Answers to some of your questions:
What is your investment philosophy?
I believe that good long-term investment results are determined mainly by the management of risk rather than by striving for out-sized returns. My personal and professional philosophy is conservative. My primary objective in all accounts is to achieve reasonable, yet consistent returns over time. I am not interested in being an investment advisor hero but rather a care provider for my clients’ wealth.
Will you work with me personally?
Absolutely. To begin with, I will want to find out as much as I can about your current financial situation, your goals, needs and concerns. We can develop a comprehensive financial strategy for you or focus on specific areas of concern.
To make sure that I have a complete picture of your situation, I can also work with your attorney, your accountant, or other professional advisor.
Based on the information I gather, I will tailor a personal financial strategy that makes sense for you. Naturally, I will explain my recommendations and answer all your questions. Only then and with your approval will I take any action.
Will you be available to me after you start managing my portfolio?
Yes. You can always reach me by phone, fax, mail, or e-mail. I or my staff are always available to answer questions about any aspects of your account. If you’d like to meet with me in person, just call and we’ll set up an appointment.
How do I keep track of what you do for me?
All clients are provided a quarterly portfolio evaluation in addition to a monthly brokerage statement. The quarterly evaluation lists all securities, original purchase date, cost of the security, and current market value. We also provide an asset allocation in numbers and graphic form. Most important, the report shows time-weighted rates of return for each account, so that the investor knows exactly how the account is performing. The percentage return is calculated net of all fees.
Our office maintains a complete record of all transactions and realized capital gains and losses for tax planning purposes. This information is available at any time upon request and is provided to your accountant at tax time. These data eliminate the need for tedious bookkeeping of all transactions.
What kind of portfolios do you currently manage?
Our account minimum is $250,000, although we do consider less in some circumstances. Portfolio design varies according to the needs and circumstances of the clients. Portfolios differ, ranging from those containing a higher allocation to stocks to those which have primarily fixed income assets and are designed to generate maximum income. Each account is individually tailored to the personal circumstances of the client, including risk preferences, age, and tax situation.
Can I afford the kind of personalized care you offer?
Our charges are very affordable and in most cases lower than the cost of doing business with a large brokerage firm.
Our annual investment advisory fee never exceeds 1% of assets
under management. At the beginning of each quarter, we bill you
according to portfolio value. For example, if you place $250,000
of your assets under my management, we will bill you $625 (1/4% or .0025)
for the first quarter. Let’s say that at the end of the first quarter your $250,000 is
worth $255,000; in this case your fee for the second quarter will be $637.50. When we
buy or sell investments, transaction costs are very low, and commissions for all securities that are traded on exchanges are zero.
Why should I use you as an investment advisor?
Besides my experience, there are two salient points in my favor for you to consider:
1. I only have you to answer to. I’m independent and completely free from any pressures to sell one investment over another. One of the main reasons I decided to open my own financial advisory firm was to free myself of the conflicts of interest that can occur when working under the pressure of brokerage firm incentives and recommendations.
2. My compensation is entirely fee-based and I am not dependent on other forms of compensation. My income increases when your assets grow.
I have investments in several places. Will I have any difficulty moving everything to your firm?
As your investment advisor, we make all the arrangements, handle the paperwork, and follow through until all transfers are completed.
Stephen M. Gross, Inc.
725 River Road, Suite 56 -
Edgewater, NJ 07020