Q – Do you have a minimum account size, and if so, is there any flexibility?

A – Sort of, and yes.  In general, our minimum account size is $500,000.  Although most new relationships are larger than this, under the right circumstances we can establish new ongoing management relationships for amounts less than this. 

Q – We like your style. If we hire you, what can we expect regarding communication?

A – We pride ourselves on always providing clear and timely communication with our clients. Like any successful relationship, good and frequent dialogue and the open sharing of information is paramount. We are educational in our approach, and want our clients to understand what their portfolios are doing for them, as well as the reasons behind the suggestions we make.

Q – We are interested in talking. What should we bring to our first meeting?

A – Thank you for your interest! We find first meetings to be most productive if we simply talk candidly about what’s on your mind and why you think you might need a financial planner. If you have paperwork, such as statements, that you would like us to review, the better organized it is the more efficient we can be. The best advice we can give on this point is to call us and we can visit. We do not charge for a prospective client to “kick the tires” and would enjoy the opportunity to help explore whether we are a good fit for your needs.

Q – What are your fees?

A – For fee-based investment management, our annualized management fees are:

  • 1% on the first $1,000,000
  • .75% on the next $1,000,000
  • .50% on everything above $2 million

For clients who engage us for investment management, except under unusual circumstances, we provide financial planning and counseling as part of the management of their portfolio at no additional cost.

For those who do not wish to engage us for investment management, but have a one-time or periodic need for counsel, such as retirement projections, our fees are $225 per hour.

Q – We would like to do business with you but do not live in Salem. Are there are any geographic limitations?

A – From a practical perspective, no. We have clients scattered across numerous states, as well as internationally. One or more of the advisors in the office is licensed in the states of AZ, CA, HI, ID, MT, NM, OR, PA, TX, UT, WA, and WI. While we are unable to provide advice to people in states other than those in which we are licensed, the process of becoming licensed in another state is relatively easy. We would be happy to talk with you about your circumstances and determine whether our services are a good fit for your needs.

Q – What unique experience does a CTFA bring?

A – As a former Trust Officer, Chad served as both an investment advisor and administered portfolios of highly diverse and challenging assets for high net worth individuals and non-profit organizations. A Trust can own virtually anything – not just cash and securities – and the trust officer is responsible for taking care of any issue that may come along. We believe Chad’s experience makes us uniquely qualified to offer asset management and advisory services to those serving as Trustees of personal Trusts and other fiduciary capacities (irrevocable trusts, estates, and conservatorships).

The Certified Trust and Financial Advisor (CTFA) designation is awarded by the American Bankers Association / Institute of Certified Bankers. To receive the CTFA designation, a candidate must demonstrate proficiency in the fields of Trust & Estate Administration, Financial Planning, Tax Law Planning, Investment Management, and Ethics.

Q – In addition to assisting with advising & investments, can you serve as a Trustee?

A – No, we cannot. However, we are appropriate as an advisor or asset manager to individuals serving as Trustees, Conservators, or Personal Representatives of an estate, and work closely on a regular basis with the CPAs and attorneys of the Trustees. We recognize that serving as a Trustee can be a consuming, complex, and at times very challenging responsibility. We find that in many instances friends and family members accept this role without fully understanding how difficult it may be or how much it may complicate their own lives. So although we can’t do it for you, we are definitely here to help.

Q – I’ve heard of “Fee Only” advisors. Are you a “Fee Only” advisor?

A – The vast majority of our business is fee based investment management and financial planning. For over 25 years, we have emphasized this fee based model, but we continue to work with clients who started with us before we changed our compensation model. We genuinely care about these long term clients and have, regardless of size or potential profitability, chosen to maintain these relationships. Put another way, we don’t think dropping those long term relationships for the sole purpose of advertising ourselves as “fee-only” is the right thing to do. By continuing these relationships, we do not meet the definition of “fee only.” However, the vast majority of our revenue is derived from advisory fees.

Q – What is KMS Financial Services, Inc.?

A – While we consider ourselves to be an independent firm, we have chosen to conduct our business through KMS Financial Services, Inc., a wholly owned subsidiary of Ladenburg Thalmann Financial Services, Inc., a member of the New York Stock Exchange since 1879. We rely on KMS for compliance and operational support, which allows us more time to focus on our clients. KMS does not offer proprietary products nor have sales quotas. This gives us the flexibility to select, from a wide variety, the financial solutions we believe will best serve our clients.

Q – Do you take custody of client funds?

A – No. For the vast majority of our client’s funds, we have chosen to use Charles Schwab & Co., Inc.’s Institutional platform. While we maintain internal records of accounts and provide performance reporting quarterly, as well as on the spot for client meetings, clients receive monthly statements from Schwab.