Help with Investment Management

Saving and investing is a key part of most everyone’s financial plan.  Accumulating wealth and then managing it to grow and last for a lifetime is a significant challenge.  Life is busy and the financial world complex.  Most successful people find that their greatest talents are in areas other than finance.  They don’t have the time, or the knowledge, or the interest in managing the money they have accumulated.

We do.  Our investment management work on behalf of clients is a key part of our business.  We help make sense of the financial news, we serve as a buffer between clients and their emotions, and we help them choose wise investments.

 

Overview

Investment management is a process.  Clients who engage TrustWell for this service get our help with:

  • setting investment goals
  • determining risk / loss tolerence
  • building an appropriate asset allocation and choosing suitable investments
  • monitoring / rebalancing the portfolio, as necessary, on an ongoing basis

We emphasize diversification, not just within a particular asset class, but also across multiple asset classes.  For most clients, US stock funds and US bond funds form a significant part of the portfolio, but we are increasingly recommending foreign and alternative asset classes to act as a hedge against US stock market volatility, interest rate risks, and overexposure to the US dollar.

 

Investment Management – How it Works

If you choose TrustWell to manage your money, we will help you open an account at the third-party custodian (Charles Schwab Institutional) and transfer your money into your new account there.

Charles Schwab Institutional offers low-cost access to thousands of stock and bond mutual funds, CDs, money market funds, US Treasury bills and bonds, individual stocks and bonds, and exchange traded funds.  In many cases, funds that you already own can be transferred directly into your new Schwab account without selling them first.  Based on your needs, your TrustWell advisor will use a combination of these instruments to build a portfolio that fits you and then manage it on an ongoing basis.

The account is held by Charles Schwab Institutional, not by TrustWell, and you retain full control of your account at all times.   The investment management agreement that we will ask you to sign gives your TrustWell advisor the limited authority to buy, sell, view, and manage investments on your behalf within your Schwab account.

You will receive a monthly statement directly from Schwab and a quarterly statement from TrustWell.  These statements show your current holdings, their dollar value, and their performance for the period.

 

TrustWells Account Management Fee

 TrustWell’s annual fee for ongoing management of your account is calculated as a percentage of the account’s value.  One fourth of TrustWell’s annual fee is deducted automatically from the account at the end of each quarter and that amount is shown on your next Schwab account statement.

 
Charles Schwab Transaction and Custodian Fees

Charles Schwab may also charge fees for the transaction and custodian services it provides for your account.  These are in addition to TrustWell’s management fee and they vary based on the level of activity within your account.  Schwab transaction and custodian fees are deducted automatically from your account and appear on your next account statement.  As fiduciaries, we seek to minimize these fees.  TrustWell does not receive any portion of the transaction and custodian fees our clients pay to Schwab.

 
Mutual Fund Fees

The mutual funds and ETFs held in your portfolio will charge ongoing fees.  These fees vary by fund and are separate from other fees that TrustWell clients pay.  These fees are disclosed in the prospectus for the applicable fund.  Their impact is reflected in the net asset value of the fund’s shares and do not appear on your account statements.  TrustWell does not receive any portion of these fees, either.

 

We are happy to answer questions about investment management, and our disclosure brochure has additional information.  Contact us for a copy and to find out how to get started.

TrustWell Financial Advisors