Firm informa on
R J Cloud Advisors and Company (RJCAC) is a Registered Investment Advisor with the U.S. Securi es and
Exchange Commission, which is organized as a corpora on under the laws of the State of Oklahoma.
RJCAC was founded in March 2017 and the sole shareholder is Randall J. Cloud. This disclosure brochure
provides informa on regarding the qualifica ons, business prac ces and the advisory services provided
by RJCAC.
Investment Advisory Services
RJCAC offers investment advisory services to individuals, high net worth individuals, trusts, estates,
corpora ons, and charitable organiza ons in Oklahoma and in other states (each referred to as a client).
Financial Planning
RJCAC provides financial planning services to individuals and families as part of its investment advisory
services. Services are provided in several areas of a client's financial situa on, depending on their goals,
objec ves, and financial situa on.
This planning or consul ng will focus on one or more areas of need, including, but not limited to
investment planning, re rement planning, personal savings, educa on savings, and other areas of
client’s financial situa on.
Family Office Services
RJCAC provides family office services which consist of various services for personal and business financial
ma ers. The scope of such services will be outlined in an agreement between RJCAC and the client prior
to services being provided.
In providing the agreed upon Family Offices Services, RJCAC will rely extensively on the accoun ng, tax,
and consul ng services of RJ Cloud PLLC which is owned by Randall J. Cloud and who is also the owner of
RJCAC.
The agreed upon services, fee, terms, and condi ons will be outlined in a wri en agreement and fully
executed by RJCAC and client prior to RJCAC providing any services.
In addi on, RJCAC may recommend the services of other specialists and professionals outside of RJCAC
as necessary to provide the agreed upon services to clients. RJCAC does not receive referral fees for the
recommenda ons made to other specialists and professionals. The client is free to accept or reject any
recommenda on from RJCAC. Although RJCAC may have experience with these service providers, RJCAC
is not responsible for the services provided by these other service providers and is not responsible for
any losses caused by the ac ons of any third par es.
Pension Consul ng Services
RJCAC provides non-discre onary re rement plan services. RJCAC will work with plans to monitor
planning investments, provide fiduciary planning advice including regular considera ons of the goals and
objec ves of the plan, and provide par cipant educa on services to the plan.
Account Por olio Management
RJCAC provides customized investment advisory solu ons for its clients. This is achieved through client
interac on while providing discre onary investment management and consul ng services. RJCAC works
with each client to iden fy their investment goals and objec ves as well as risk tolerance and financial
situa on to create a por olio alloca on. RJCAC will then construct a por olio consis ng of mutual funds
and or exchange traded funds to achieve the client’s investment goals. The advisor may also use
individual stocks and bonds, United States government bonds, and real estate investment trusts to meet
the needs of its clients. Currently RJCAC constructs por olios using mutual funds and exchange traded
funds. Primarily, RJCAC u lizes the Dimensional Funds (DFA) for the construc on of client por olios. The
mutual funds do not contain 12b(1) fees which means that the brokerage firms are not being
compensated by these mutual funds; therefore, the brokerage firm charges a trade fee whenever these
funds are bought and sold.
RJCAC's investment strategy is primarily long term focused but the advisor may buy or sell or reallocate
posi ons that have been held less than one year to meet the objec ves of the client or due to market
condi ons. RJCAC will construct, implement, and monitor the por olio. Each client will have the
opportunity to place reasonable restric ons on the types of investments to be held in their respec ve
por olio subject to acceptance by RJCAC.
RJCAC evaluates and selects assets for inclusion in client por olios only a er applying their internal due
diligence process. RJCAC may recommend on occasion redistribu ng investment alloca ons to diversify
the por olio. RJCAC may recommend specific posi ons to increase asset class weigh ngs. The adviser
may recommend employing cash posi ons as a possible hedge against market movement which may
adversely affect the por olio. RJCAC may recommend selling posi ons for reasons that include but are
not limited to harves ng capital gains or losses risk exposure to specific class of securi es overvalua on
or overweigh ng of the posi ons in the por olio change in risk tolerance of the client genera ng cash
to
meet client needs or any risk deemed unacceptable for the client’s risk tolerance.
