The Capital Directions Team is excited to announce that we will soon become part of Savant Wealth Management, a full-service, SEC Registered Investment Advisor, fiduciary wealth management firm based in Rockford, Illinois.
We estimate that the closing of this acquisition will take place on or about February 22, 2023.
What Can You Expect?
With the start of 2023, we’re reminded that the new year always brings new opportunities. At Capital Directions, we’re particularly excited to announce a unique opportunity— one that will strengthen our team and give us more resources to better support your advisor and you.
Capital Directions will soon become part of Savant Wealth Management, a full-service, SEC Registered Investment Advisor and fiduciary wealth management firm based in Rockford, Illinois and founded in 1986. We anticipate officially combining with Savant on or about February 22, 2023.
Ever since our founding in 1985, Capital Directions has been committed to placing our clients’ interests first in every decision we make — and remaining independent has allowed us to provide the best advice, resources, and value to our clients through the years. Recently, however, we felt the need to do more and take our services to a new level — to make significant investments in technology and specialists to evolve and enhance our services as your portfolio manager and back-office support to your advisor. That’s when we approached Savant Wealth Management.
Capital Directions’ CEO, Dennis Covington, has known Savant co-founder and CEO Brent Brodeski for 15 years. From the beginning of our relationship we have always been impressed with Savant’s client-focused approach and positive culture.
Our two firms have much in common — the same core values, the same fee-only structure, the same investment philosophy, the same unblemished reputation, and a shared partner in Charles Schwab as our primary custodian.
After meeting with and getting to know more of the Savant team over these past six months and completing extensive due diligence on Savant’s business, culture, and investment philosophy, we decided to combine with Savant. This combination represents a great opportunity to enhance our capabilities as well as our range of services.
The bottom line: joining with Savant gives Capital Directions more resources and capabilities to continue doing what we do best. As we finalize our agreement over the next month, we will work to seamlessly transition our clients and employees to Savant. You can rest assured that there will be no changes to our service model, fees, or your investments and custodial accounts (i.e., Schwab).
You’ll continue to work with the same Atlanta-based team that currently serves your advisor and you. If you have any questions about our new relationship with Savant, don’t hesitate to give us a call.
Together with Savant and your financial advisor, we’re excited to continue being your trusted portfolio manager for years to come.
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Frequently Asked Questions
Why did you decide to partner with Savant?
Our decision to join Savant evolved from our desire to serve our advisors and their clients with best-in-class portfolio management and back-office services. Because Capital Directions is prospering, we had the choice to remain independent and maintain the status quo. However, after months of conducting due diligence and weighing the potential benefits to our clients, the advisors we support and our team, we felt that Savant presented the best opportunity for us to better serve our clients and positively impact more lives.
Who owns Savant?
Savant is privately held, and majority owned by employee-owners. Upon the closing of our transaction with Savant, Capital Directions’ existing shareholders – Dennis Covington, Terry Hartigan, John McMillen, and Richard O’Donnell – will become employee owners. Dennis will be the second largest employee-owner of Savant. We anticipate that several younger members of our team will soon have the opportunity to become employee-owners.
Where will my investments be held?
Your investments will continue to be held in your current custodial accounts (i.e., Schwab). The merger with Savant will not change your account number(s) or online access credentials at the custodian. We anticipate little to no change in your actual investments and will only recommend changes that are in your best interest and work to support the achievement of your financial plan.
What kind of investments does Savant use?
Savant shares Capital Directions evidenced-based investment philosophy that is implemented primarily using low-cost mutual funds and exchange traded funds. Like Capital Directions, Savant has access to the same institutional investment opportunities that we utilize. In addition, Savant is also able to provide expertise and strategic advice when handling an executive client’s concentrated employer stock position and is currently building out offerings in direct indexing.
How is the investment strategy determined at Savant, and how often could it change?
Savant has an investment committee made up of eight professionals who meets regularly to discuss investments. The committee screens and selects investments for particularly investment categories (such as domestic large-cap value) and may adjust or remove investment categories. In addition, the committee sets criteria for rebalancing and reviews macro-economic and regulatory issues.
Who will I work with after Capital Directions joins Savant?
The Capital Directions’ team members your advisor currently works with will not change. Your advisor and you will gain access to Savant’s larger group of subject-matter experts and significant investments in technology. Our entire Atlanta-based team will continue to operate at our current office location in Sandy Springs, GA.
Will my fees increase?
No, your fees will remain the same for the foreseeable future. If your investments change, there may be higher or lower costs associated with those investment vehicles but we will continue to make those decisions as a fiduciary – with only your best interests in mind.
How does Savant get paid?
Like Capital Directions, Savant is a fee-only, fiduciary, SEC Registered Investment Advisor and does not sell financial products and does not receive fees from third parties. Clientsyou’re your advisor and Savant directly for advice and other services.
Will I have online access to my accounts?
Yes. There will be no change to your access credentials at your custodian (i.e., Schwab) and you will continue to receive performance reporting updated daily through the online portal provided by your advisor.
Who will provide the year-end tax report for my accounts?
You will continue to receive an accurate year-end statement and 1099 tax report from your custodian(s), (i.e. Schwab). Your advisor will also continue to provide tax planning information consistent with prior years.
Will my investment accounts be managed on a discretionary basis?
Yes. Like Capital Directions, Savant manages all accounts on a discretionary basis. Additionally, your current advisor will continue to provide advice around your personal investment needs. Capital Directions’ portfolio management team is transitioning into Savant’s and will continue to rebalance your portfolios, raise cash to meet distribution needs, and tax-loss harvest as necessary and in accordance with your Investment Policy set by your advisor. Also, Savant’s investment research team and investment committee monitor the performance of each investment in the models. These committees may, from time to time, substitute other investments that could enhance the performance of the model.
Will there be any tax implications from my transition to Savant?
No. This transition will not create any tax event for your portfolio / account(s). While your custodian account(s) (i.e., Schwab) will remain the same, they will be managed by Savant in support of the Investment Policy set by your advisor. We will continue to manage your accounts with your best interest in mind.
How do I withdraw money from or add money to my account?
Simply contact your advisor as you normally would do so.