Capstone is owned 100% by JMF Wealth Management, LLC. Capstone has been providing
advisory services since 1999.
As of December 31, 2023, Capstone managed $333,317,515 on a discretionary basis and
$3,056,449 on a nondiscretionary basis. In addition, we advised on $75,694,780 of self-
directed retirement account assets.
InvestmentManagementServices:
Capstone manages investment portfolios for individuals (including high net worth
individuals), qualified retirement plans, trusts, charitable organizations and foundations as
well as corporations and small businesses. Capstone works with clients to determine the
client's specific investment objectives and these may be set forth in a written Investment
Policy Statement that describes an asset allocation model that conforms to a client's risk
tolerance level. Investment and portfolio allocation software may be used to evaluate
alternative portfolio designs. Capstone evaluates clients' existing investments with respect
to their investment policy statements and works with new clients to develop a plan to
transition from client's existing portfolio to the portfolio recommended by Capstone.
Capstone then continuously monitors client's portfolio holdings and overall asset allocation
strategies and holds regular review meetings with clients regarding their account, as
necessary.
Capstone will typically create a portfolio of passively and/or evidence-based mutual funds
and exchange traded funds, and, where appropriate, can use model portfolios if the models
match a client's investment policy. Capstone will allocate a client's assets among various
investments taking into consideration the overall management style selected by the
client. Mutual funds or exchange traded funds (ETFs) that follow a passive and/or evidence-
based investment philosophy generally have low holdings turnover. Consequently, the fund
expenses are generally lower than fees and expenses charged by other types of funds. Client
portfolios can also include some individual equity securities where disposition of these
securities would present an overriding tax implication, or the client specifically requests they
be retained for a personal reason. Capstone manages portfolios on a discretionary and, in
very limited circumstances, on a non-discretionary basis. A client may impose any
reasonable restrictions on Capstone’s discretionary authority, including restrictions on the
types of securities in which Capstone may invest client’s assets and on specific securities,
which the client may believe to be appropriate.
Capstone may also recommend fixed income portfolios to investment management clients,
which consist of managed accounts of individual bonds. Capstone will request discretionary
authority from investment management clients to manage fixed income portfolios, including
the discretion to retain a third-party fixed income manager.
On an ongoing basis, Capstone will answer clients’ inquiries regarding their accounts and
review periodically with clients the performance of their accounts. Capstone will
periodically, and at least annually, review clients’ investment policy, risk profile and discuss
the re-balancing of each client's accounts to the extent appropriate. Capstone will provide to
investment manager any updated client financial information or account restrictions
necessary for investment manager to provide sub-advisory services.
In addition to managing the client’s investment portfolio, Capstone may consult with clients
on various financial areas including income and estate tax planning, business sale structures,
college financial planning, retirement planning, insurance analysis, personal cash flow
analysis, establishment and design of retirement plans and trust designs, among other
things.
Selection of Independent Managers
Capstone may retain third-party investment advisers to manage a portion of the clients’
assets. Pursuant to the terms of the investment advisory agreement, Capstone will have the
discretion to hire and terminate these third-party advisers.
Pursuant to its discretionary authority, Capstone will retain a fixed income securities
manager. The fixed income securities manager will be provided with the discretionary
authority to invest client assets in fixed income securities. The manager will also monitor the
account for changes in credit ratings, security call provisions, and tax loss harvesting
opportunities (to the extent that the manager is provided with cost basis information). The
manager will obtain Capstone’s consent prior to the sale of any client securities.
Additionally, Capstone may allocate a portion of a portfolio to an independent third-party
investment advisor (“Independent Manager”) for separate account management based upon
individual client circumstances and objectives, including, but not limited to, client account
size and tax circumstances. Pursuant to the terms of the investment advisory agreement,
Capstone shall have the discretion to appoint and terminate these third-party advisers. The
specific terms and conditions under which a client engages an Independent Manager may
also be set forth in a separate written agreement with the designated
Independent Manager. However, not all Independent Managers require a separate advisory
agreement with the designated Independent Manager. Disclosure of the use of an
Independent Manager and their additional fees will be provided to clients. Independent
Managers utilized by Capstone include BSP, Dimensional Funds Advisors, Parametric and
Aperio.
Financial Planning Services
Capstone may utilize the services of Delegated Planning, LLC, an independent, registered
investment advisor that provides financial planning support services to other registered
investment advisors. The services provided by Delegated Planning, LLC are tailored to
Capstone’s specific requests and generally include the following:
● Developing new or updating existing financial plans for clients of Capstone,
encompassing specific planning areas. These areas may include:
o CashFlowAnalysis: Create a statement of cash flow to illustrate
inflows and outflows of cash. Determine if calculations match
expectations of financial projections.
o BalanceSheetAnalysis: Create a net worth statement.
o RetirementAnalysis: Projecting if clients will have the resources to
achieve their stated retirement goals. If not, provide optional strategies
and choices to improve the probability of success.
o SurvivorshipNeedsAnalysis: Determine if current life insurance
coverage is appropriate given clients’ resources and stated survivorship
goals. If not, provide optional strategies and choices to improve the
probability of success.
o DisabilityNeedsAnalysis: Determine if current disability insurance
coverage is appropriate given clients’ resources and stated financial goals.
If not, provide optional strategies and choices to improve the probability
of success.
o Long‐TermCareNeedsAnalysis: Run a projection to stress test the
impact of long-term care costs on retirement. Provide optional strategies
and choices to improve the probability of success.
o EducationFundingAnalysis: Determine if clients will have the
resources to achieve their stated education goals. If not, provide
optional strategies and choices to improve the probability of success.
● Researching issues relating to any of the items listed above.
All financial plans and deliverables are reviewed and approved by Capstone, who then
presents the final plan to our client. Although Delegated Planning may have contact
with Capstone’s clients, communications generally relate to data gathering and
communications at the request of Capstone. No advice is provided directly to Capstone’s
clients by Delegated Planning without pre-approval from the Financial Advisory Firm.
EmployeeBenefitRetirementPlanServices:
Capstone also provides advisory services to participant-directed employee retirement
benefit plans. Capstone will analyze the plan's current investment platform, and assist the
plan in creating an investment policy statement defining the types of investments to be
offered and the restrictions that may be imposed. Capstone will recommend investment
options to achieve the plan's objectives, provide participant education meetings, and
monitor the performance of the plan's investment vehicles.
Capstone will recommend changes in the plan's investment vehicles as may be appropriate
from time to time. Capstone generally will review the plan's investment vehicles and
investment policy as necessary.
For certain retirement plans, Capstone also works in coordination and support with
Buckingham Strategic Partners, LLC. Retirement plan clients will engage both Capstone and
Buckingham Strategic Partners, LLC. Buckingham Strategic Partners, LLC will provide to the
client additional discretionary investment management services and will exercise
discretionary authority to select the plan investments made available to the plans’
participants by selecting and maintain the plans’ investments according to the goals and
investment objectives of the plan.
Capstone will continue to work with plans to monitor plan investments, provide fiduciary
plan advice including regular considerations of the goals and objectives of the plan, and
provide participant education services to the plan.