DO I NEED A PROFESSIONAL MONEY MANAGER?
People hire investment professionals to help them with the specialized task of managing their money, while they focus their time and effort on other matters. Managing investments requires objectivity, substantial knowledge, and plenty of time to monitor the markets and watch for opportunities. Hiring the right investment advisor can help you achieve your long-term goals.
WHAT TYPES OF CLIENTS DOES ACM WORK WITH?
The majority of our clients are individuals who have accumulated savings from various sources, such as retirement funds and inheritance. Many of these individuals have IRA accounts which were rolled over from a retirement savings plan such as a 401k. We also manage money for corporations and their pension plans, as well as funds for charitable institutions.
CAN I WORK WITH ACM EVEN IF I DON'T LIVE IN SOUTH FLORIDA?
Yes, we work with clients all over the United States. Our registration with the SEC allows us to function in any state (provided that we file notice filings upon reaching certain de minimus threshholds). While it may preclude frequent face-to-face contact, communication technology (telephone, email, webcasting) allows for constant contact and carefully synchronized portfolio management.
HOW IS AN INVESTMENT ADVISOR, SUCH AS ACM, DIFFERENT FROM A STOCKBROKER?
ACM is a "fee-only" registered investment advisor. As an asset management firm, we are concerned with the growth of your portfolio and the protection of your assets. We work directly for you, the client, and receive no compensation from any other source. A stockbroker is a sales person, who is generally compensated by commissions relating to trading activity by generating the sale/purchase of a security through their firm, or in the sale of investment "products" that outsource the management of your portfolio.
WHAT GOVERNMENT AGENCY REGULATES ACM?
ACM is an SEC-Registered Investment Advisor and as such must abide by all applicable rules under the Investment Advisors Act of 1940. The Securities and Exchange Commission conducts periodic reviews of our compliance with their rules. All filings made by ACM with the SEC are available upon request, and ACM's ADV Part 1 is available at the SEC's website.
HOW IS ACM COMPENSATED FOR ADVISORY WORK? HOW ARE YOUR FEES CALCULATED?
Clients are assessed a quarterly management fee based on the market value of their account at regular quarterly intervals. For example, an account valued at $750,000 on the review date with a 1% management fee, would be charged $1,875 (1/4 of 1%) for the quarter. The account will be charged the next quarter's fee based on the value of the account ninety days later. The management fee can be deducted directly from your account and, as a courtesy, you will receive a fee deduction notice in the mail. The fee deduction will appear on your custodial statement. Clients can also opt to pay ACM advisory fees directly, and will receive a bill with quarterly portfolio reviews. ACM's fee schedule can be found here.
WHO ACTUALLY HOLDS THE ASSETS IN MY ACCOUNTS? ARE THERE ANY SAFEGUARDS FOR MY ASSETS?
ACM manages and supervises your account but the assets will be held by an independent, third-party custodian selected by you. While we recommend Charles Schwab, ACM can and does work with a wide range of banks and brokers. The limited power of attorney extended to us as an investment advisor allows trading authorization and the ability to move money to you (and ONLY you), but at no time do we ever have possession or custody of your investments. Both banks and brokerage firms provide legal and insurance protection for the client assets in their custody.
ARE ACM's INVESTMENT ADVISORY FEES TAX-DEDUCTIBLE?
The IRS does allow a deduction for investment management fees but you should consult with your tax advisor to determine if it applies in your situation.
CAN I END MY RELATIONSHIP WITH ACM WITHOUT PENALTY?
Yes. If you have other pressing needs for the money in your account we will help you get the money out of the account as quickly as possible. There are no cancellation or redemption fees. We look forward to you re-opening your account when circumstances have changed. Fees for closed accounts are reimbursed on a pro-rata basis.
CAN ACM MANAGE MORE THAN ONE ACCOUNT FOR ME?
Yes, and it is quite common. Many of our clients have an individual account, a joint account with their spouse, and IRA's as well. We can also set up custodial accounts for children, college education funds, and trust accounts. On some of the smaller sized accounts, however, the investment choices are limited, but they can be worked into the overall investment plan. We do require a minimum aggregate account size of $300,000.
HOW OFTEN WILL I RECEIVE ACCOUNT REPORTS?
ACM will provide you with a quarterly investment review detailing all your portfolios. You will also receive monthly reports of assets and transactions from the custodian of your account. If applicable, ACM will provide tax information to you or your tax professional.
HOW DO I GET STARTED?
1. Set up a meeting with an ACM portfolio manager to determine suitability, portfolio goals, assess lifestyle needs and financial strenghts, and risk tolerance. You can schedule a meeting by going here.
2. Sign an investment advisory agreement.
3. Select a custodian for your assets. Again, we use Charles Schwab as a cost effective custodian, but you ultimately decide where to place your assets - we can work with almost any custodian.
4. Set up the custodian account. We will provide all the necessary forms.
5. Deposit your funds or transfer the account from your current custodian.
WILL YOU NOTIFY ME BEFORE MAKING TRADES IN MY ACCOUNT?
ACM offers a non-discretionary service that allows you to approve any transactions before they are placed. For discretionary accounts (almost all accounts) ACM will make the best effort to notify you if you want to have some input, but ultimately, due to market conditions, ACM is not required to notify you.
WHAT HAPPENS WHEN ACM BEGINS MANAGING MY ACCOUNT?
Except for taxable accounts with substantial embedded capital gains, we will fully convert your portfolio into securities we feel best fit your goals and risk tolerances. We put our best efforts into selecting and monitoring securities for our client portfolios and we may not have the same opinion of securities as your previous money manager.
HOW OFTEN WILL MY ACM PORTFOLIO MANAGER COMMUNICATE WITH ME?
The manner and frequency of our communications with you is based on your preferences and your personal relationship with your portfolio manager. For clients living nearby, face-to-face meetings can occur as needed. New clients often want more contact while long term clients are usually happy with less, the level of communication is dictated by your comfort level. ACM portfolio managers are available by telephone or email anytime during business hours. We encourage you to call or email with any questions or information requests.
CAN I VIEW MY PORTFOLIOS ONLINE?
Charles Schwab allows online access through SchwabAlliance. If you choose another custodian, online access will be available based on their capabilities. ACM does not provide online access to accounts.
WILL I RECEIVE PROXY STATEMENTS AND ANNUAL REPORTS FROM COMPANIES THAT I OWN STOCK IN?
You have a choice about whether to receive mailings from stocks which you own. In most cases our clients choose not to receive these materials. ACM is able to and does vote proxies on behalf of our clients.