FAQ

Mark began his career in the investment management business in 1999.

Since Mark has been in business since 1999, you can rest assured that you will always receive fast and reliable service. There have been a lot of financial advisors come and go here in Salt Lake City. Mark is still here. He is still here for one reason – he puts his clients first.

For the most part yes, Mark tries to remain the point of contact and correspondence for all his clients before and after new accounts are established. He believes that is the best customer service. However he does have others who are helping him in the back office (behind the scenes) you should be introduced to should you decide to give Mark the opportunity to be of help with your investment management. Here are some of the people you may be dealing with.

First Nicole, Mark’s executive assistant. She handles all the back office service-related items, that any letters Mark needs sent are, in fact, sent, and that any reports that are required are sent on a timely basis.

Stephanie, Diana, and DJ, are part of Marks business processing team. They help with any questions, transfers, or problems that may be encounter.

Mark believes very strongly that this industry requires a team approach. The information to absorb is massive. Certainly you deserve a quick response to your questions and problems. Only through a dedicated staff can the information be absorbed, appropriate recommendations made, and prompt and efficient service be given to you, the client.

So, should we ever do business together, you can rest assured that we have assembled a dedicated staff of professionals to better serve you.

We are “fee-only,” that means we are not fee-based or commission-based.

A fee-only Registered Investment Advisor (RIA) means the RIA has a fiduciary obligation to their clients. That means they have to put their clients interests first above their own. This is important because someone who is fee-based or commission-based does not have that same fiduciary obligation. This also means the RIA is transparent. They don’t get any kick back from any company for using any particular investment. The only compensation we get is what we charge and there is nothing more than that.

Our fee is based on money under management. The higher your account value, the lower the rate. It appears directly on your statement and in some cases tax deductible, click here to learn more.

We’re happy to provide you an apple to apples comparison of the fees you’re paying (or the proposed fees you’ll pay another financial advisor) and our fees. Our fees are simple to understand and reasonable. Most importantly, we believe in FULL DISCLOSURE – so we never hide or bury our fees like other brokers or “financial advisors” who are commission-based or “fee-based” (not Fee-Only!).

IRS code Section 212 states that investment advisors and financial planning fees incurred may be deductible as miscellaneous itemized expenses to the extent that they exceed 2% of your adjusted gross income. Other miscellaneous itemized deductions which fall into the same category are fees paid for a safe deposit box, estate planning fees, tax preparation fees, attorney and legal fees, and more. So the short answer is fees paid for wealth advisory services may be deductible and we encourage our clients to ask their accountant or CPA about the deductibility of fees.

Yes. By law we cannot disclose your private information to anyone but you directly, or your other financial advisors (attorneys, accountants, estate planners) with your consent only. Our client’s information is highly confidential and we take this matter very seriously.

Short Answer:
The short answer is we do not hold money and cannot take money. Your portfolio will be custodied at Charles Schwab Institutional. Schwab has implemented safeguards to protect you and your financial assets. Only you have authorization to pull or transfer money out of your account. Any money leaving your account will only be sent directly to your address of record and in your name. They will only let you change your address with written consent. The institutional services team will verifies your signature to the one they have on file. We cannot take possession of cash or securities in any form at any time.

Long Answer:
With that said let me get into it a little further. The first thing to understand is you will have a “Private Investment Account” or sometimes referred to as a “Private Managed Account.” The significance to this is when an investor opens an account the account is held with a major independent custodian. So the investor gets statements directly from that custodian who is not affiliated with our firm in any way.

With this said it is really important for people to understand that our accounts are Private Accounts and that the custodian of those accounts is Charles Schwab. Which is a well known custodian. We are able to manage those accounts using a third party investment authorization form. We are simply given the authorization from our clients who own a private account to be able to manage their account using our methodology.

The last point to note here is that our portfolios are fee-only. That means we have a fiduciary obligation to our clients interests first above our firms. This is important because someone who is fee based or commission based does not have that same fiduciary obligation. This also means we are transparent. We don’t get any kick back from any company for using them. The only compensation we get are what we charge and there is nothing more than that.

Charles Schwab is a member of the Securities Investor Protection Corporation (SIPC), the assets you have custodied are insured by SIPC up to $500,000 for each separate account including up to $1,000,000 in cash.

Such insurance DOES NOT protect your investment principal from market fluctuation or volatility; however it does provide an amount of protection in the event of your custodian going out of business.

