Frequently Asked Questions

How can I do my part to maintain and improve the integrity, resilience, and stability of our UK and US financial markets?

Technically, this task is not the responsibility of individuals such as citizens and market participants. It has been assigned to a handful of our regulatory agencies. The leadership and staff of those agencies have dutifully and skilfully carried out these objectives. Our FCA has worked tirelessly to protect us as household investors.

Likewise, our UK model of proportionate regulation is firmly grounded in sound and time-tested macroprudential principles. It has been carefully underpinned by world-class analysis. It is also guided by distinguished thought leaders within the Bank for International Settlements (BIS) and the Fidelity National Information Services (FIS).

However, as citizens, we continue to have a voice in such matters. We hold dear to our privilege of participating in a democracy. Our freedom comes with responsibilities.

As citizens of our UK and the US, we serve the important function of supporting checks and balances in our nation-states and our economies. We ensure that no one person or department has absolute control over our financial decisions. We are vigilant and mindful of our role as patriots and market participants. We agree that it is both our right and our responsibility to understand how our financial markets function, collaborate to maintain and improve them, and provide ongoing feedback to regulators.

Now, more than ever, we must do our part to maintain and improve the integrity, resilience, and stability of our UK and US financial markets. We are the light upon the hill.

First, we have defined the parameters of our shared financial ecosystem. Second, we have drawn from existing bodies of knowledge on the matter. Third, we formulated our problem statements and defined a range of potential solutions. Fourth, we have freely shared our knowledge with third parties who operate independent, unbiased, and trustworthy YouTube channels. Fifth, and last of all, we have made recommendations to regulators through mechanisms of public comment on proposed regulations.

Proper research is essential. However, creating and utilising appropriate theoretical frameworks is simply a means to and end. That end is successfully identifying and communicating actionable information to regulators. That information contains proposed solutions. They are based solely on our original research, writing, and analysis.

The value proposition of independent research lies in its detachment from existing dogma as well as our close proximity, as citizens and market participants, to the actual daily functioning of our UK and US markets. Our proximity has also put us in a unique position to quickly identify and address potential issues in need of improvement.

We have been conducting academic research, writing, and analysis on twelve significant topics. Naturally, we will discover further areas of improvement while we assess the impact of the CCyB, LCR, and NSFR macroprudential elements. However, these twelve themes exemplified sensible starting points. They are the twelve key drivers.

These themes are key drivers of integrity, resilience, and stability in our joint financial ecosystem. Drivers range from vital to highly relevant, but they may not necessarily reflect the current stated missions, goals, principles, initiatives, and/or strategic objectives of one or more UK and/or US regulatory oversight and enforcement authorities.

The following two paragraphs represent our UK and US collaborative financial markets integrity, resilience, and stability academic research, writing, and analysis to do list:

(1) read current and proposed rules of the FCA, BoE, SEC, and Federal Reserve, (2) comprehend robust checks and balances such as internal controls, (3) obtain timely updates from the ESMA and BIS, CFR, and CGFS member organisations, (4) review white papers on maintaining the OCC loss allocation waterfall, (5) read case studies and examine data of prior stressed market episodes, (6) understand market participants by gaining proficiency in trading, investment analysis, and financial planning.

(7) stay current with Global Association of Central Counterparties reports, (8) study how enterprises obtain and manage credit, debt, and equity financing, (9) advocate education to maintain a fair playing field for all market participants, (10) increase competence in financial economics, derivatives, and cryptocurrencies, (11) learn how to balance the interests of the Options Clearing Corporation and clearing members, and (12) discern the procyclical impacts of margin requirements as market stressors.

The above twelve items are not listed in a preferential order. For your benefit, they are stated in simple terms. We adhere to the following process of collaborative research:

First, you review the documents we send in your onboarding email. After any queries, you sign your non-disclosure agreement, ethics pledge, and statement of fidelity.

Second, we train you in techniques of quickly identifying problems, locating data, and finding patterns. We utilise systemic epistemology to connect seemingly unrelated ideas in novel ways and find solutions. We show you methods to interpret densely written materials with complex numerical data, form conclusions, and execute decisively.

Once you apply the methodology, it becomes second nature. Mastering these skills not only allows us to complete this project, but also helps you to level up your abilities.

Third, you are charged with writing reports on your findings and those of team members. Plain English and non-academic writing are acceptable. A conversational style is fine. We are highly skilled in translating your text messages into regulatory speak. We also value participant feedback, such as these gems: tl;dr, smh, cwot, kmn, and wth.

