 70.5.  Following this initial distribution, a distribution must be made each of the following years.

What is an annuity?

• Deferred Annuity – a type of an annuity contract that delays payment of income, installments or a lump sum until the investor elects to receive them.  This type of annuity has two main phases, the savings phase in which one invests money in the account, and the income phase in which the plan is converted into an annuity and payments are received.  Earnings on a deferred annuity account are taxed only upon withdrawal, providing the annuity with a tax benefit.  A deferred annuity can be either variable or fixed. 

• Immediate Annuity – an annuity that is primarily tailored to suite a retired individual that is in the need income stage of his/her life.  An immediate annuity can benefit such an individual’s financial situation by protecting them against outliving their assets, and also by protecting ones assets from creditors.

• Variable Annuity – a type of annuity (insurance contract) in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment.  The remaining income payments can vary depending on the performance of the managed portfolio. 

• Fixed Annuity - a type of annuity (insurance contract) in which, the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies.  The insurance company guarantees both earnings and principal.

What is a defined contribution plan?

• A defined contribution plan allows employers and employees to establish retirement savings accounts for each individual employee.  There are several types of contribution plans which include profit sharing plans, money purchase plans, 403(b) plans, and 401(k) plans. 
• The employer can contribute on behalf of employees, the employer can match employee contributions, or employees can contribute the entire amount for the retirement account.
• The amount available upon retirement depends on the amount of contributions on behalf of each employee and the performance of the investments
• The maximum amount that an employee can contribute is currently limited to $15,500 on an annual basis.
• Catch – up contributions for a 401(k) are currently $5,000.00. 

What is a 403(b) plan and what purpose does it serve?

• A 403(b) is also known as a tax sheltered annuity plan.  This type of retirement plan is commonly used for employees of certain public schools, employees of certain tax-exempt organizations or ministers.  Generally the retirement plan is generally invested in either annuities or mutual funds.

What is a 401(k) plan and what purpose does it serve?

• A 401(k) plan is a qualified plan established by employers to which eligible employees make salary deferral contributions on a post or pre tax basis.  Employers may make matching or non-elective contributions to plan on behalf of eligible employees and may also add a profit sharing feature to the plan.  Earnings accrue on a tax-deferred basis. 

What is an ETF?

• An ETF (exchange traded fund) is a security that tracks an index, a commodity of a basket of assets like an index fund, but it trades like a stock on an exchange, thus experiencing pricing changes throughout the day as it is bought and sold.