Schwab maintains physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. To learn more about their security measures and the measures you need to take, please click the Privacy link on the Schwab websites.

Customer Satisfaction Policy:
Yes, since we are “Fee-only” there are never any commissions paid. Our clients are just as valuable the second year as they are the first year. Our clients are free to move their accounts at any time without penalty. I have six points to our service commitment.

  1. Our clients are the most important people in our business, whether they are visiting in person, by mail, or by phone. They will receive a timely response to all inquiries or contacts by their personal asset manager, not an assistant who does not know you and your situation.
  2. We will provide regular quarterly coaching with you. This allows us to keep you current and continually learning.
  3. Our clients are not an interruption of our work…they are the purpose of it. We are not doing them a favor handling their inquiries….they are doing us a favor by giving us an opportunity to earn their business.
  4. We hold in the strictest confidence all business and personal information pertaining to your affairs.
  5. If you are displeased with any element of our service, we encourage the courtesy of notification so that we may do everything possible to resolve the issue and improve service in the future.
  6. If all of your expectations are met and you are satisfied with our service, we hope you will introduce us to others whom you feel could benefit from our coaching services (i.e. friends, family, co-workers, etc.)

Do you guarantee returns?
No. We absolutely do not guarantee returns whatsoever. Rather we put together solid and focused financial and retirement plans for our clients designed to help them achieve their goals. We cannot predict the future nor guarantee returns in any form.

There have been different estimates for what the fees are.

The fees are subtracted right out of the savings in your account, and there is no requirement to notify you about them: when you get your quarterly 401(k) statement in the mail, you will find no line-item expense labeled “fees.” The bulk of these fees are for investment services. In chapter 13 of Mark’s book he talks more about this topic.

If you want to learn more about how fees might be affecting your 401(k) go watch these videos on YouTube.com from Bloomberg TV.

Part 1
http://www.youtube.com/watch?v=08UPQ3JaRek

Part 2
http://www.youtube.com/watch?v=94eDjL4ciVE

Fees can determine whether your nest egg looks like an ostrich’s or a sparrow’s. Here are two examples.

First example: Over a 20- or 30-year period, these fees can really affect the compounding of your assets. The Department of Labor offers an example: if you have $25,000 right now in your 401(k) and just let it sit there, and your investment returns average 7% across the next 35 years with 0.5% annual fees, you will end up with $227,000 in 2042. But if those annual fees are set at 1.5%, you will end up with only $163,000 in 2042. A 1% difference in fees and expenses would leave you with 28% less money for retirement. Wow. Please note that the 7% return used in this example is for illustrative purposes only and is not indicative of any particular investment; your results will vary.

