Frequently Asked Questions

How does Wealth Management differ from Investment Management or Financial Planning?
While there is not a standard definition, Investment Management is more or less confined to picking the best stocks, bonds, exchange-traded funds, mutual funds and the like for clients.
Financial Planners typically assess all aspects of your financial life—including investments, insurance, taxes, retirement, and estate planning—and help you develop a strategy or financial plan for meeting your financial goals. Most financial planners also select investments, however, some may only be able to recommend a narrow range of choices.
Wealth Management is a relationship including financial planning and investment management that is integrating one’s life, family and legacy. This involves actively managing a client’s financial life and may require coordinating with attorneys and accountants to ensure investment are made in the right structure.
Do you have to be “wealthy” or have a certain assets size to use a wealth manager?
No. The decline in pension plans is requiring more people to finance their own retirement plan. People need to understand how the financial choices they are making today may affect their future lifestyle. This may involve real estate, mortgage loans, providing for college education, caring for aging parents and having a will.
What is the advantage of working with a boutique wealth management firm as opposed to a larger brokerage?
A boutique firm has a broad array of investment choices and is free from internal mandates or sales goals. This allows for more objective management services that are tailored to client goals and values.
Is a will necessary if I don’t have many assets?
Yes, if you have concerns of who may care for your children, who makes decisions (like health care) for you when you are incapacitated, how your assets or liabilities will be transferred or want to make sure everything is done according to your wishes.
How are you paid?
For investments, compensation is based upon a percentage of the assets under management. This aligns our interests with that of our clients by eliminating commission or transaction based compensation that may be an incentive to use products or services clients don’t need.
Fees for financial planning range from $1,000 to $3,500 depending on your situation and how extensive you want your plan to be. For specific issues or a pay-as-you-go approach, our fees are $165 per hour.
Where are my investments located and how are they protected?
Investments are held in your name through KMS Financial at Pershing, LLC (a subsidiary of the Bank of New York Mellon corporation). Accounts held through KMS at Pershing are protected up to the amount held in the account. The Securities Investor Protection Corporation (SIPC) provides $500,000 of coverage with the remaining provided by Pershing through a commercial insurer. Account protection applies when a SIPC member firm fails financially and cannot meet its obligations to securities customers. It does not protect against losses from the rise and fall in the market value of investments.