Our annual investment management fee is 0.25% for the first $5 million of managed investment assets and no additonal management fees are charged on any assets greater than $5 million. We have no minimum client relationship size, but all client relationships are subject to a $500 minimum quarterly fee. For additional information about our fees.
We don’t think of our fee as low, we think of it as fair. The real question is not why our fee is so low, but rather why are the majority of other investment advisers charging three to four times our fee? A typical investment adviser charges its clients fees of approximately 1% or more annually. With fees that high, investment advisers need to achieve higher returns to make up for their high fees to simply match stock and bond market returns. Those potential higher returns often come with higher risk.
The process to start managing your investments can vary, depending on your availability to talk with us to develop your investment plan. For a motivated investor, the process may take as little as a few business days. Let us prepare an investment proposal for you at no cost.
The management of your portfolio follows an investment plan that is decided on and approved by you in advance and is outlined in your Investment Policy Statement. As such, you will not be contacted by us seeking permission to perform routine portfolio management functions such as monitoring, rebalancing and tax loss harvesting. If at any time you have questions about your portfolio, simply contact us by phone or email. Just because you hired Firstmetric to handle the day-to-day management of your portfolio does not mean you are not involved. We ask that you always keep us informed of any changes in your financial situation, tax status, cash flow needs and overall investment objectives.
Just because you hired Firstmetric to handle the day-to-day management of your portfolio does not mean you are not involved or we don't communicate with you. We ask that you always keep us informed of any changes in your financial situation, tax status, cash flow needs and overall investment objectives. In addition, we are always available for periodic reviews on an "as needed" and/or "as-requested" basis depending upon the financial issue.
On a continuous basis we compare your current portfolio asset allocation strategy to its fixed target allocation. Portfolios are reviewed for possible rebalancing when your asset allocation has shifted up or down from its target allocation based on market activity. Firtsmetric generally uses a predetermined percentage formula to determine if and when a portfolio should be rebalanced. A decision to rebalance will also depend on the dollar amount to be reallocated, any known expected future contributions or withdrawals from the portfolio, and any potential tax consequences in taxable accounts.
No, either party may terminate the Investment Management Agreement at any time and for any reason. There are no termination charges. The only remaining charges will be a final prorated invoice that will be generated based on the actual number of days during the current quarter that your accounts were under management.
All client accounts are held with Schwab Advisor Services, a division of Charles Schwab & Co., Inc. Schwab Advisor Services is an independent qualified custodian, which means they hold your cash and securities and facilitate trading activities. Firstmetric has selected Schwab Advisor Services as its sole custodian because of their commitment to client service, low trading costs, and operational efficiency. Firstmetric never has access to your cash and securities except to debit our quarterly investment management fee that you authorize.
No. There is no reason for you to contact Schwab Advisor Services. We will assist you in opening your Schwab Advisor Services accounts and transferring your existing accounts into your new accounts by sending you all the necessary new account and transfer paperwork in either electronic signature or hardcopy format. You will be notified by both Schwab Advisor Services and Firstmetric as new accounts are opened and cash and securities transfer into your new accounts.
Yes. You will always have website and telephone access to your accounts 24 hours per day, 7 days per week through Schwab Advisor Services at Schwab Alliance. In addition to accessing your accounts through Schwab Alliance you will also have access to your accounts using the Firstmetric Client Portal. Our online portal will provide you with updated account and performance reporting information.
If you sign up to receive trade confirmations electronically, Schwab Advisor Services will notify you by email when Firstmetric places trades in your accounts on your behalf. If you have not opted to receive electronic trade confirmations, then Schwab Advisor Services will send you hardcopy trade confirmation by regular U.S. Mail. In addition, you always have online access 24/7 to view all transactions in your accounts through Schwab Alliance or the Firstmetric Client Portal.
There are many asset class and index fund options available. At Firstmetric, we want the purest exposure possible with any given asset class or index fund, not to mention the lowest cost. Therefore, we generally limit our asset class and index fund selections to those offered by Vanguard, Dimensional Fund Advisors (DFA Funds), and iShares. From time-to-time we may consider investments from other investment companies.
Taxes are an investing expense, just like any other investment related expense. We use several techniques to help control taxable events. First, if you are in a high tax bracket we generally use tax-free municipal bond funds rather than taxable bond funds in your taxable accounts. Second, we try to limit the placement of any real estate investment trust (REIT) funds in a taxable account because REIT funds distribute a large amount ordinary income. Third, we place less tax efficient investments in your qualified tax-deferred retirement accounts. Finally, we harvest tax losses in your non-qualified taxable accounts by swapping one investment at a loss for another when tax losses are available for harvesting. Those losses can then be used to offset future realized capital gains to help lower your taxes.