Frequently Asked Questions
What types of clients do you typically serve?
The clients we serve are people who want to take control over their finances. They understand that careful, informed planning is critical to working toward their goals and building a confident future. They recognize the value of professional advice, and are focused on managing wealth through disciplined investment strategies over the long term.
Because changing life circumstances typically give rise to the need for financial advice, clients can seek our services when going through significant transitions such as retirement, divorce, the loss of a spouse, the birth of a child, the receipt of an inheritance, or the sale of a business or other significant asset. During these transitions, we can help transform a confusing financial situation into one that is sustainable, tax-efficient and directed at pursuing our clients’ evolving needs.
Is there an account minimum?
The individuals and families who stand to benefit the most from our services typically have at least $500,000 in assets available for us to manage. While we offer hourly consulting for clients with assets below this minimum, our investment approach and the resources we provide offer specific advantages to larger portfolios.
How are you compensated for managing investments?
For Fee-Based Investment Management services, we receive a fee based on the value of the assets we manage. We firmly believe that this fee-based compensation structure serves to closely align our interests with those of our clients. Our fees are billed quarterly, and are deducted directly from our clients’ accounts.
Certain alternative investments are not eligible for fee-based compensation. In circumstances where such investments provide clear diversification or expected performance advantages to a portfolio, we are typically compensated through a one-time commission.
In addition, for projects that involve concentrated analysis, we provide financial consulting services on an hourly basis. For clients for whom the purchase of specific risk management products—such as annuities or life insurance—is a necessary component of their overall strategy, we generally receive a commission from the product’s originating company. We do not receive any other fees for the sale of financial products. In addition, our clients are always free to purchase risk management products through sources other than us.
How is your being an independent advisor significant to me?
Our decision to provide financial advisory services independently, rather than as part of a national brokerage firm with investment banking interests, means our advice is uninfluenced by a parent company’s desire to sell certain securities or investment products. Since we are independent, we are also not under pressure to generate sales quotas, but are free to focus solely on our clients’ best interests.
Our goal is to provide you with objective advice that helps you take control of your finances and work towards your short- and long-term financial goals. Being independent is important in helping us do this.
How does your affiliation with LPL Financial benefit me?
LPL Financial is one of the nation’s leading financial services companies and a publicly traded company on the NASDAQ under ticker symbol LPLA*. The firm’s mission is rooted in the belief that objective financial guidance is a fundamental need for everyone. LPL does not offer proprietary investment products or engage in investment banking activities; this means advisors affiliated with LPL are not pressured or influenced by LPL to sell its products. Thousands of financial advisors nationwide are able to rely on the firm’s tools and resources to help them provide financial guidance and recommendations to help meet their clients’ needs. For more information about LPL Financial, visit www.lpl.com.
* As reported by Financial Planning magazine, June 1996-2020, based on total revenue.
How can I get started?
We would begin with a preliminary 10 to 15 minute phone conversation to discuss your circumstances and objectives, as well as our services. If we both see potential for a good fit, we would then arrange an initial meeting that would normally be attended by you, your spouse, and anyone else who would share accounts with you.
At the meeting, which would last from one to two hours, we would further explore your financial circumstances and future goals. Douglas would walk you through his investment approach and rationale. The goal of this meeting would be to mutually determine whether establishing a client relationship makes sense.
If we both agree the fit is good, Douglas would work interactively with you to develop a thorough analysis of your present financial position and to establish clear, attainable goals. The end result would be a plan targeted to your unique circumstances and objectives, including specific investment and financial planning recommendations.
How much do your financial planning services cost?
Our fee for an initial financial plan is based on the complexity of our client’s financial circumstances and planning objectives. For clients with relatively simple sources of income and straightforward planning goals, our base fee is $1,500. For clients with more complex business holdings and sophisticated estate and trust planning needs, our fee will be significantly higher.
Clients can opt for an ongoing financial planning relationship, which includes annual updates to their plan as well as access to WealthVision® the integrated financial planning software we use. For more information about WealthVision®, please click here. Our fees for ongoing financial planning typically range from $1,000 to $1,500 per year.
Will I need to sell my current investments in order to work with you?
Typically, our clients’ interests are best served by making adjustments to their existing portfolios, though changes can often be implemented over time. Prior to making recommendations, we will consult closely with you to ensure that we fully understand the rationale for your current investments, as well as the tax consequences of any proposed changes. We will endeavor to work your existing holdings into our recommendations to the extent that doing so would not result in undue risk or undermine your stated investment objectives.
Can I still work with you even though I have certain investments I’d like to manage myself?
Yes, you can establish multiple accounts at LPL Financial, paying an advisory fee only on the assets you would like us to manage. Alternatively, you can hold assets you would like to manage yourself at another broker/dealer. Since effective financial planning begins with a high-level view of your overall circumstances, it will be important for us to gain an understanding of your full portfolio, even if we are only managing a portion of it.
Will you consult with my tax advisor and/or estate planning attorney? If so, will you charge me an extra fee?
Generally, consultations with tax and legal advisors are included as part of our Fee-Based Investment Management and Comprehensive Financial Planning services. We welcome the opportunity to discuss tax and estate planning alternatives with your other advisors. Recognizing that these advisors may charge you a fee for speaking with us, we will seek your approval before initiating any discussions with them.
How can I access my funds? Is it possible to arrange for periodic transfers to or from my account?
Normally, we recommend that clients establish an Automated Clearing House (ACH) link between their checking account and LPL Financial advisory account. Once established, this link enables you to easily transfer money between your LPL Financial account(s) and checking account. ACH transfers can also be used to set up periodic payments from your LPL Financial account, or to distribute interest and dividends earned from your investments.
What information will you provide that will help me with tax preparations?
At the end of the year, you will receive a detailed, comprehensive report of all taxable events in your account, including interest and dividends received, as well as realized capital gains and capital gains distributions.
Can you help me choose among the investments available through my company’s 401(k) plan?
Yes, Douglas can make investment recommendations for your retirement plan assets that are held at a custodian other than LPL Financial. Current SEC and FINRA regulations require him to make these recommendations under a separate planning agreement with separate financial reporting. In addition, 401(k) advice cannot be made on an ongoing fee basis, but rather would be set up as one or more discrete recommendations that are billed separately.
Douglas' recommendations for your 401(k) would give careful consideration to how each choice would fit within the context of your overall retirement and after-tax portfolios. As part of this process, he would take into account a number of factors such as an investment option’s objective, past performance, fees, risk parameters, rate of turnover and manager tenure.
How will you communicate with me regarding my account?
In addition to receiving quarterly statements that detail the performance and activity of your account, we will typically speak with you several times during the course of the year by phone. We will meet to review your portfolio at least annually, and more frequently as needed. For example, during the initial planning and implementation phase, we might meet several times to make sure all the pieces of your financial plan are coming together as envisioned. In addition, we may occasionally send you special mailings on topics that we think might be of interest to you.
For clients residing outside Colorado, we communicate frequently through phone calls, email, conference calls, online access to WealthVision®, and FedEx.
Please be assured that protecting the security of your personal information is of the utmost importance. See our Privacy Policy for further details about how your privacy will be protected.