56 Ways to save money for retirement

  1. GET A MAGIC JACK http://www.magicjack.com/1/index.asp This is a USB jack you plug your home phone into. You can make any local or long distance calls in the US or Canada. You will no longer need a home phone line. Save $20.00 or more a month on local and long distance calls.
  2. START USING COUPONS THE RIGHT WAY When you save a dollar from a coupon, save the dollar. Take it home and put it in your piggy bank for the month. At the end of the month, take that money and put it into your investments.
  3. SHOP OFF SEASON for clothes, Christmas ornaments, gardening tools, etc.
  4. RIGHT-SIZE YOUR COOKING When using the stovetop, match the size of the pot to the burner size. Doing so will keep heat from escaping into the atmosphere, boosting your energy expense. Put a lid on it. Covering a pot brings the water to a boil more quickly, also saving energy.
  5. STOP SPENDING COINS Only spend bills, save the coins.
  6. BUY A HAPPENINGS BOOK AND CLIP COUPONS Let the Happenings book determine where you will eat out. Why buy two dinners when you can buy one and get one free.
  7. GO TO THE LIBRARY BEFORE BUYING A BOOK
  8. DON’T GET YOUR WATER PIPING HOT Set your hot-water heater thermostat at 120 F (or “low”). That’s hot enough for most needs-including dishwashers, which generally have booster heaters. If your hot-water heater feels warm to the touch, wrap it in an insulating blanket to limit energy loss. Use warm or cold-water settings for the laundry, and wash only when you have full loads.
  9. USE GENERIC PRESCRIPTIONS On average save 10% – 15%
  10. GET A CALLING CARD Costco 2-3 cents a minute or a magic jack (idea number 1)
  11. REMOVE LINEBACKER FROM PHONE
  12. DON’T USE DIRECTORY ASSISTANCE
  13. IDLING DOESN’T PAY After starting the car in the morning, begin driving immediately rather that letting the car warm up. An engine warms up faster while it’s operating. Zero miles per gallon is what you get when you park with the engine on. Still, a car runs least efficiently when the engine is cold. So avoid making lots of short, separate trips and cold starts by combining all your errands into one trip.
  14. DON’T BUY EXTENDED WARRANTIES
  15. TAKE YOUR LUNCH TO WORK
  16. LIMIT MAGAZINE & NEWSPAPER SUBSCRIPTIONS Don’t buy a paper every morning. Find one that someone is done reading.
  17. DON’T BUY FROM TELEMARKETERS OR T.V.
  18. BUY CARS AT LEAST 2 YEARS OLD
  19. CHECK WEATHER REPORT BEFORE WASHING CAR
  20. INCREASE YOUR AUTO INSURANCE DEDUCTIBLES AND SHOP YOUR AUTO INSURANCE Shop at least once a year and pay annually.
  21. HAVE INSURANCE WITH SAME COMPANY Home and Auto. Shop your life insurance your will find it cheaper through a third party provider.
  22. DO NOT INSURE THE LAND YOUR HOUSE IS ON Check home owners insurance to make sure your agent did not insure your land with the house.
  23. GET HOUSE APPRAISED TO REMOVE PMI
  24. DON’T DOUBLE UP ON LIFE BENEFITS AT WORK
  25. DRIVE SMOOTHLY Hard acceleration and braking wastes fuel. According to the EPA, such herby-jerky driving can lower your mileage by 33% on the highway and 5% around town.
  26. PAY CAR INSURANCE ONCE A YEAR Don’t pay monthly you get a discount for paying annually.
  27. LOWER THE THERMOSTAT Wear a sweater
  28. SET UP AUTOMATIC BILL PAYING Why spend money on stamps and envelopes?
  29. SET UP CHECKING ACCOUNTS WITH NO CHARGES
  30. RETURN VIDEOS ON TIME
  31. REDUCE OR ELIMINATE USE OF ATM & FEE CHARGING CREDIT CARDS.
  32. USE CREDIT CARDS THAT PAY YOU SOMETHING Free flights or pay you back $$$.
  33. CONSOLIDATE DEBT TO LOWER INTEREST RATES
  34. PAY OFF CREDIT CARDS EACH MONTH Remember what Albert Einstein said, “people who understand interest collect it and those who don’t pay it.”
  35. BUY MAKEUP AT DRUG STORE INSTEAD OF DEPT. STORE
  36. PAY BILLS ON TIME Don’t make bills more than they should be with late charges.
  37. JOIN SAMS CLUB OR COSTCO Buy in bulk frequently used items.
  38. ALWAYS SHOP WITH A LIST AND GO AFTER EATING Avoid over-buying.
  39. DON’T GO TO THE MALL UNLESS YOU NEED SOMETHING Avoid compulsive spending.
  40. BUY LESS SODA & JUNK FOOD Buy soda & junk food in bulk.
  41. DON’T OVERPAY TAXES EACH MONTH Raise exemptions on taxes. You collect the interest instead of the IRS. If you are getting a tax refund at the end of the year that means you overpaid your taxes and you need to adjust.
  42. DON’T MAX OUT 401K Only contribute up to your employer match. Take the rest and put it someplace else like a Roth IRA.
  43. IF YOU HAVE A MORTGAGE, ITEMIZE INSTEAD OF USING STANDARD DEDUCTION
  44. DON’T PRE-PAY YOUR MORTGAGE Use a 30 year over a 15 year. Invest the difference.
  45. USE www.infotube.net TO LIST HOME ON MLS You can pay info tube to list your home on the MLS and still sell your home “for sell by owner.” You save 3% commission to a broker.
  46. DON’T RINSE YOUR DISHES BEFORE PLACING THEM IN THE DISHWASHER
  47. MANUAL CAR WASHES
  48. BE HANDY WITH SCISSORS Give your kids a hair cut.
  49. KICK ONE BAD HABBIT who knows how much you could save.
  50. NEVER BUY FOOD FROM A MINI MART
  51. GET STORE BRANDS INSTEAD OF NAME BRANDS
  52. GO TO DOLLAR THEATERS
  53. CARPOOL TO WORK
  54. CANCEL YOUR CABLE T.V. OR SATELITE T.V.
  55. REDUCE MINUTES ON CELL PHONE
  56. CANCEL GYM MEMBERSHIP AND EXERCISE AT HOME