Our FAQ provides insight into our business and our investing philosophy and other useful information.   

Q:  Where are you based?

A:  We are based in Chatham NJ (Bill), Sandy Hook CT (Jim) and Moorestown NJ (Sean). We work with clients in person in  New Jersey / Connecticut / New York / Pennsylvania as well as Minneapolis-St. Paul where Bill travels to regularly. We also serve clients nationwide using video conferencing technology where state regulations permit.

Q:   Do you have any asset or income minimums for clients?

A:  No. We believe that everyone can benefit from unbiased financial advice and developing a plan to support their future goals. If you are willing to invest $750 in your financial future you will get access to a top notch financial advisor.

Q:  What is your investment philosophy?

A:  We are strong proponents of using low-cost index and other passively managed funds. It is very difficult for active mutual fund managers to outperform the market over time sufficiently to justify their fees. A study by Vanguard showed that only 18% of mutual funds managed to beat their benchmarks over a 15-year period.  Other studies have shown that there are no criteria (past performance, manager tenure, etc.) that an investor can use to predict which fund managers will be in that group of 18%.  Rather than choosing fund managers, clients are better served investing in a portfolio of low-cost, broad-based index funds.

Q:  You charge a flat fee for your Annual Advisory service.  Most advisors charge a percentage of assets under management.   Why the flat fee?

A:  We believe that a flat fee is the fairest way to compensate a financial advisor.

Here’s why:  In a typical Assets Under Management (AUM) arrangement, the advisor charges a percentage of the value of the portfolio being managed (typically 1%) as their fee.   So, for example, the advisory fee for managing a client’s retirement portfolio worth $500,000 would be $5,000 per year.  The fee for a $1,000,000 portfolio would be $10,000 per year and so on.

However, a fee that is a percentage of assets in a portfolio does not necessarily reflect the amount of time required to provide quality service to the client.  Does managing a $1,000,000 portfolio require twice as much work as managing a $500,000 portfolio?  Probably not, but the client with the larger portfolio is paying twice as much in fees. The size of the portfolio is only one variable that determines the amount of time and effort needed to provide quality financial advice. As such, we don’t believe it should be the sole factor in determining fees.

Q:  Do you prepare tax returns?

A:  Yes. For those clients that sign-up for our annual advisory program, tax preparation is included as part of the services we provide. We believe that the integration of tax and financial planning is an area where we add a great deal of value for our clients.  Bill is an Enrolled Agent and Jim and Sean are CPA’s. Enrolled Agents, CPAs and Tax Attorneys are authorized to represent taxpayers before the IRS.