Prior to rendering investment advisory services, RJCAC will ascertain in conjunc on with the client the
client's financial situa on, risk tolerance, and investment objec ves.
RJCAC will provide investment advisory services, por olio management services, and family office
services but will not provide securi es custodial services. At no me will RJCAC accept or maintain
custody of a client's funds or securi es. All client assets will be managed within their designated
brokerage account or pension account pursuant to the client investment advisory agreement.
Client account management
Prior to engaging RJCAC to provide investment advisory services, each client is required to enter into an
investment advisory agreement with RJCAC that defines the terms, condi ons, authority, and
responsibili es of RJCAC and the client. These services may include:
Establishing an investment policy statement
RJCAC in conjunc on with the client may develop a statement that summarizes the client's
investment goals and objec ves along with the broad strategies to be employed to meet the
objec ves an investment policy statement generally includes specific informa on on the client stated
goals, me horizon for achieving the goals, investment strategies, client risk tolerance, and any
restric ons imposed by the client.
Asset allocation
RJCAC will develop a strategic asset alloca on that is targeted to meet the investment objec ves,
me horizon, financial situa on, and tolerance for risk for each client.
Portfolio construction
RJCAC will develop a por olio for the client that is intended to meet the stated goals and objec ves
of the client.
Investment management and supervision
RJCAC will provide investment management and ongoing oversight of the client por olios.
Re rement Rollovers - No obliga on/conflict of interest:
A client leaving an employer typically has four op ons and may engaged in a combina on of these
op ons: 1) leave the money in his former employers plan if permi ed, 2) roll over the assets to his slash
her new employers plan if one is available and roll overs are permi ed, 3) roll over to an individual
re rement account, or 4) cash out the account value which could depending upon the client's age result
in adverse tax consequences.
RJCAC may recommend an investor rollover plan assets to an IRA managed by RJCAC. As a result, RJCAC
may earn an asset-based fee; however, a recommenda on that a client or prospec ve client leave their
plan assets with their old employer will result in no compensa on. RJCAC has an economic incen ve to
encourage an investor to role play and assets into an IRA that RJCAC will manage.
There are various factors that RJCAC may consider before recommending a rollover including but not
limited to: 1) the investment op ons available in the plan versus the investment op ons available in an
IRA, 2) fees and expenses in the plan versus the fees and expenses in an IRA, 3) the services and
responsiveness of the planned investment professionals versus those of RJCAC, 4) required minimum
distribu ons and age considera ons, and 5) employer stock tax consequences if any. No client is under
any obliga on to roll over plan assets to an IRA managed by RJCAC.
When we provide investment advice to you regarding your re rement plan account or individual
re rement account, we are fiduciaries within the meaning of tle one of the employee re rement
income Security Act and or the Internal Revenue Code as applicable which are laws governing re rement
accounts. The way we make money creates some conflicts with your interests, so we operate under a
special rule that requires us to act in your best interest and not put our interest ahead of yours.
Under these special rules’ provisions, we must:
Meet a professional standard of care when making investment recommendations (give prudent
advice);
Never put our financial interest ahead of yours when making recommendations (give loyal
advice);
Avoid misleading statements about conflicts of interest fees and investments;
Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
Charge no more than is reasonable for our services; And
Give you basic information about conflicts of interest.
Wrap fee programs
RJCAC does not manage or place client assets into a wrap fee program. Investment management services
are provided directly by RJCAC.
Assets under management
As of December 31st, 2022, the most recent date for which such calcula ons are provided pursuant to
securi es regula ons RJCAC manages the following assets discre onary assets $100,490,000. Non-
discre onary assets are $0.00. Total assets under management $100,490,000.
Clients may request more current informa on at any me by contac ng RJCAC.