(Annual percentage of assets, billed quarterly)
After We Complete Your Financial Plan,
You May Want Me To Manage Your Investments For You
Investment Management is optional for you. Not only that, ONLY Ongoing Financial Planning clients can elect this service. That’s because I wouldn’t want to manage your investments unless I were intimately familiar with your Financial Plan.
Create your Investment Policy Statement
Open Accounts & Consolidate
I'll Implement and Invest for you
We Start with Something Unique: An Investment Policy Statement
It's Like A Mission Statement For Your Investments. Learn More.
The very first thing we do is create an Investment Policy Statement. It’s a guide for how you want to have your money invested. For example, some clients don’t want to invest in tobacco or fossil fuels. It’s your personal choice. I want to be sure that your investments are always in line with the values reflected in your Investment Policy Statement.
Your Investment Policy Statement keeps us on track and will be a reference point. It also dictates how to respond to a concentrated position or what types of investments are suitable. The Financial Plan itself outlines goals, how much to save, where to save and the timeline. The Investment Policy Statement gets into the nitty-gritty of investments themselves and dictates specifics like allocation, types of investments, risk, and time horizon.
Investment Management includes:
Wading through all your statements, opening new accounts, and handling the transferring and tracking of all funds into the new accounts.
Placing all trades to implement your investment strategy, while being mindful of tax implications.
Keeping on top of all investments. Doing all monitoring of accounts at least once a month.
Regularly rebalancing all investments to keep you on track with your Financial Plan (usually 1-2 times per year).
Providing a Performance Report (either electronic or paper) on a schedule of your choice.
All of your eligible investments will be held at TD Ameritrade or Betterment, LLC.
Maybe You’re Asking, “Why Would I Need Investment Management?”
Lack Of Time Or Desire—Just Not Wanting To Be Bothered With The Details—But for Most People, the Real Question is...
“Do you have the time, desire, and expertise to manage investments?” The truth is that few people have the skills, time, and inclination. There are many very specialized activities that require the ability to keep your big picture in mind. Oftentimes, the smartest decision from an investment and tax perspective is overlooked.
Maybe you’re sitting there thinking, “Why do I need this? Why can’t I just do it myself?” Don’t worry. There’s no obligation for you to sign up for this service. It’s not for everybody. It’s for my clients who really want to be free of all their time-intensive, brain-wearying investment activities.
Ease of cash flow management is one thing my clients love about this service. As part of the service, we do things like automating your savings to the accounts. If you’re already retired, we automate your “paycheck” to yourself and handle IRA Required Minimum Distributions. We set your payments up so that cash for property tax bills comes to the bank for you in time for you to pay. You’re not scrambling among accounts to get the funds in time.
You don’t have to worry about coordinating among multiple institutions to get the funds to the bank. Things like multiple IRA’s at different institutions can really complicate your cash flow situation. If you make a mistake and don’t take a Required Minimum Distribution from your IRA, the IRS could charge you a 50% tax penalty for that mistake.
Another benefit of this service is investment education. I’m super analytical and nerdy will go as much in-depth as you want or keep it as simple and easy as you want. It’s your choice. At a minimum, I like to be sure that you know what you have in the way of investments and that you understand why you have those investments.
How It Works
Keeping It Simple For You Is My Motto
We finish your Financial Plan. At that point, we know how much you need to save, to where, a general allocation of investments, how long you're investing for, and your risk tolerance (the amount of risk you are comfortable with).
We have a discussion about your option to begin Investment Management.
Our first activity together is to create your Investment Policy Statement. That covers things like what you want in your portfolio and the values that your investments must align with.
Then we start consolidating all your accounts. I will assist* with the account opening and transfer process at TD Ameritrade or Betterment, LLC. While they will initiate and reconcile all the transfers, I will verify all assets arrive in your accounts.
Once everything has transferred, I place the trades to implement your investment strategy in alignment with your Financial Plan.
We discuss and I assist* in the setup of transfers for all your recurring cash flow needs. This may include assistance with the following items:
Linking outside bank accounts for on-demand expenses.
The set- up of a monthly “paycheck” (if necessary).
The set- up of transfers for large and predictable payments (like property taxes).
The setup of payments of occasional expenses like a budget for travel.
Ensure that Required Minimum Distributions (RMDs) are taken, if applicable.
We have quarterly discussions about investments and my monitoring of investments.
I do client investment education on an as-needed basis. You won’t hear me droning on about the markets (I’ll leave that to CNBC). I’ll hit all the important points that apply to you.
I ensure that you are making the right tax decisions, such as timing sales of investments to avoid taxes.
*Simplicity Wealth Management, LLC does not take custody of client accounts or assets. Tasks like account opening, transfers, and linking are completed by TD Ameritrade or Betterment, LLC's back office.