Our independence means that we respond to our clients’ needs, not those of a large firm. Our objective, fee-only advisory model is very different from financial advisors who dually serve their company’s needs as well as their clients. The assets we manage have passed through our screening process and are held by an independent custodian, Pershing. OFM receives no compensation from the products it selects for client accounts. Please visit the OFM Difference for an expanded response.
We are an independent, unaffiliated Registered Investment Advisory firm. Our only formal relationship is with our custodian, Pershing LLC. Pershing’s role includes safe-keeping of assets, tax reporting, accounting of transactions (purchases, sales, dividends and interest), and execution of trades.
Following the initial analysis and implementation of our recommendations, our continuous service model begins. That model includes – Scheduled reviews that include updates of clients’ investment, retirement, and estate situation. – Timely response to calls, emails, etc. – Regular checks of client portfolios to re-balance, if necessary; tax plan; review income needs, if any, etc. – Newsletters – Hourglass Blogs – Misc. services issues that impact our client’s financial lives. – Coordination with our clients’ other advisors (i.e. accountants and attorneys)
We ask them. Common questions at the end of client reviews are: “Is there anything else that we should be doing for you?” “Did we cover everything that you wanted to cover?”
We also asked our clients via a recent independent, formal survey. The survey company received a response from 75% (way above average) of our households that resulted in a satisfaction rate of 98%.
Another indication of client satisfaction is their willingness to refer friends, colleagues, and relatives to us. Our growth is directly attributed to client referrals.
We are most grateful that over 60% of our clients have been with us for 10 years or longer.
We charge hourly rates for an initial financial planning analysis that would include developing an investment plan, retirement planning, and estate planning. Complexity, time, and the experience of our advisory team members determine the initial planning fee.
On an ongoing basis, we charge a Financial Planning and Asset Management Fee which is a percentage of investable assets. Ongoing services are detailed above.
A transparent discussion of client fees takes place at our initial meeting.
Yes, our minimums for assets under our management range from $500,000 to $1,000,000 depending on the experience level of our advisory team members. Please note that our minimums include assets in workplace retirement plans (e.g. 401(k) plans). There is no minimum for children of clients.
The establishment of our minimum allows for the uncompromising service to our existing clients.
We believe that short-term direction of the capital markets (i.e. stock and bonds) is not knowable. For that reason, we don’t forecast nor do we place value in the forecasts of others. Further, we are not market timers, we don’t sell in down markets (get too fearful) nor do we buy in up markets (get too greedy). So, what do we do?
First, we select broad asset classes.
– Fixed Income
– Stocks
– Multi-Asset Strategies
Then, we select subsets within each broad asset class.
EXAMPLE – Stocks:
– Large Company Stocks
– Mid/Small Company Stocks
– International Stocks
Then, we select subsets within selected subsets.
EXAMPLE – International Stocks:
– Developed Markets
– Emerging Markets
Then, we weight (%) each broad asset class and subset.
When our asset classes are selected and weighted, we run probability studies to determine levels of investment returns and volatility over a ten-year time horizon. Then, on an ongoing basis, we monitor the portfolio and re-balance to targeted asset class allocations.
Our clients’ investment portfolios are built with exchange traded funds, mutual funds, individual bonds, and limited individual stocks. Each asset is screened by our Wealth Managers and are objectively selected. That is, we do not receive any compensation from the managers we select. We receive no commissions or incentives.
The fastest growing part of our service models includes the management of assets within 401k plans that are held at an employer’s custodian (e.g. Fidelity, Vanguard). First, we assist with the asset allocation decision to be consistent with our clients’ investment plan. Then, we help with specific fund selection, whether the choices be few or extensive. We review the plans to make re-balancing and/or asset replacement decisions.
Many clients have told us that they sleep much better after delegating those decisions to us. Those 401k assets are often a significant part of their investment plan.
Please see “Whom We Serve”