Frequently Asked Questions

Scroll down for answers to frequently asked questions

  1. Is Red Spruce Capital a broker?
  2. Is Red Spruce Capital a hedge fund?
  3. Does the government regulate Red Spruce Capital?
  4. Where does my money actually go? How are accounts protected?
  5. What types of accounts can the firm manage?
  6. What is the minimum investment required?
  7. What is the price?
  8. Can I leave at any time?

1. Is Red Spruce Capital a broker?

No. A broker links buyers and sellers (and charges commissions for transactions). Red Spruce Capital is a Registered Investment Advisor and does not receive commissions for transactions.

2. Is Red Spruce Capital a hedge fund?

No. While we may employ various hedging and "alternative" strategies for our clients, we are not a hedge fund. As a Registered Investment Advisor, we have a legally binding fiduciary duty to hold clients' interests above our own in all matters.

3. Does the government regulate Red Spruce Capital?

Yes. The firm and its Portfolio Managers are registered with the Pennsylvania Department of Banking and Securities. Red Spruce files and maintains all applicable licenses as required by the state securities boards and/or the Securities and Exchange Commission ("SEC"), as applicable.

4. Where does my money actually go? How are accounts protected?

Red Spruce Capital holds discretionary authority (trading authorization) over client accounts in order to provide day-to-day portfolio management services. Red Spruce Capital is not the custodian of the assets – assets are placed in the custody of Shareholders Service Group and Pershing LLC. Since 1939, Pershing has provided brokerage execution, trade clearance, securities data processing and investment access to registered broker/dealers. An explanatory brochure about SIPC account protection is available at www.sipc.org. Additional insurance through Lloyd's of London also provides excess account protection for held assets.

5. What types of accounts can the firm manage?

Account types available for discretionary management include:

  • Individual (Taxable)
  • Joint Tenant (JTWROS, Tenants in Common, Community Property)
  • Custodial (UTMA/UGMA)
  • Trust
  • IRA (Traditional, Roth)
  • 401(k) or 403(b) Rollover
  • Education Savings (Coverdell)
  • SEP IRA
  • SIMPLE IRA
  • Qualified Retirement Plan (Profit Sharing)
  • Corporate
  • Limited Liability Company
  • Sole Proprietorship

6. What is the minimum investment required?

Red Spruce Capital has no minimums. As a Registered Investment Advisor, the firm offers portfolio and investment management services to individuals and businesses in a wide variety of income and asset ranges. Please contact us to discuss our services in more detail.

7. What is the price?

Red Spruce Capital's annual fee is calculated as a percentage of assets under management. The annual fee for the Portfolio Management Service is 1% of assets under management.

8. Can I leave at any time?

Yes. Our contracts for all services clearly state that clients can choose to terminate our services at any time. No fees are incurred beyond those charged for services that we have already performed.