The questions people ask before a first conversation, answered plainly. If yours is not here, call (415) 692-0863 or write to contact@inherentwealthfund.com.
What does “fee-only” mean?
It means the only money we are paid comes from our clients. We take no commissions, no payments from fund companies or insurers, and nothing for recommending a product. Because we are paid the same whatever we recommend, one of the most common conflicts in this business is not part of our advice.
How are your fees set?
Our advisory fee is a percentage of the assets we manage for you. The exact fee, how it is calculated and when it is billed are set out in your advisory agreement and in our Form ADV Part 2A brochure, which you receive before you sign anything. We will tell you what the fee would be for your situation in the first conversation, before you decide anything.
Who holds my money?
Your assets are held with our custodian, Charles Schwab. Charles Schwab sends your statements and trade confirmations directly to you, and you can log in and see every holding at any time. You give us a limited trading authority, which lets us place trades in your accounts.
Are you a fiduciary?
Yes, whenever we advise you. As an investment adviser we owe our clients a duty of loyalty and a duty of care: to put your interests ahead of ours, to tell you about any conflict we have, and to give advice suited to your circumstances. What that means in practice is in What a fiduciary actually owes you.
What happens in the first conversation?
About thirty minutes, by phone or video, with no obligation on either side. We ask what the money is for, who it has to outlast and what is on your mind, and you ask us anything you like. If we are a good fit, we explain the next steps. If we are not, we say so and, where we can, point you to someone who is.
What happens after I become a client?
We write an investment policy with you: the allocation, any themes, the limits, the cash you need to keep on hand and the estate structure the portfolio sits inside. You approve it before anything is invested. Your accounts are opened at Schwab, we invest under the policy, and we report against it every quarter. When your life or one of our theses changes, the policy is the first thing we revisit.
Do I have to hold your themes?
No. Every portfolio starts from a diversified core. Whether any themes sit on top of it, and how much of each, is decided by your investment policy: your goals, your horizon, your need for cash and your tolerance for risk. Some clients hold none. Each thesis, including what would make us wrong, is on our investment theses page.
Do you work with clients outside California?
We are registered with the State of California and work with clients across the state. We can also work with clients in other states where we are registered or exempt from registration, which depends on the state and on how many clients we have there. Ask us about your state and we will tell you plainly.
Do you prepare taxes or draft wills and trusts?
No. We manage investments and coordinate the plan; your accountant prepares your returns and your attorney drafts your documents. With your permission we work alongside them, so the accounts match the plan they wrote. If you do not have one, we can tell you who we have worked well with, and we are not paid for the introduction.
How do I see my accounts?
Through Schwab. You log in to your accounts on Schwab’s client site, where every holding, statement and tax form is available. There is a Client login link at the foot of every page of this site.
Can I leave if it is not working?
Yes. You can end the advisory agreement by written notice under its terms. Because your accounts are already in your name at Schwab, there is nothing to move out of our hands: you keep the accounts, and our trading authority ends.
Where can I read your Form ADV?
Our Form ADV Part 2A brochure describes our services, fees, conflicts of interest and disciplinary history. We give it to every client before they sign and offer it every year after, and anyone may ask for a copy, free of charge, at contact@inherentwealthfund.com or (415) 692-0863.
Still have a question? Schedule a conversation, or call (415) 692-0863.