As a fiduciary, aren’t you creating a conflict of interest by managing the Camelback Fund and directing planning clients to it?
No, for several reasons.
First, our investment management clients are charged the same flat rate for that service as are investors in the Camelback Fund. Consequently, Foothills Financial Planning has no financial incentive to choose the Camelback Fund over competing investments. Additionally, for the typical financial planning client we develop an asset allocation plan prior to selecting any specific investments. The investments from Camelback Fund will only draw from a couple of asset classes. By design, much of an investment plan we create will require investment options that cannot be fulfilled via the Camelback Fund. Finally, and perhaps most importantly, the Camelback Fund is a Spoke Fund®, which means that a significant percentage of my family’s liquid assets are invested in the fund. That can be considered a conflict, certainly, but I consider it a conflict that an investor should welcome.
For more questions and answers on the Camelback Fund, please see our Camelback Q&A page.