Safety in Investing: 5 Questions to Ask Before Hiring

an Investment Advisor

ctrust.com | 941-493-3600 | ©2015 Caldwell Trust Company

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Selecting your financial advisor is one of the most important decisions you will ever make. They will be responsible for thepreservation of your wealth.

Picking a banker is like interviewing somebody for a job. You need to know their philos-ophy, background and ask fundamental questions. You and they have to have a meeting of the minds abut the level of risk you can mentally and financially afford before they can help you. There are specific questions you should always ask before hiring an investment advisor. Having information such as where your assets are held, and how your advisor gets paid should heavily influence your decision. The solvency of the company should be constantly monitored, and personal service should be of the highest priority. Of course we would like you to choose Caldwell Trust Company if you are currently in need of trust services, investment management, estate planning or retirement planning services, but if you choose to not work with us, we want to make sure that you find a reputable company to work with.

How do you build that trust? Here are five questions that will help you get started.

1. Who Has Custody of my Assets?

A large part of protecting your assets is making sure they are custodied with a company that has a history of stability. You also want to make sure they are custodied electronically to avoid fees associated with transferring assets physically.

Our Point of View For example, our clients’ assets are custodied electronically at the Depository TrustCorporation, or DTC. The DTC is one of the largest depositories in the world. In existence since 1973, it holds quadrillions of dollars of client assets.

In addition, we are examined by the Department of Banking & Finance of Florida every 18 months. The department compiles a report which is given directly to our Boardof Directors.

ctrust.com | 941-493-3600 | ©2015 Caldwell Trust Company

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2. How Safe are Your Assets in Light of Recent Scandals?

The Madoff scandal helped people realize that many things happen when you pick a money manager. You need to know who is giving you investment advice, who holds your money and who invest it.

Our Point of View We contend that there is no safer place to hold assets than a trust department or trustcompany because custody inside a trust department or company never leaves the client’s ownership.

3. Are you a Fiduciary?

The difference between a broker and a fiduciary is the agency with which they are regis-tered. Brokers are associated with FINRA, while fiduciaries are affiliated with the Securities and Exchange Commission (SEC.) The SEC holds investment advisors to a higher fiduciary standard, and they charge using a fee-based system rather than the commission-based system most brokers use.

However, some fiduciaries carry both certifications, allowing them to work for commission under their FINRA registration when it is beneficial to them. It is imperative that consumers are aware of which certifications their broker or fiduciary carries, and know how their investment advisor will bill. Our Point of View We believe fiduciaries should be held to a higher standard, putting their client’s best interest ahead of their own commission. In fact, it’s one of the core values our company was founded upon.

ctrust.com | 941-493-3600 | ©2015 Caldwell Trust Company

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Be sure that your fiduciary holds a similar reverence and passion for your investments, and that they place their responsibility to you and your family over any personal profit.

4. Do you Sell Commissioned Products?

Some companies sell products that come at a high cost to their clients. Annuities and front load mutual funds carry particularly high fees, and have extreme penalties for early withdrawals. Internal fees tend to be high in these situations, and are not easy to calculate. When commissioned products are involved, there tends to be a conflict of interest and the client loses. Products tend to be added when not needed and altered on an on-going basis with the client paying for all along the way.

Our Point of ViewOther companies follow the same protocol as we do; they don’t sell individual products. They instead provide all of their services using only a fee-based system. We then remain free of conflict and solely focus on providing the best service only to our clients.

Each of us in this organization lives and breathes a belief that we are engaged in a truly noble calling, the demands of which are unlike those of any other profession. This is because standards for fiduciaries mandate a level of unwavering conduct, loyalty and personal integrity matched by few other disciplines in this changing and uncertain world. To serve as your trustee or fiduciary, one must find comfort and pleasure being immersed daily in an environment of uncompromised decency and honesty, earning and receiving total confidence from our clients by doing genuine good for them and their families. For this rare individual the personal rewards are high.

— Roland G. Caldwell, Founder

ctrust.com | 941-493-3600 | ©2015 Caldwell Trust Company

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5. Who Audits You?

When a company is caring for your assets, you want to ensure that they have their finan-cial house in order. This should be done through auditing. Performed by an independent agency, unqualified audits place a high priority on detail, and accuracy.

Our Point of ViewCaldwell Trust is audited by one of the largest, independent auditing firms in Southwest Florida. The unqualified audit is performed annually, and then reported to our Board of Directors. In addition, we employ an independent auditor who periodically examines our client accounts. These audits are also reported directly to our Board of Directors.situation we can best determine if we are a good fit for each specific client.

Building Trust

Building trust with an advisor is paramount. Make sure your investments are held in a safe place with a company that has an established reputation, and that your advisor is a fiduciary keeping your best interests at the forefront over commissions. Know how often the organization is audited, and by whom. Asking these five questions should give you an idea about the advisor’s integrity, as well as a chance to see if there is good chemistry between you.

If you have questions about Caldwell Trust Company and the services we provide, please don’t hesitate to contact us.

“Integrity, intelligence,Insight, and impeccableservice is our guarantee”

Call us toll-free at 800-338-9476 or email info@ctrust.com

Venice Office

1400 Center RoadVenice, Florida 34293 Voice: 941-493-3600 Fax : 941-496-4660

Sarasota Office

1561 Main Street Sarasota, Florida 34236

Voice: 941-926-9336 Fax: 941-926-9335