Investment Management

All things being equal, those who pay less have more; however, it is not good enough to only save money, we must save time and money, individually and collectively.

Do not be ashamed if you do not know what you are paying for the management of your money. Based on our experience, we believe over 95% of all investors do not know the full costs, such as:

Advisory Assets Under Management Commission, TAMP Commission [Third Party Asset Management Platform], Supervision Commission, Brokerage Charge, Trade Charge, Mutual Fund Transaction Charge, Expense Ratio, Sales Charge [Front, Back, Level], Annual Account Charge, Inactive Charge, Research and Data Subscriptions, Trading Platform Charge, Paper Statement Charge, Closing & Transfer Charge,

Non-Transparent Bundled

In our opinion, based on our review of thousands of ADVs, over 95% of all Registered Investment Advisors use a bundled service approach with retail clients based upon an assets under management (AUM) scheme. AUM schemes skim a percentage of the total value of the account off-the-top on a quarterly basis. This method is used by conflicted traditional and robo advisors. A small percentage will add up over time and will significantly reduce long-term value.

Example

  • Bob, James, and William each invested $200,000, but each did it differently.

  • Bob pays for unlimited trading at 0.0208% per month (0.25% annually), based on the value of his account. Bob is a client of FCF and pays his FCF management fee directly rather than as a deduction from the cash held in his account.

  • James pays an investment advisor 0.4375% per quarter (1.75% annually), based on the value of his account. James pays more if the account is up and less when it’s down. The commissions James pays are deducted from the value of the account. The breakdown for James is this: 1% for the investment advisor (RIA) he works with, 0.5% for the third party asset management platform that performs all of the actual management and back-office operations for the RIA, and 0.25% for trading.

  • William put his money into a variable annuity, and at the recommendation of the agent/broker, selected additional death and withdrawal riders (benefits). The cost of the variable annuity is take off the top each month and totals 3.5%.

  • Bob, James, and William each earn an annual 9% gross rate of return for 20 years. At the end of 20 years,

    • Bob has $1,070,570.

    • James has $810.916.

    • William has $583,551.

When a conflicted advisor states that the percentage paid is only one or two percent per year, remember this example because a small amount can and does add up over time. There is no such thing as a free lunch; however, non-transparent costs through complex bundled products and AUM-based schemes are anti-consumerist.

Transparent Unbundled

Transparency and unbundling involves the bifurcation of advice from management; this is a key ingredient for true fiduciaries like FCF.

Transparent Fees

  • You know exactly what you are paying.

  • You know exactly what your are paying for.

  • The fee for asset management is never based on the value of your account.

  • The hourly rate for advice is based upon a published and known schedule.

  • There is no negotiation, discounts, or association discounts.

  • All charges and ancillary costs are fully disclosed.

  • There are no “special” off-book deals, promotions, or “wink-and-nod” agreements.

  • Investment advisors are prohibited from accepting gifts, trips, bonuses, or awards paid directly or indirectly from product vendors.

Bifurcation

This is incredibly simple yet rare. Investment advice should be separate and distinct from investment management. Why? Because… In addition, neither a Registered Investment Advisor or an Investment Advisor Representative should engage in financial planning. Why? Because…

Unbundling

When an advisor, agent, banker, broker, or financial planner does not charge a fee for financial consulting services, you know you are working with a conflicted and commission-based salesperson. It is a breach of fiduciary duty to mingle financial planning with advice or financial product procurement. We do not offer financial planning, instead, we empower our clients with the tools and on-demand instructional audios, videos, and documents to do 99% of what one needs. Advice, Management, and Planning are distinctly different. If you think you need a true fiduciary-based financial planner, listen to the the following audio for the truth about financial planning.

 

The FCF Investment Management Programs - Roadway, Highway, Expressway

The hierarchy of roads, according to functions and capacities, provides an ideal descriptor for the 3 FCF programs. The three broad categories are] roadways (local paved and unpaved), highways (major and minor arterials), and expressways (multi-lane and divided, aka interstates).

Roadway

$5 per month, per brokerage account for investment management.

0% Assets Under Management Charge by FCF

No Per-Trade Commission Charge

$200 per hour for investment advice.

$50 per hour for administrative assistance.

The Roadway is for those with $4,000 or $0 and invest at least $25 per month. The Roadway approach utilizes time and volatility based portfolios, each comprised of 7 to 13 exchange-traded funds (ETFs). The Roadway is for those with limited experience, or who prefer a fully-delegated passive approach. The Roadway program includes a single brokerage account, the ability to utilize multiple ETF-based investment silos within a brokerage account withdrawal timing and overall objective, assistance with the purchase of no-load variable life and annuities (no commissions), and access to client-only audios, videos, and live presentations. The Roadway is also ideal for those who do not want complex brokerage statements that show individual holdings, and prefer to keep everything it extremely simple.

Highway

$50 per month, per brokerage account for investment management.

0% Assets Under Management Charge by FCF

No Per-Trade Commission Charge

$200 per hour for investment advice.

$50 per hour for administrative assistance

The Highway is recommended for those who start with $40,000 or $0 and invest at least $100 per month. The Highway approach is for those with experience and who want a portfolio of primarily based on a large number of individual stocks with limited use of ETFs and mutual funds for bond allocations. The 6 Highway portfolios are Income, Income & Growth, Balanced, Growth & Income, Growth, and Aggressive Growth. The Highway program includes a single brokerage account, assistance with the purchase of no-load variable life and annuities (no commissions), and access to client-only audios, videos, and live presentations.

Expressway

$500 per month for investment management.

0% Assets Under Management Charge by FCF

No Per-Trade Commission Charge

$500 per hour for wealth advice.

$50 per hour for administrative assistance.

The Expressway is recommended for those who start with $400,000 or $0 and invest at least $1,000 per month. The Expressway approach is for those with extensive investment experience and seek to silo (segregate) investments based upon ownership, withdrawal timing, and overall objective. The Expressway program includes up to 20 brokerage accounts at no additional cost, self-directed accounts, Blacklist options (the deselection of individual securities based upon the client’s criteria), assistance with the purchase of no-load variable life and annuities (no commissions), and individual 30-minute quarterly video or audio conference calls. Expressway clients also have access to all client-only audios, videos, and live presentations, and full access to advanced wealth management and individual stock and market commentary and insights.

SWAT

Sudden Wealth Awareness Training

$5,000 per day, 8 hours per day maximum.

Travel expense extra for travel and overnight accommodations; generally 120 miles from FCF offices.

Sudden wealth causes distress in some, stupidity and early death in others, but for a few, dreams come true. We are not therapists, psychologists, or coaches, instead, we are highly experienced, trained, and forceful with SWAT clients about the facts and reality. You will be your biggest problem, followed by family, friends, neighbors, relatives, and co-workers. Third on the list will be commission-based advisors, agents, bankers, brokers, and financial planners. Feelings of isolation, guilt, and lacking trust and confidence in others is common. The transformation from paycheck-to-paycheck survival to a lifestyle of the rich and famous often fades quickly because of the inability to rationally grasp limitations. The failure to manage expectations will result in failure. With newfound wealth there are new problems that a true fiduciary-based investment advisor like FCF, will help you identify, understand, and navigate. One of the advantages of using FCF is our ability to tell others “no” on your behalf. Working with a fiduciary-based team that involves FCF, an attorney and accountant, you are better positioned to do what you like, are good and profitable at, and can control.