Frequently Asked Questions
We believe that participating in a forum should be engaging and professional, but also understand that users can have a lot of questions about getting the most out of their experience. That’s why we’ve provided answers to some of our most frequently asked questions. Check them out below.
How can I become a client?
The minimum to have an account managed by KW Management is $250,000. Our advisor has a maximum number of clients per practice in order to streamline our operations and service efficiency by delivering a sustainable client contact rate and cover the minimum operating expense for continuous technology and customized investment research fee.
What is the fiduciary standard?

This means that KW Wealth will only act in the best interests of your clients and provide investment advice in our clients’ best interests. We only owe a duty of undivided loyalty and utmost good faith to our client. We have a code of ethics and a strong culture of compliance. Furthermore, we owe our clients specific duties as a fiduciary:

             

Where would my investments be held?
Client assets are held at the custodian. We are currently using Interactive Brokers as our sole custodian. Custodians are responsible for the safekeeping of the client's assets. Customer's accounts at Interactive Brokers LLC are protected by the Securities Investor Protection Corporation ("SIPC") for maximum coverage of $500,000 (with a cash sub-limit of $250,000) and under Interactive Brokers LLC's excess SIPC policy with certain underwriters at Lloyd's of London for up to an additional $30 million (with a cash sub limit of $900,000) subject to an aggregate limit of $150 million. Futures and options on futures are not covered. The specific duties and responsibilities of the custodian are:
              
It is KWML's firm policy that our firm will not serve as trustee, we will not have custody of our client's asset, and we transfer any securities or money besides to and from the name of the account holder.
 
What is the difference between RIA and Broker-Dealer?

Investors seeking professional advice have two main types of financial services firms from which to choose: Registered Investment Advisor (RIA) and Broker-Dealer.  RIAs are subject to a “fiduciary” standard when servicing their clients. This means that their investment recommendations have to be in the best interest of their clients and that their clients’ interests must come first. Brokers are held to a “suitability” standard, which is slightly less diligent. The suitability standard means that brokers make investment recommendations that are reasonably suitable for their clients’ financial objectives and needs.  

What does it mean when you are independently owned?
We are an independent, privately held company and brokerage services are provided by a brokerage custodian with FDIC and SIPC coverage. We work for our clients and nobody else.
What kind of assets do you use in your portfolio?
We generally limit investment advice to mutual funds, fixed income securities, insurance products including annuities, equities, ETFs (including ETFs in the gold and precious metal sectors), treasury inflation protected/inflation-linked bonds, non-U.S. securities, and private placements. We may use other securities as well to help diversify a portfolio when applicable.
How do you charge for your services?

We are paid based on a percentage of assets under our direct management or Fee-only Financial Planning. For portfolio management, the fee is calculated under the percent of net asset value. It is calculated daily as an annualized percentage multiplied by the net asset value of the portfolio.  It is only deducted on a quarterly basis.

1. Collect suitability and investment profile information.

2. Provide advice that is suitable, appropriate, and in the client’s best interest.

3. Give full disclosure of material facts and any potential or actual conflicts of interest to clients and prospective clients

4. Serve with loyalty and in utmost good faith

5. Exercise reasonable care to avoid misleading a client; and 6. Make all efforts to ensure best execution of transactions. 

1. Value the holdings. 
2. Collect all income and dividends owed to the client. 
3. Settle all transactions (buy-sell orders). 
4. Provide monthly reports that detail transactions, cash flows, securities held and their current value, and change in value of each security and the overall client since the previous report.