Quiz Your Financial Professional Before You Meet
If you feel nervous about interviewing an investment advisor, you’re not alone. Most “financial advisors” are actually sales people (brokers) who are good at sales and marketing, but not much else. I take pride in being able to speak plain English and won’t confuse you with industry jargon. You will find the interview easy and educational. I will walk you through the questions you should ask.
I recommend that you to interview other investment professionals to decide who you’re more comfortable with. Keep in mind, you’re looking for someone to clarify your investment plan, not make it more confusing. If an advisor makes you feel overwhelmed, walk away.
Sullivan Capital Management (SCM) is a fiduciary. A fiduciary is legally bound to act in the best interest of their client. Non-fiduciaries (stock brokers & insurance brokers) are allowed to recommend products that are “suitable” — even if they’re not the lowest-cost or most ideal for you. If your investment advisor is not a fiduciary, run, don’t walk, to one that is.
SCM is a “Fee-Only investment advisor and does not receive commissions or revenue sharing from any sources. Management fee is based on a percentage of the assets I manage for you (1% for accounts over $500K).
In addition to paying an advisor, other firms might charge you other commissions and significant fees – some of them may be hidden from you. At SCM, there is only one low management fee. Trade commissions at Charles Schwab are now ZERO.
I have successfully managed investment portfolios since 1984 through good and bad markets. My success comes from managing clients’ risk while seeking superior investment results. Financial professionals can have a confusing list of initials behind their names which might help them get a job with an investment bank or large brokerage firm but there’s no evidence it provides a client with investment success.
Clients should have near instant access to the investment professional they met, developed confidence in, and hired to manage their investments. At SCM you will speak with Chief Investment Officer, John L Sullivan when you call or write. You deserve no less.
Clients must understand what their investment advisor is doing, how they are doing it and why. The SCM philosophy is to invest in growth stocks when the markets are trending higher and to hold stocks when the markets are going sideways and to transition into the safety of US Treasury instruments when a down market is imminent. Knowing when to move from stock to the safety of Treasury Securities has profited clients and reduced downside risk since 1984.
Your assets will be invested in equities (stocks and Exchange Traded Funds ETF) and US Treasury securities based on your ability and desire to take stock market risk and the current market conditions.
Clients decide how much risk they are able and willing to take. Once established, portfolios will be managed accordingly. A client can change their asset allocation at any time.
All client accounts are held at Charles Schwab & Co. Inc. who will provide you with monthly statements, customer service, and complete tax reporting. Commissions at Charles Schwab are now zero. Charles Schwab provides an ALL IMPORTANT safety check. My quarterly portfolio statements can be compared to your individual Schwab Monthly Statements as a cross-check. I receive no financial incentives from Charles Schwab & Co. Inc.
Clients range from young working professionals in their peak earnings years to retirees who need to generate income for living expenses. When a family’s investment expert becomes incapacitated or dies, the surviving family members are often faced with the difficult task of sorting out a confusing array of investment statement. SCM will provide a summary of all known investment accounts and assist in the decisions necessary for the continued management of those accounts to meet the family’s new financial conditions.