Frequently Asked Questions:
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 to streamline our operations and service efficiency by delivering a sustainable client contact rate and covering 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 your client's best interests and provide investment advice in our client's best interests. We only owe our client a duty of undivided loyalty and utmost good faith. We have a code of ethics and a strong culture of compliance. Furthermore, we owe our clients specific duties as fiduciary:
Where would my investments be held?
Client assets are held by 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:
What are the different fees that brokers and advisers charge?
Your fees will depend on your agreement with the broker or adviser.
Typically, you pay a broker a commission or markup fee every time you buy or sell an investment. You may pay other fees and costs related to services and investments. From a cost perspective, you may prefer a transaction‐based fee if you do not trade often or if you plan to buy and hold investments for extended periods. Typically you pay an adviser an ongoing asset-based fee based on the total value of your account. You may pay other fees and costs related to services and investments. An asset‐based fee may cost more than a transaction‐based one, but you may prefer an asset‐based one if you want ongoing advice or someone to make investment decisions for you. You may prefer a wrap fee program if you prefer the certainty of a single fee for advisory services and commissions.
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 also use other securities 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 account's fee is calculated and accrued each trading day based on the account value on the previous day, after considering deposits and withdrawals, for determining the market value of the assets upon which the advisory fee is based. The calculation is (NAV * Fee %) / 252. Interactive Brokers deducted the fee from the client's accounts quarterly in arrears and sent a notice to the client by email and to the Customer Service Message Center.
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 the value of each security and the overall client since the previous report.
5. It is KWML's policy that our firm will not serve as trustee, we will not have custody of our client's assets, or we will transfer any securities or money besides to and from the account holder's name.