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We value honesty and integrity. We put clients' interests ahead of our own.
We price our services to deliver significant value at a reasonable cost.
We do not earn fees or commissions from third parties.
We are disciplined, rational thinkers who are not influenced by institutional group think.
We have decades of experience working and investing in financial markets.
We have achieved our own financial independence.
We are only compensated as a percentage of assets under management and/or on a project consulting basis. We neither take a percentage of clients’ gains nor are we compensated by third parties for recommending certain investments. We do not sell investment products or receive commissions.
We are not affiliated with any banks, insurance firms, brokerages, other investment firms, or mutual fund companies. All of our compensation comes from the work we do directly on behalf of our clients. Therefore, we are not subject to pressures to sell anyone else’s products or services; nor are we obliged to invest for short-term performance or to follow any institutional “group-thinking” or “herd mentality.”
This means that we have an ethical and legal obligation to put clients’ interests ahead of our interests. Whether we are providing financial consulting, investment management, or both, our actions are based on a comprehensive understanding of the individual client’s financial status, risk tolerance, and stated goals. We seek the best, low-cost investments to achieve those goals.
Rational Capital Advisors LLC is a firm registered with the Pennsylvania Department of Banking and Securities as an Investment Adviser under the Pennsylvania Securities Act of 1972. The principals of the firm, Robert Lutey and Yvonne Fu, are registered Investment Advisory Representatives.
We offer 2 types of services – Advice-only Financial Planning and optional Investment Management. A comprehensive Financial Planning process for new clients typically lasts 1-2 months. Clients can opt for a more targeted Financial Planning engagement – several hours or sessions – to address specific topics, such as a second opinion on asset allocation, an IRA withdrawal strategy, etc. Investment Management involves RCA actively investing some portion of the client’s assets in pursuit of their income and/or long-term capital compounding goals. This service involves periodic management fees and is meant to be a long-term commitment but can be terminated at any time with a 30-day notice by the client or by us.
We are paid based on either an hourly rate or a flat rate per project, depending on the time and effort required. A comprehensive career transition planning will usually be charged at a flat rate so as to cap the cost. A few hours of direct consultation with a client would be billed at an hourly rate.
Clients will be billed quarterly for Investment Management based on a percentage of the assets under management. There is a sliding scale of fees based on the size of the assets.
Your assets will be held with Charles Schwab in your name and you will give us the authority to manage the assets while retaining full control over them.
We can meet in person if you choose to travel to our office, located at 300 Brookside Ave., Ambler, PA. We are also happy and able to meet virtually.
Financial advisors have different practices and fee structures. We feel that a comprehensive Financial Planning service can add value, and might even pay for itself, for example, through greater tax efficiency and/or lower investment costs. Do you need a financial advisor to manage your assets? It depends on many factors, such as your goal, your knowledge base, and your time commitment. DIY can work for some and hiring an expert works for others. Our Financial Planning report will offer suggestions for low-cost investment allocations in case you are happy to DIY. On the other hand, our Investment Management service is typically designed to oversee a portion of your assets in the pursuit of income generation or income plus some capital appreciation. A joint approach – part DIY, part Investment Management – may be the best arrangement for some. Do your homework and speak to a few financial advisors to find the right path for yourself.
We are happy to speak with a prospective client about their financial status and the kind of help or advice they are seeking. We do not charge for an initial consultation because Rational Capital Advisors only charges when we have first decided that we can be of real service to a particular client, given their need, and then have formalized the type of service to be performed, whether consulting, investment management, or both. If we feel we cannot add value after discussing the prospective client’s objectives, then we will either advise them to seek other, appropriate help or suggest how they can best implement some financial/investment plan in a DIY fashion.
Robert and Yvonne have advanced degrees (B.S., MBA, and MS for Robert, B.S., MBA, and Ph.D. for Yvonne) and decades of experience both working in the financial services industry and investing across a wide range of asset classes through multiple market cycles. Both are registered Investment Advisory Representatives in the state of Pennsylvania. Here are their bios.
Being rational to us means thinking independently, analyzing tangible information, and making decisions based on facts and logic. We named our firm Rational Capital Advisors to remind ourselves to stay true to the rational way of managing one’s assets and financial life. Many irrational behaviors we observe, such as group-thinking and emotion-based decision making, can be detrimental to one’s financial health.
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RATIONAL CAPITAL ADVISORS, LLC
Greater Philadelphia Area, PA