Frequently Asked Questions
Why use an investment advisor?
In today’s markets, investment success demands constant monitoring, careful planning and an extensive knowledge of how countless economic indicators and investment vehicles are performing. Most individual investors lack the computers, data and time for all this work. So, they wisely turn to a professional who has the expertise and specializes in investment advice.
What kinds of investments would be in my account?
A successful investment strategy creates a balanced and diversified portfolio. Depending on the type of account chosen, your account would be in no-load mutual funds, exchange traded fund, stocks and or bonds. The first step in structuring a portfolio is collectively determining a client’s investment objectives and risk tolerance obtained in the information you provide in the “Confidential Questionnaire”. Next, using this information, we invest your assets to specifically meet your investment goals.
If mutual finds are a good investment, why can't I buy them directly?
You can. But while mutual funds may once have been a simple choice, today things are more complex. There are now an estimated 8,000 equity, income and money market funds. Few individual investors possess the time, energy and expertise to study and evaluate all the possibilities and make the right choices. It’s a job for the professionals.
Is a managed investment account with fees right for me?
Practically all investments involve some degree of cost or expense. There are two primary cost structures available to investors today: Fees and Commissions. Depending upon your needs, goals, circumstances and many other factors, one structure may be more apt to serve your needs. As with any investment decision, investors should carefully consider their options when it comes to selecting an appropriate cost structure.
A fee-based approach can be said to align the interests of the investor, financial professional and portfolio manager. This is mostly due to the nature of how fees are charged. Fees are typically based on a fixed percentage per year. For example, our maximum annual fee for portfolio management is 2%. Because the percentage is fixed, the actual dollar amount will fluctuate based upon the underlying value of the account. This means that as the dollar value of the account increases, so does the dollar amount of the management fee. Likewise, as the value of the account decreases, so does the dollar amount of the fee. In this regard, the manager is rewarded for positive performance and penalized for negative returns.
What are your fees and when are they paid?
Management fees are generally billed to your account one quarter in advance. Quarterly fees are based upon the value of your account at the beginning of each quarter. The following fee schedule applies to our in-house accounts. The maximum management fee for any of our programs is 2%. Please see the information for each of the other management programs on their respective information page.
Market Value of Account Quarterly Fee Percentage
$50,000 and Below 0.500 percent
$50,001.00 to $100,000.00 0.437 percent
$100,001.00 to $500,000.00 0.375 percent
$500,001.00 to $1,000,000.00 0.313 percent
$1,000,001.00 to $2,000,000.00 0.250 percent
$2,000,001.00 to $5,000,000.00 0.188 percent
$5,000,001.00 and Over 0.125 percent
Do your fees depend on the activity in my account?
No. Management fees are based on the total value of your account (or accounts) at the start of each quarter. Our goal is to keep activity in each account to a minimum. We have no incentive to “churn” or rapidly buy and sell assets in clients’ accounts. If we have any incentive, it is performance- since our fee increases only if we increase the value of the client’s total assets under our management.