Your money is held safely and independently of us.
Factor never takes custody of your assets. Your accounts are held at Altruist, an independent, regulated custodian. We can manage your investments, but we can never touch your money.
The adviser and the custodian are two different things.
We recommend and manage. The custodian holds your money and settles the trades. Keeping those two roles separate is one of the most important protections you have.
What Factor does
Designs your plan, manages your investments, and reports to you. We place trades and bill our fee. Nothing more.
What Altruist does
Holds your assets in accounts in your name, executes trades, sends your statements, and gives you your own secure login.
Who is Altruist?
A modern, US-based custodian built for independent advisory firms. It plays the same role Schwab or Fidelity does, with a cleaner experience. You get your own secure login, and your statements come directly from Altruist, not from us.
How your assets are protected.
| Legacy custodian (e.g. Schwab) | Altruist | |
|---|---|---|
| SIPC protection | $500,000 (incl. $250,000 cash) | $500,000 (incl. $250,000 cash) |
| Excess-of-SIPC coverage | Varies by firm | Additional $40M per account via Lloyd's of London ($2M cash sublimit) |
| FDIC cash-sweep insurance | Program-dependent | Cash swept to FDIC-insured partner banks up to applicable limits |
| Regulatory oversight | SEC / FINRA member | SEC / FINRA member |
| Direct client login & statements | Yes | Yes |
Excess-SIPC coverage is subject to a $150M aggregate limit across all Altruist accounts. SIPC protects securities if a brokerage fails. It does not protect against market losses. Cash-sweep FDIC coverage applies to bank-held cash. Insurance and annuity products are held with the issuing carrier, not at Altruist.
Switching is simpler than you’d think.
If your accounts are at Schwab, Fidelity, or Vanguard, moving them is a standard electronic transfer, usually just a few signatures, and we handle the paperwork. Your investments transfer in kind, so you don’t have to sell everything or go to cash.
Questions about how your money is held.
Can Factor withdraw my money?
No. We can place trades and bill our agreed advisory fee, but we can never move your money out. Withdrawals go to accounts in your name, initiated by you.
What happens if something happens to Factor?
Your assets stay at Altruist, in your name. A custodian holding your assets separately from your adviser is exactly what protects you if anything happens to us.
I've never heard of Altruist. Is it safe?
Altruist is a regulated US custodian used by thousands of independent advisory firms. It's a newer name than Schwab or Fidelity, with the same core protections.
Where are annuities held?
Annuities are contracts with the issuing insurance company and are held there, not at Altruist. Their guarantees are backed by that insurer's claims-paying ability.
Let’s have a quick chat about your retirement plan.
A relaxed, no-pressure conversation to see where you stand and whether working together makes sense.
