Frequently Asked Questions
When third party, institutional money managers are engaged, clients pay one flat, quarterly fee on the size of the account. For an account in the $1 million to $10 million range, the fee is normally 1 % to 1 1/2% per annum. That fee covers all expenses, including management, custody, transaction costs (commissions), quarterly reporting and benchmarking. If a client deposits securities into one of these managed accounts, the manager will liquidate the securities commission-free.
Life insurance premium finance is used to leverage succession capital. While our clients often have the ability to pay premiums that can be several hundred thousand dollars each year, many find writing such large checks to be unappealing. (Click here for an article on this topic).
All client assets are held by one of two large, financially sound and experienced custody organizations: J.P. Morgan Clearing Corporation and Pershing, LLC. Private Client Group does not custody client assets. Cash and security positions are recorded on monthly statements and sent to clients directly from the custodian. Portfolios can also be viewed on-line.
We use a detailed questionnaire. (Click here to review it). The questionnaire, however, only serves as a starting point for on-going discussions with clients and, in many instances, family members. We determine a client’s income requirements, investment goals, time horizon, risk tolerance, and future life style projections. As circumstances change, so will asset allocation. Since our clients/prospects have strong financial profiles, the equities portion of the portfolio is often larger than the fixed income segment. Some clients may have appetites for alternative investments. Alternative investment strategies are available for accredited investors.
Private Client Group is organized so that through First Allied Securities, Inc., we can access many investment products and offerings from its two custodians: J.P. Morgan and Pershing (a Bank of New York Mellon company) and many other firms. As a result, our product offerings exceed those of the wire-house firms. At the same time, our cost of operations is less than the large firms allowing Private Client Group to be very price competitive.
Perhaps Private Client Group’s most significant advantage is its independence. We are not under any pressure to sell products that may not be suitable or in the best interests of our clients.
Finally, we believe there are few financial consultants who have had more varied, successful and financially rewarding careers than the firm’s Senior Partner, David W. Johnson. David, along with the firm’s strategic partners, feel that Private Client Group can confidently compete with anyone.
Individuals and families with investable net worth who are looking for unbiased, fee-based investment advice and “high touch” personal attention. After time horizons, risk tolerances and other factors are taken into consideration, top rated institutional money managers are normally engaged to implement a plan.