Again, you mustn’t worry about formatting issues. We are the ones responsible for editing, inserting in-text citations or footnotes, and creating a bibliography. Do not fret. Remember, your primary role is simply a combination of locating and summarising relevant documents and performing data analytics. It is a very straightforward process.

Fourth, and last of all, once you have become proficient in your duties, you are assigned to mentor and supervise others. That maximises team efficiency. Those who are deemed to be relatively remarkable and satisfactorily loyal are subsidised for the first £277 of agile or scrum training. Departing from us within one quarter voids that offer.

Closer & Call to Action:

Do your part to: (1) keep the global economy healthy, (2) understand how financial markets function, (3) promote the competitive edge of our two economies, and (4) help regulators learn about cryptocurrency as a technological innovation. We will not accept regulatory leakage and arbitrage. We refuse to tolerate cross-border spillovers.

Thus, we have increased our co-ordinated efforts. Together we successfully maintain and improve the integrity, resilience, and stability of our UK and US financial markets.

Redditors, community members on reddit, have also been doing their part to maintain and improve our UK and US markets. For instance, members of the subreddit r/Superstonk have been quite displeased that the Options Clearing Corporation has attempted to waive margin requirements. Like us, they have been educating others.

Market reform is not quantum mechanics. Don’t sell yourself short. Many have been able to make a quantifiable positive impact, bettering our shared financial ecosystem.

Even if you were a few sandwiches short of a picnic, with proper direction, you could figure this out. If these Redditors can make a difference, so can you. Just imagine the quality of your insights—future generations will flourish. If you have children, please continue to teach them about financial markets and encourage their involvement here.

Since 2007, Adviser H. Wu, MTax, AFC® and many others have been doing their part to understand and promote the integrity, resilience, and stability our UK and US markets. Together we have been striving to fulfil our shared obligations as patriates and market participants. We strongly recommend that you join us in our endevour.

Notes:

One: Current participants: We appreciate your patience as we streamline this process. Due to the high volume of incoming emails, we currently require at least 48 hours of lead time to thoroughly read and respond to your queries. Similarly, it takes us 5-7 business days to fully review and comment on the progress of your research and writing.

Two: Students: Please list the not-for-profit MyMoneyPlan™ as your volunteer internship employer. You may use one of these job titles: Finance Researcher or Financial Policy Intern. We do not require that you have performed prior financial market, monetary policy, or banking research. Flexible schedules. Remote work. Ample direction. Ongoing mentorship. Guidance on your chosen financial stability key driver. You are not permitted to switch research themes. Choose your financial stability topic wisely.

Three: Contact: pc (at) mymoneyplan.org. The @ was removed to prevent email abuse. Emails which are unrelated to your participation in the program are hastily deleted.

Four: Materials: We only use primary and secondary sources for our research. That includes academic scholarly journals, white papers, and data. Here is more information:

<>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~<>

Inspiration: the cornerstone of our financial stability foundation. Sources: samples of insight for our financial markets research & analysis.

<>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~<>

(a) This timeless wisdom from Fernando Restoy is your guiding beacon.

(b) This ESMA report on the procyclivity of CCP Margin is your first stop-off.

(c) This BIS working paper illustrates the need for further co-ordination and reciprocity.

(d) This BIS dashboard is your CCyB control center: anticipate and react to changes swiftly.

(e) This BIS guidance is a classic reference: protect your banking sector from the credit cycle.

(f) This CGFS report helps you to communicate the net benefits of AP-driven monetary policies.

(g) This CCP12 primer on Initial Margin is one of the many white papers you must commit to memory.

(h) This BIS spreadsheet has links to member CCyB quarterly decisions: sustain your macroeconomic empathy.

(i) This Competition and Markets Authority directive is among the policy papers you are required to be in alignment with.

(j) This form is your line of communication with US market regulators: it is imperative to send courteous not agitated feedback.

(k) The US Federal Reserve Board admires the hard work of our BoE and FCA: properly thank them by commenting on proposed rules.

Do you recommend specific stocks, bonds, or mutual funds?

No. Your adviser will not choose or recommend individual stocks or other securities. Likewise, your adviser will not give an opinion on market timing. Adviser H. Wu, MTax, AFC® has worked alongside professional traders who have performed industry-recognised methods of buy-side equity research and fundamental and technical analysis.

Over the years, Adviser Wu has learned and experienced that—unless one is a successful professional trader, such as for a hedge fund—it is more important to focus on achieving long-term overall gains than following short-term market trends. As an aside, describing trading so simply is black and white thinking in a world of ombre hues.

