Where are my accounts held?

I normally custody client accounts with Charles Schwab’s Institutional program, and do not maintain physical custody of your assets.  Schwab offers an excellent combination of services for you and for me, including trade execution services, a wide selection of available investments, cash management services, and online access to your accounts.  I receive no compensation from Schwab, or any other provider, for using their services.

How do you charge for your services?

I am “fee-only,” and receive no commissions for transacting business on your behalf.  I charge investment advisory fees that are a percentage of the value of your assets under management.  The fee is charged in quarterly installments based on your account values at the end of each calendar quarter.  You receive a quarterly invoice showing how the fee is calculated.  My minimum expected account size is $250,000 and is flexible.

Account Value	Annual Percentage
$0 to $2,000,000	0.75%
Over $2,000,000	0.50%

Are there other costs of doing business with you?

In addition to my investment management fees, you pay the custodian’s customary commission or transaction charges.  In Schwab’s case, these charges are nominal, 0.10% to 0.20% of a typical stock transaction.  They offer a reduced rate when you utilize their online, paperless account services, which I recommend.  Other charges may apply to bond transactions, certain no-load fund transactions, and miscellaneous specialized services.

Are there limits to what you can do with my assets?

I do not maintain the authority to withdraw funds from your accounts for any purpose except payment of my investment management fees when authorized by you.  I normally work with discretion over your accounts.  This means that I have the authority to make investment transactions without your explicit authority.  I keep you informed about overall objectives and plans, so decisions I make on your behalf will never be a surprise.  Should you have a particular stock, industry, or investment theme you wish to incorporate into your portfolio or avoid, I make every attempt to do so.

What is your business continuity plan?

I take extraordinary measures to protect the security of your assets, your confidential personal information, and my business data.  I am 53 years old, in excellent health, and see maintaining the business indefinitely, or as long as desired by clients.  In the unlikely event of a personal tragedy, your relationship with Schwab provides you with access to your account assets at all times, and a transition to another source of help for managing your assets.

How do you work with existing securities portfolios?

I am happy to work with any existing investments you own upon becoming my client.  I will make an initial recommendation to hold or sell an existing asset, and take responsibility from that point forward to monitor and report on the performance of these pre-existing investments.  Sell recommendations will take into consideration any capital gains and or transaction costs.

What about the other financial people in my life?

To ensure that all the pieces of your financial life are working in concert, I work with your tax professional/accountant, estate-planning attorney, insurance agent, financial planner or others with specialized knowledge of your financial affairs when you direct me to do so.  I will gladly supply a referral to such a professional if desired.