How do your services compare with those of the large Wall Street firms?

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.

Are you part of or affiliated with another company?

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.

How do you service your clients on an ongoing basis?

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 clients’ financial lives.
– Coordination with our clients’ other advisors (i.e. accountants and attorneys)

How do you know if your services are meeting your clients' needs?

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.

How do you get paid?

We charge hourly rates for an initial financial planning analysis that would include developing an investment plan, retirement planning, and estate planning. Complexity and time 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.

Do you have a minimum for assets under management?

Yes, please visit our homepage that identifies our service to 3 primary client situations. 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.

What is your investment discipline?

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.

What type of investments do you utilize?

Our clients’ investment portfolios are built with exchange traded funds, mutual funds, individual bonds, and limited individual stocks. Each asset is screened by our Investment Committee and objectively selected. That is, we do not receive any compensation from the managers we select. We receive no commissions or incentives.

How can you help with the management of employer-sponsored 401k plans?

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.

What type of clients do you serve?

Please see “Whom We Serve