Many successful professional traders and financial analysts spend their full-time waking hours monitoring financial markets and analysing economic data.

For example, professional hedge fund traders monitor changes in the value of each security in the fund portfolio. They observe the activity and performance of each security, applying metrics such as price to earnings ratio, volume indicators, price action, investor sentiment, and institutional accumulation.

A professional trader must also research the performance of dozens of similar stocks over decades of prior market cycles. That is done by reviewing previous fundamental and technical data for high-performing equities within a chosen sector. A job task domain that supports that function is referred to as buy-side equity research.

Interestingly, knowing which security to choose, based on fundamental and technical analysis, is actually the easy part of professional trading. The skill that often takes years to perfect, which many traders are unable to master, is successful market timing.

To make proper entries and exits, a trader must review prior buypoints and selloffs. Then the trader can project and forecast future chart action. With the support of algorithms, indicators, machine learning, and proprietary tools, professional traders have streamlined that process.

For example, in the past, traders had to plot their own data points to visualise and analyse channels between support and resistance. Likewise, they did not yet have indicators to guide them to buypoints and exits. Fortunately, in the 1980s, the Bollinger Band momentum indicator was created. Now traders look for a Bollinger Squeeze.

However, a professional hedge fund trader, who is skilled in all of the above, must also navigate and operate within the variable conditions of both bull and bear markets.

Additionally, as you may recall, it was relatively easy to make gains in a the market of the dotcom era. But in certain interest rate environments, in addition to many other factors, months and even years of gains can be wiped out in an instant. For example, Adviser Wu lived through the 2010 flash crash. Those with leverage suffered. The market conditions leading up to that event have been burned into Adviser Wu’s memory—along with survivor’s guilt for not experiencing losses while many others did.

That particular event served as a reminder to Adviser Wu to be wary of the techniques and strategies of even the most successful professional hedge fund traders. Such traders may thrive in both bull and bear markets. They may possess sufficient pessimism to become skilled in shorting. They might even excel in identifying arbitrage opportunities, utilising options and hedging, and applying appropriate amounts of leverage.

Yet there is no way, with certainty, that even professional hedge fund traders can accurately forecast and project the impact and timing of each financial market event and every upward and downward movement that constitutes future market cycles. Therefore, an active trading strategy, especially a hedge fund strategy focused on quick accumulations through growth stocks and the use of leverage, is not suitable for many retail investors.

Likewise, it is not an appropriate methodology for many professional investment managers, financial planners, and financial advisers. They would consider the risk of loss too high to justify possible gains. For example, hedge fund shares, which are offered through private placements, must typically be sold to accredited investors who have been deemed suitable to accept a higher level of risk due to a pre-existing cushion of net worth total assets or a high enough amount of annual earnings.

As you can see, active investment strategies can be extremely time-consuming and their results are still relatively unpredictable. Also, active trading of your account involves buying and selling. Of course, when you sell something, it is another opportunity for the US government to levy income tax.

Hopefully, you have already held the asset you are selling for more than one year, allowing you to take advantage of lower long-term capital gains tax rates. But that might not be the case if your account is actively traded. However, both short-term and long-term capital gains taxes erode away the basis of your investments. To put it simply, your capital becomes less after you pay taxes.

Frequent trades may also subject you to Internal Revenue Code wash sale tax rules. In the case of a wash sale, even if you sell an asset at a loss, you will not be permitted to deduct it against gains. In other words, if you have sold an investment for a loss, you must wait for 30 days before or after the sale to replace it with the same or an identical security. Just remember that when you have a wash sale, the Internal Revenue Service (IRS) will not allow you to write off the investment loss.

Fortunately, you do not need to be a professional hedge fund trader in order to grow your investments. Depending on your circumstances, you may even decide to skip active management. There are many ways to both safeguard and increase your assets.

For example, there is a well-recognized investment philosophy within the investment management and financial planning industries. An investment philosophy is a set beliefs and principles that guide an investor’s decision-making process. The philosophy is known as evidence-based investing. It is grounded in the principles of modern portfolio theory (MPT). When you apply that theory to create a portfolio of assets, you get maximum return for your given level of risk.

Unlike the aforementioned methods of professional hedge fund traders, evidence-based investing relies on managing the type of factors that retail investors can control.

