Frequently asked questions (FAQs)
Frequently Asked Questions (FAQs)
for our
Private Account Consultant Management Services
Q: Is this the same as a hedge funds, private equity, venture capital, private credit or financial advisor?
A: No. Our emphasis is on managing ordinary and tax-deferred accounts for individuals, privately held corporations and trusts, not selling investment products. We work with you to create an investment plan specific to your information provide on our Client Profile Form as well as the Current Funds and Asset Allocations Form. We then build a personalized portfolio best suited to meet your needs and the future expectations of the various preferred markets as well as the anticipated economic business cycles. Unlike hedge funds, private equity, venture capital, private credit, and financial advisors, we are not compensated for the products we choose to invest clients’ assets in.
Q: What makes you different from others who offer similar services?
A: First, we specialize in meeting the investment management needs of individuals and corporations, through our secure “online” consulting services. We are not offering this service as a lead-in to sell insurance, annuities, owned ETFs, mutual funds, or other commission-based financial services. Second, we are not dedicated growth or value managers. We recognize that various stages of the economic business cycles favor different market positions and we retain the flexibility of moving between a broad range of investment opportunistically. Third, we are active consultant managers with a goal of outperforming the various benchmarks by generating a positive rate of return through either a rising or declining stock market. Our performance bonus is based on achieving a 12% rate of return threshold on assets under consultant management in a twelve-month fiscal period, after fees. While we cannot assure you that we will be successful in continually attaining this goal, we know of no other manager willing to quantify such an above average threshold for a performance bonus.
Q: What kind of holdings will I see in the portfolio?
A: Typically, we uses Exchange traded funds or (ETFs) or open-end no-load mutual funds to implement its investment views, however, the asset allocation may also include individual stocks, bonds, preferred stocks, and the preferred exchange traded funds (ETFs) as well as closed-end mutual funds.
Q: What is your minimum account size?
A: The minimum account size is $5 million, so that we can effectively provide our Private Account Consultant Management Services to our clients, and normally prefer to manage (consult on) between 10% to 30% of a clients net worth, in order to provide net worth stability and overall growth. This minimum investment level allows us with the flexibility of accumulating positions in the various investment vehicles, to enhance diversification and, in some cases, a financial means for hedging existing profitable positions.
Q: I have reviewed your consultant management fees and incentive fee tied to performance. Are there any other fees associated with your managed account consulting services?
A: Yes. The client will incur expenses for any mutual fund or exchange traded funds held in the account(s). Typically these include management and 12(b)-1 fees, but may also include transaction and/or short-term redemption fees. Additionally, the client pays any transaction fees levied by the discount broker for buying and selling exchange-traded securities such as stocks, bonds, close-end and exchange-traded funds (ETFs). We are extremely fee-conscious and looks to avoid, or minimize fees paid by the client whenever possible. Since our management services arrangement is private, between you and Private Account Consultant Manager, we offer you suggestions in the negotiation process with your discount brokerage firm, so that you obtain the lowest possible fee schedule for the various transactions.
Q: Will you be the custodian on my account(s)?
A: No. Clients’ account(s) are established through discount brokerage companies, including Fidelity Investments, Interactive Brokers, and other discount brokerage firms. We retain limited power of attorney through the private account consultant management services, and discretionary authority to buy and sell securities Online through the Internet within the account on the clients’ behalf. Furthermore, the arrangement between you, the client, and ourselves is kept confidential, and it is the discount brokerage companies’ understanding that “you” are the sole authorized trader of the account. The advantages of security, safety and privacy for this private arrangement are further outlined throughout the provided material.
Extra step for online fund security: Once the online self-directed brokerage account is established, you can have an “extra layer of fund security” by logging into your online brokerage trading account, clicking on the “transfer“ link, then, select from the drop-down menu “transfer lockdown,“ where you would be allowed to setup a completely different password from your login, to disable or enable fund transfer abilities.
Q: How are the management fees, and when applicable, incentive fees billed as well as paid?
A: Management fees are billed quarterly at the beginning of a new quarter and is based on client account balances at the close of the last calendar day of the prior quarter. Clients can either choose to pay for our services with other non-managed funds or simply withdraw the funds from the managed account and pay the bill accordingly. Clients have the same options for paying the twelve-month fiscal period performance bonus, when it is applicable, but would prefer that it be transferred to a non-managed account, before wiring the funds to us.
Q: Does you or anyone affiliated with Private Account Consulting Manager have the ability to withdraw assets from my accounts(s)?
A: No. No one has the ability to withdraw assets from your account(s). Our Private Account Consultant Management Services is a private arrangement between you and ourselves. You are the only person’s name on the account(s) and the only one who communicates with the discount brokerage firm, if necessary. We execute the various transactions Online through the Internet on your behalf.
Q: How will I know what is happening in my account(s)?
A: You will receive both trade confirmations, and monthly statements from the discount brokerage firm. Furthermore you can access your account balances and other information at anytime Online through the Internet or your discount brokerage firm’s toll-free numbers.
Q: Can I write checks, or receive monthly distribution from my account(s)?
A: Yes, the preferred discount brokerage firms mentioned earlier offer these services, but we prefer that you budget for these annually, since it would affect our accounting process and investment basis levels.
Q: What if I decide to cancel my relationship with you?
A: There is never any obligation to stay with our consultant management services, however, we suggest that you continue the use of our services for at least one year, and preferably for three to five years, before drawing any final conclusions. In the unlikely event that you are not completely satisfied with our services, you may terminate the relationship by notifying us. Your account(s) can then stay with the discount brokerage firm currently used or be transferred elsewhere.
Q: How do I get started?
A: It is easy. Setup and fund your preferred type of self-directed brokerage account at Fidelity Investments, Interactive Brokers or other discount brokerage firms as outlined within the provided Setup Procedures. There are other discount brokerage firms and banks worldwide that offer Self-Directed Online Brokerage Services, and we would be willing to confirm their compatibility and availability for our consultant management services, if you provide us with the preferred name.
Click here to fill-out the Client Profile Form, the Current Funds and Asset Allocations Form, and the Private Account Consultant Management Services Agreement, and you will receive a filled-in copy, via email, upon completion. Your signature, commencement date, and brokerage account number will be provided later, when scanning and emailing us a copy or utilizing the e-signer, docusign.com. We will schedule a conference call to discuss your information, and our approach to consulting on your self-directed brokerage account Online, based on the information provided within the filled-in Client Profile Form as well as the Current Funds and Asset Allocations Form. If you have any questions regarding the material contained within this website, you are welcome to e-mail us directly at JOHNTMOIR@aol.com .