Questions & Answers

Steve and Ada at Desk - Q&A


What is your investment philosophy?

I believe that good long-term investment results are determined mainly by the management of risk rather than by striving for outsized returns. My personal and professional philosophy is conservative. My primary objective in all accounts is to achieve reasonable, yet consistent returns. I am not interested in being an investment advisor hero but rather a care provider for my clients’ wealth. For my clients and those expressing interest in my services, I write and distribute a quarterly newsletter on current economic and financial market developments. To make sure that I have a complete picture of your situation, I can also work with your attorney, your accountant, or other professional advisor. Based on the information I gather, I will tailor a financial strategy that makes sense for you. Naturally, I will explain my recommendations and answer all your questions. Only then and with your approval will I take any action.

Will you be available to me after you start managing my portfolio?

Yes. You can always reach me by phone, fax, mail, e-mail, or personal appointment. I or my staff are always available to answer questions about any aspects of your account.

How do I keep track of what you do for me?

All clients are provided a quarterly portfolio evaluation. In addition, all our clients receive a comprehensive monthly brokerage statement. The quarterly evaluation lists all securities, original purchase date and cost of the security, and current market value. It provides a percentage distribution for all asset classes (asset allocation). Most important, the report shows time weighted rates of return for the account, so that the investor knows exactly how the account is performing. We maintain a complete record of all transactions and of realized capital gains and losses for tax planning purposes. This information is available at any time upon request and is provided to your accountant at tax time. This eliminates the need for tedious bookkeeping of all transactions.

What kind of portfolios do you currently manage?

Our advisory account minimum is $100,000. Portfolio design varies according to the needs and circumstances of the clients. Portfolios differ, ranging from those containing a majority of assets in stocks to those which have primarily fixed income assets and are designed to generate maximum income. Each account is individually tailored to the personal circumstances of the client, including risk preferences, age, and tax situation.

Can I afford the kind of personalized care you offer?

Our charges are surprisingly affordable and in most cases substantially lower than the cost of doing business with a large brokerage firm. Our annual fee for investment advisory accounts never exceeds 1% of assets under management. At the beginning of each quarter, we bill you according to portfolio value. For example, if you place $200,000 of your assets under my management, we will bill you $500 (1/4% or .0025) for the first quarter.

Why should I use you as an investment advisor?

Besides my experience, there are two salient points in my favor for you to consider: 1. I only have you to answer to. I’m independent and completely free from any pressures to sell one product over another. One of the main reasons I decided to open my own financial advisory firm was to free myself of the conflicts of interest that can occur when working under the pressure of brokerage firm incentives and recommendations. 2. My compensation is fee-based. My income increases when your assets grow.

I have investments in several places. Will I have any difficulty moving everything to your firm?

As your investment advisor, we make all the arrangements, handle the paperwork, and follow through until all transfers are completed.