Frequently Asked Questions

What is an Arbutus?

It is a beautiful evergreen tree with a reddish papery bark, found along the coast from BC to California. It's also known as madrona or madrone. It reminds me of many happy times at the ocean, up and down the West Coast. For more information and photos, click here.

Where does Arbutus Wealth Management, PLLC serve clients?

We are located at 950 12th Ave, Suite 150 in Longview, Washington for in-person appointments. We have clients in numerous states and are also available for meetings by phone or web conference. Let us know your preferred way to connect.

What services do we provide?

We offer many services from comprehensive wealth management to methodical financial planning to focused and more limited financial coaching to insurance options and reviews as well as traditional investment management. We can coordinate with you, your tax preparer, your attorney, and your other professionals to help ensure you have a complete, tailored plan that is designed for you and your family.

What does it cost?

There is no charge or obligation for your initial consultation. No sales pitch or pressure. Just two people deciding if they want to work together. 

We'll sit down to talk about where you are, where you want to go, and the pros and cons (and costs) of various paths. Want more details now? Services and fees are laid out on the Your Services page.

What is a CFP® Professional?

In addition to the security and insurance licenses Roy holds as a Financial Advisor, Roy is a CERTIFIED FINANCIAL PLANNER® professional (or CFP® professional). This is an independent certification with rigorous requirements for experience, professionalism, and ethical standards, as well as a comprehensive CFP® Exam.

Find out more about why you should choose a Certified Financial Planner® professional.

CFP Board owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER® in the U.S.

What is a fiduciary?

CFP® professionals commit to providing a fiduciary standard of care to their clients. That means client interests come first. It means three duties: the Duty of Loyalty, the Duty of Care, and the Duty to Follow Client Instructions. Learn more here.

Is Roy a fiduciary?

Yes! CFP® professionals like Roy commit to a fiduciary standard of care to their clients. 

Can you help me set up a retirement plan for my business?

Yes! We can review options such as a SIMPLE IRA, 401(k), or Cash Balance Plan - and we can make it work with your personal retirement plans.

What is the difference between a trust and a will?

Your will is your instruction for the settlement of your estate. When you pass, your executor takes your estate (your assets and liabilities) through the probate process. The probate court ensures that creditors are paid and that beneficiaries receive their inheritance according to your will (or according to state law, if you don't have a will). Appointing a guardian for minor children is very important. When probate concludes, any disputes will have been settled. Heirs will have clear title to property like vehicles or real estate.

A trust is a legal entity set up to accomplish certain goals. It may hold investment accounts, real estate, or other assets. You can be the trustee and beneficiary of your own trust. Or, you can set one up for your spouse, family members, charity, or some combination you choose. If you pass, your successor trustee takes over the management of the trust. Assets do not go through probate. A trust can be irrevocable (you can't change it once it's set up) or revocable (you can change it) or irrevocable on your death.

Trusts may be important for you if... you have multiple real estate holdings (especially in more than one state), a special needs family member, or a gross estate with substantial assets. Trusts can be amazing tax-minimization tools for high-net-worth individuals or families. It's an interesting topic and I can help you think through your options.

We can talk with you generally about trusts and wills but we cannot provide legal advice. See your attorney to determine whether you need a will or a trust or both or neither.

If you do have a trust, we can open and manage an investment account for it.

What if I need an attorney or a CPA?

We can coordinate with your existing professionals or can make referrals, as needed.  We have a large group of referral resources to draw from to help make sure you are taken care of.

What if I need a document notarized?

We provide that service, too! Heather is a notary public and can notarize client documents whether they are related to your accounts with us or are for your other needs.

Is there an app to see my accounts?

Yes, there is! After we open your accounts, use the Account View portal (through LPL Financial) for online access. Or, download "LPL Account View" from your app store if you prefer a dedicated app on your device. Click here to find out more information on the features of the app.

What is the difference between a traditional IRA, a Roth IRA, and a 401(k)?

These are all retirement accounts to encourage saving and investing over your working life in order to provide income in retirement. You don't have to have one, but they're usually a very important part of retirement planning. The type of account you choose affects how and when you may have tax deductions.

An IRA is an Individual Retirement Account, tied to your Social Security Number. A traditional IRA is funded with pre-tax money. It gives you a tax deduction now, when you may have a high income. You pay tax on distributions in retirement, when you may be in a lower income tax bracket because you're not working or not working as much. A Roth IRA is funded with after-tax dollars. There is no tax deduction now. There is no tax when you take the funds out later in retirement, even if you have large investment returns.*

A 401(k) plan may be offered by your employer. If you choose to contribute a portion of your income, you can have substantial tax and investment benefits. An employer match, if offered, has the potential to accelerate those benefits.

• How much can you put into your IRA or 401(k)? The IRS determines limits each year. (Look up the current limits here.)
• How much should you put into your IRA or 401(k)? Whew, there are a lot of variables to consider. Do you have earned income? Does your employer offer a retirement plan? Do you have a debt emergency?
• Should you have a Roth or traditional IRA? I can't give tax or legal advice, but we can talk about the pros and cons of each.
  

* Please note:

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.  Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.  A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

This information is for educational purposes only and is not intended to provide any specific advice or recommendation.  It is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.