That includes making and maintaining a certain asset allocation through structural diversification. Passive buy and hold strategies, which require less trading, incur lower overall fees. In addition to being relatively cost effective, a buy and hold strategy promotes the accumulation of market gains over the long-term. That means it does not rely on the previously mentioned market-timing techniques—which are considered by many to be risky despite being used by successful professional hedge fund traders.

The consensus among fiduciaries in the financial services sector, in alignment with financial industry regulations, is that hedge fund methods are neither suitable nor appropriate for retail investors. In other words, such a level of active management, with its inherent risks, may not be in the best interests of many clients. As fiduciaries, financial planners and investment managers often adhere to an investment philosophy that minimises potential risk and encourages steady gains over the long-term.

Therefore, many financial advisers recommend a passive investment strategy. For example, an adviser may suggest that a client buy and hold a combination of exchange traded funds (ETFs), mutual funds, and fixed-income securities. However, the choice of investments that an adviser recommends must also be based on an individual client’s particular level of risk capacity and risk tolerance, as well as the time horizon of both short-term and long-term investment goals.

That being the case, as part of the investment planning process, your adviser will construct an asset allocation based on your specific investment needs and the time horizon of your goals. Additionally, your adviser can introduce you to tools and techniques that may make it easier for you to manage your investments. If you are interested, your adviser can also educate you on the fundamental principles of investing and common pitfalls to avoid.

Are there any factors that may contribute to the instability of our UK and US financial markets?

Adviser H. Wu, MTax, AFC® has written a personal opinion in simple terms. Personal opinions do not necessarily reflect Madrone Hill Capital opinions. They are neither investment advice nor investment recommendations. Refer to our website disclosures. To view the article, scroll to question #25 here: FAQs-TheMoneySpot™.

What do you think about cryptocurrency such as Bitcoin?

Adviser H. Wu, MTax, AFC® has written a personal opinion in simple terms. Personal opinions do not necessarily reflect Madrone Hill Capital opinions. They are neither investment advice nor investment recommendations. Refer to our website disclosures. To view the article, scroll to question #26 here: FAQs-TheMoneySpot™.

Do you plan to write about crypto market action?

Adviser H. Wu, MTax, AFC® has written a personal opinion in simple terms. Personal opinions do not necessarily reflect Madrone Hill Capital opinions. They are neither investment advice nor investment recommendations. Refer to our website disclosures. To view the article, scroll to question #28 here: FAQs-TheMoneySpot™.

How do Tesla, SpaceX, and X generate long-term economic growth, promoting global financial stability?

Adviser H. Wu, MTax, AFC® has written a personal opinion in simple terms. Personal opinions do not necessarily reflect Madrone Hill Capital opinions. They are neither investment advice nor investment recommendations. Refer to our website disclosures. To view the article, scroll to question #29 here: FAQs-TheMoneySpot™.

Do you offer investment management services?

No. Madrone Hill Capital, LLC does not manage money or investment portfolios. However, your adviser will provide an asset allocation as part of an investment plan. Adviser H. Wu, MTax, AFC® has been trained in investment management through Yale School of Management.

Your adviser will educate and empower you to manage your investments. Also, if needed, your adviser will guide you in making the trades required by your asset allocation. However, our advisers are not authorised to access any of your accounts or to make trades for you.

We acknowledge that you may prefer, due to necessity or convenience, to work with a financial planning firm which also offers the service of investment management. Some advisers who provide both financial planning and investment management as integrated services refer to themselves as “wealth” advisors or “wealth” managers. So if you want to work with a firm that offers both financial planning and investment management, look for that word.

A registered investment adviser firm, such a financial planning practice, may provide you with investment management services in-house or by working with a third party investment management service provider. For example, a firm may choose to outsource investment management with a Turnkey Asset Management Platform (TAMP).

Since TAMPs act as professional investment managers, they may have a board of directors or an “Investment Committee” of professionals who hold the Certified Financial Analyst (CFA) designation, have earned advanced degrees in finance, and/or have accrued substantial investment consulting industry experience over many years.

Working with a TAMP may help a firm’s advisers free up time by delegating a chosen level of investment management responsibilities. Advisers can then use that time to focus on growing their relationships with you and other clients. For example, an adviser may have more time to spend identifying your financial planning goals, formulating recommendations, and better meeting your overall needs.

On the other hand, we recognise that you may prefer to manage your own investments. However, you may feel that you could benefit from the professional guidance of an adviser from time to time. Investment planning ties into many other areas of a comprehensive financial plan, such as retirement planning projections.

Thus, it is prudent to have a financial adviser review your current investment asset allocations prior to making any financial planning recommendations concerning your comprehensive financial plan.

