Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Selection of Others Advisors
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Charitable Organizations
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Other
Oak Root LLC Overview
OAK ROOT LLC is a financial advisory firm based in Montecito, CA. Founded in 2015, this registered investment advisory firm offers investment advice only to its clients. OAK ROOT LLC operates on a fee-only payment arrangement, which means that clients are charged a fixed fee for services rendered, and there are no commissions or incentives to recommend investments. At OAK ROOT LLC, the primary focus is on providing comprehensive financial planning services to individuals and small businesses. This includes portfolio management, retirement planning, tax planning, estate planning, and risk management. Their team of experienced investment advisors creates custom investment strategies tailored to each client's unique financial situation, goals, and risk tolerance. Additionally, OAK ROOT LLC provides clients with access to other qualified advisors who can help manage their finances. These include attorneys, accountants, and insurance specialists. In this way, OAK ROOT LLC ensures that their clients receive comprehensive and holistic financial advice that helps them achieve their goals and protect their assets. With a commitment to transparency, integrity, and personalized service, OAK ROOT LLC is a reliable and trustworthy financial partner for individuals and businesses alike.
OAK ROOT LLC prides itself on providing exceptional financial services to a diverse range of clients. They serve individuals seeking financial management for personal wealth, as well as high net worth individuals with more substantial assets requiring a higher level of attention and expertise. OAK ROOT also serves charitable organizations, helping them maximize donor dollars and optimize their endowment strategies. When it comes to fee structures, OAK ROOT LLC offers competitive pricing options depending on the specific services they provide. For those needing Asset Under Management (AUM), a percentage-based fee structure is available, ensuring costs are aligned with the performance of the assets. The firm also provides other types of fees, including hourly or fixed flat rates for client projects that are more customized. Overall, the firm aims to tailor each pricing strategy to the specific needs of their clients, ensuring that each client is treated individually and with unique care.
Typical Clients, Fee Structures & Investment Minimum
Unfortunately, the Part 2 Brochure for OAK ROOT LLC does not mention what their investment minimum is.
How This Office Can Help Sonoma, CA Residents
Oak Root LLC is a financial planning and investment management firm that specializes in helping clients in Sonoma, CA. The firm helps residents of the city to navigate through various financial challenges that they might face. Some specific situations include retirement planning, asset management, tax planning, estate administration, college planning, and even divorce planning. Sonoma, CA has a high cost of living, which makes it challenging for most people to save and invest. Oak Root LLC is committed to helping clients to achieve their financial goals, regardless of their current financial situation. Whether clients are just getting started with investing or looking for ways to manage their existing investment portfolio, Oak Root LLC provides customized financial planning services tailored to each client's unique needs, goals, and risk tolerance levels. The firm aims to provide ethical, transparent, and independent financial advice that helps clients to achieve long-term financial health and stability.
Services Offered by Oak Root LLC
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Oak Root LLC most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Unavailable
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
Firm Headquarters
This firm has no other locations.
State Registrations
Oak Root LLC is registered to service clients in the following states:
- California
Disciplinary History
Oak Root LLC does not have any disclosures. Please visit it's Form ADV for more details.