At Conceptual Financial Advisors, LLC we offer fee-only investment management services. Additionally, we have elected to offer our clients ongoing financial planning services as a part of our asset management services. We believe this provides a more comprehensive approach to asset-management through incorporating other areas of financial planning (tax, estate planning, etc.)
WHAT TYPE OF ACCOUNT DO YOU MANAGE?
Most any type of account can be managed, but most commonly we assist with IRAs, Roth IRAs, Trust Accounts, Individual/Joint Retirement Accounts, and employer-provided qualified plans.
WHERE ARE MY ACCOUNTS HELD?
We hold accounts with a large, independent custodian, currently TD Ameritrade. We also utilize specific Separate Account Managers. The custodian will provide you with reports and statements independent from us and provides a valuable “check and balance” on our firm. Additionally, since we hold no physical money in our facility, the custodian is responsible for receiving, processing, and distributing funds to you.
HOW ARE ASSETS MANAGED?
CFA currently has various model portfolios comprised of a mix of institutional class mutual funds, index funds, and exchange traded funds. We also utilize specific Separate Account Managers. For specific situations, we offer one flat-fee deferred variable annuity platform with no mortality/expense charges and a well diversified investment choice menu. We assist our clients in choosing a portfolio based on their tolerance for risk, their goals for the underlying assets and their time horizon, among other factors.
We re-balance portfolios on a quarterly basis, or as rapid market changes dictate. We make adjustments to the underlying portfolio percentages and holdings as dictated by our investment committee discussions. Changes and trades are made across models and accounts on a “block” basis, so our clients in a particular model experience the same results and prices, to the extent possible.
We manage on a “household” basis for those situations where we have more than one account under management. This allows us to hold tax-sensitive investments inside of a retirement account, whereas less sensitive instruments would be held in a non-retirement account.
Need a more custom portfolio? We are willing to do this in specific circumstances. Because of the loss of efficiencies, we have an additional fee for this service. All other services remain the same (re-balancing, etc.)
Alternatively, we will provide recommendations for Separate Account Managers, which provide an even higher level of customization than we can provide locally. Fees generally are slightly higher, but there is a much higher control of your individual investments. This is sometimes helpful if you have a significant concentration of a particular stock, or if you have certain moral, ethical or religious factors that play into your investment decisions.
WHAT FEES DO YOU CHARGE?
We collect an asset management fee, which is billed at the beginning of each month and debited (in most circumstances) from your account around the 15th of each month and described in our Wrap fee Brochure. The fee schedule is as follows:
- First $0 to $500,000 1.0% divided by 12 = 0.0833% per month
- Next $500,001 to $1,000,000 0.75% divided by 12 = 0.0625% per month
- Over $1,000,001 0.50% divided by 12 = 0.0416% per month
Clients desiring a “custom” portfolio outside of our models are charged an additional 0.25% per year.
Currently, we have no set-up fees, trading fees, custodial fees, retainer fees, etc. Clients with total investment assets less than $50,000 are charged $500 per year flat fee, regardless of portfolio size.
Note that underlying investment options generally have their own internal expense ratio, which in our portfolios average currently 0.45% - 0.85% per year. These are deducted from investment performance automatically and are consistent for all investors in the particular choice.
IS THERE A MINIMUM ASSET SIZE?
Yes and no. As a firm we have never had investment minimums, as we believe every investor needs to start somewhere. However, for our managed assets models, a $250,000 minimum is necessary due to restrictions placed on us by some of the investment managers. We have quarterly rebalanced ETF models available for households less than $250,000 in investable assets.
DO YOU INCLUDE FINANCIAL PLANNING SERVICES?
Yes we do. We include most components of our OnTrack financial planning process, as well as “a la carte” services to households with over $250,000 of investments under our management. Depending on portfolio size, there may be some limitations on included services, with additional hourly services always available.
DO YOU CHARGE COMMISSIONS?
No, not for advisory services. Please note that we do have commission-based services available through our affiliate company, Conceptual Financial Planning, Inc. and CFPI’s broker/dealer, Fortune Financial Services, Inc. If you are interested in these services, please discuss with a representative from CFPI. This is a separate and distinct service and we do not generally commingle the two. (Conceptual Financial Advisors, LLC/Conceptual Financial Planning, Inc. and Fortune Financial Services, Inc. are not affiliated.)
WHAT IF I HAVE OLD ASSETS THAT I'D LIKE YOU TO HOLD, BUT I HAVE NO INTENTION ON SELLING?
We have the capability to hold, yet exclude certain assets from our management re-allocations and fees. Please discuss your particular situation with one of our advisors.
CAN YOU PURCHASE INDIVIDUAL STOCKS FOR ME?
We do have accounts available where if you wish to purchase individual stocks, we can facilitate that for you. The cost of each trade is passed directly to you. You may find it less expensive to use one of the many online services for trading stocks. We can provide info and discuss your stock choices with you, with the time spent on these items allocated against your available financial planning hours (for portfolios less than $500,000).
WHERE CAN I FIND MORE INFORMATION?
Consult our 2022 Conceptual Financial Advisors LLC ADV Part 2A & Wrap Fee Program Brochure which is also available upon request to any CFA staff member. This form describes our services, fees, biographies and possible conflicts of interest in greater detail.