Although you are responsible for monitoring your investment brokerage and qualified retirement accounts, your adviser can help by periodically reviewing those accounts. For instance, your adviser can guide you through tax loss harvesting, a tool for reducing taxes while being mindful of Internal Revenue Service (IRS) wash sale rules.

Since selling an asset may disrupt the balance of your portfolio, it is necessary to replace the sold asset with a similar asset. This maintains your target asset mix, keeping the expected levels of risk and return what you originally intended when you constructed the portfolio.

As part of the initial review of an existing portfolio, your adviser will assist you in identifying a target asset allocation appropriate for your risk tolerance and the time horizon of your investment goals. Then, during a quarterly portfolio review, your adviser can help you to maintain that allocation. In other words, your adviser can instruct you, step-by-step, on how to rebalance your investment allocations.

Rebalancing is necessary to make sure that the percentage of each asset class, such as stocks (equities) and bonds (debt instruments), matches the proportion which was originally intended. Over time, gains and losses among your securities may cause changes in the weighting of your investment portfolio. To correct an imbalance, it may be necessary to sell some assets and buy others.

Putting your portfolio into alignment not only helps to maintain your target asset allocation, but also your overall diversification. Just remember that maintaining your target asset allocation aligns your investments with your level of risk and the length of time you plan to hold the investments.

Do financial advisers have to pass licence exams?

Yes. In the state of California, and many other states, financial advisers must pass one or more licence exams prior to providing investment advice and/or financial planning services in return for payment. A fee-only adviser must pass the Financial Industry Regulatory Authority (FINRA) Series 65 exam and affiliate with a Registered Investment Adviser (RIA) firm. However, there are exemptions for advisers who hold credentials including Chartered Financial Consultant® and CERTIFIED FINANCIAL PLANNER™.

An adviser has to affiliate with an investment adviser firm that is registered with one or more states or with the US Securities and Exchange Commission (SEC). Then, an adviser is referred to as an Investment Adviser Representative (IAR). Madrone Hill Capital, LLC is a registered investment adviser firm in California. Firm advisers have passed licence exams. As a side note, US regulatory bodies use the proper spelling “adviser,” not “advisor,” so we use that spelling in our communications with you.

How do I choose a financial consultant?

When you are looking for an adviser to collaborate with, you have several financial consulting service models and fee structures to choose from. For example, a fee-only adviser may provide planning services to you hourly, as a retainer, as a percentage of your assets under management (AUM), or as a flat fee.

Likewise, you have several choices when it comes to investment management. You may choose to work with a firm that offers both financial planning and investment management. However, you may prefer to manage your own investments.

Regardless of the financial consulting service model of the firm you choose to work with, it is prudent to work with a fiduciary who puts your financial best interests ahead of their own. For example, a fee-only financial planner is a fiduciary who only charges for financial advice. Such an adviser does not make commissions by selling securities, insurance, or other financial products. Thus, working with a fiduciary adviser may also help to manage potential conflicts of interest.

Furthermore, your adviser should be bound by an ethical commitment or pledge. For example, Certified Financial Planner Board of Standards has carefully crafted a comprehensive code. That Code of Ethics and Standards of Conduct requires CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals to “uphold the principles of integrity, objectivity, competence, fairness and confidentiality.”

Similarly, a Chartered Financial Consultant (ChFC®) agrees to “make every conscientious effort to ascertain and understand” their clients’ needs, providing the same high level of service that they would apply to their own finances. An adviser who holds either the ChFC® or CFP® mark must also complete annual continuing education units. However, the CFP® mark also requires the completion of: (1) a comprehensive six hour exam, and (2) either 6,000 standard or 4,000 apprenticeship experience hours.

Whether or not the adviser you choose to work with has an industry designation, they should have education and experience in the complexities of financial planning.

Your fiduciary adviser should have expertise in all of the major areas of financial planning: cash flow, education, estate, insurance, investments, retirement, and taxation. Since each one of these areas impacts the others, it is crucial for your adviser to have a thorough understanding of each of these subjects. That also requires staying up to date on industry rules and regulations, including tax and insurance laws.

In addition to evaluating your specific financial circumstances, values, attitudes, and risk tolerance, your fiduciary adviser must also have the ability to thoroughly review and analyse quantitative information. That includes your income, expenses, assets, liabilities, investment time horizon, estimated rate of return, and inflation assumptions. Your adviser must know how to integrate these subjective and objective sets of facts into recommendations that form a holistic, comprehensive financial plan.

Finally, your fiduciary adviser should be someone you feel comfortable working with on a professional and personal level. They should demonstrate that they are skilled in listening and building rapport with you. You should feel at ease with your adviser and open to sharing the sensitive details of your financial life with them.

It may benefit you if your adviser also happens to be empathetic, kind, and respectful. Above all, they should have a genuine interest in learning about what is important to you and contributing to your short-term and long-term financial success.

Are your advisers agents of a broker-dealer or an insurance company?

No. Madrone Hill Capital, LLC and its advisers are not affiliated with any financial or insurance company. The firm does not sell any financial products. That means it does not sell or refer business to companies that sell mutual funds, annuities, life insurance, etc. Your adviser will only recommend insurance coverage as part of your risk management strategy. Firm advisers can confidently assess how insurance can benefit clients. However, they do not work for any company or receive commissions.

What does fee-only financial advice mean?

Madrone Hill Capital, LLC advisers charge flat fees for financial advice. Fee-only financial advice means that your adviser is not paid based on commissions or performance fees. Such pay structures are associated with broker-dealers and insurance companies. They employ advisers as agents who sell their financial products. In contrast, fee-only advisers are fiduciaries who put your financial needs first. That also limits potential conflicts of interest.

What is an MTax designation?

MTax means masters in taxation. If the degree is a Master of Science in Taxation, it can also be abbreviated as MST. The Master in Taxation degree is one the highest credentials a tax planner can earn. MTax coursework is nearly identical to what an attorney pursuing an L.L.M. in Taxation or an Internal Revenue Service (IRS) Enrolled Agent studies.

In other words, an MTax degree holder is a subject matter expert in tax planning. That includes analysing and applying the most current Internal Revenue Code and other sources of US tax law. It also involves making calculations to project the tax consequences of transactions.

Adviser H. Wu, MTax, AFC® holds this credential from Golden Gate University (GGU). GGU is a leader in tax law and taxation education, administering the oldest and largest taxation degree programme in the United States. In GGU’s Braden School of Taxation, many faculty members are licenced as both tax attorneys and CPAs.

Additionally, an MTax degree, combined with economics coursework, meets Certified Public Accountant (CPA) education qualifications. Adviser H. Wu, MTax, AFC® has completed all 150 college credits required for CPAs by the California Board of Accountancy. Although Wu is not a CPA, Wu has the high level of tax specialisation required for advanced tax planning.

What is an AFC® credential?

The Accredited Financial Counsellor (AFC®) credential is offered by the Association for Financial Counselling and Planning Education (AFCPE®). To earn the certification, candidates must meet ethical, educational, and experience requirements, including a minimum of 1,000 hours of relevant experience in financial counselling. Adviser H. Wu, MTax, AFC® holds this credential.

Do you provide tax advice?

Yes. The firm can offer deep insight into your tax situation. Adviser H. Wu, MTax, AFC® is not a licenced Certified Public Accountant (CPA), but Wu has a masters in taxation. As mentioned earlier, MTax coursework is nearly identical to what an attorney pursuing an L.L.M. in Taxation or an Internal Revenue Service (IRS) Enrolled Agent studies.

During the financial planning process, your adviser will evaluate your tax rate, liability, and related considerations. However, your financial adviser is not permitted to give you legal advice or represent you before the IRS. For more information on this topic, refer to the question “What is an MTax designation?”

Do you offer tax preparation services?

No. Madrone Hill Capital, LLC does not provide tax preparation services. However, Adviser H. Wu, MTax, AFC® has stayed current with US tax laws by completing yearly continuing education as a California Tax Education Council (CTEC) Registered Tax Preparer since 2012.

Does the firm employ attorneys?

No. Our advising teams include consulting US attorneys. However, Madrone Hill Capital, LLC does not have attorneys on staff. Only an attorney is permitted to draft legal documents. For example, a financial adviser makes a tax efficient estate plan and an attorney writes a will or trust. No firm employees are licenced to provide legal advice.

How do I become a client of the firm?

Madrone Hill Capital accepts clients through a referral process. We understand that each client—a unique individual—has specific financial circumstances, needs, goals, and preferences. That is why we have taken steps to ensure that we are a good fit for our clients. We want every client to benefit from our service model and expertise.

We do not pay third parties to refer clients to us. Similarly, we do not accept payment when we refer clients to third parties.

If you have been referred to us, we appreciate your interest and look forward to meeting you. Please use the contact information on your referral card to reach out by phone or email.