Frequently Asked Questions
FAQs
These are some of the most common questions I have received over the years. If yours isn't on the list, please send it with the form below and I'll respond shortly.
Oak Street Investments
Are you accepting new clients?
Yes!
That said, we do limit our new clients to 1 to 2 per month to ensure quality and a consistent onboarding process. This means that from time to time we may have a short waitlist. If this is the case, this will be clearly noted on our homepage.
Tell me about your investment philosophy.
My investment philosophy is based on risk-targeted, evidence-based principles designed to compensate clients for the risk they accept in their portfolio. We measure risk using software exclusively designed to quantify the level of risk a client is willing to take.
I believe that markets are, for the most part, efficient and do not believe in trying to "beat" or "time" the market. I focus clients on proper diversification, asset location, regular rebalancing, and building tax-efficient, low-cost investment strategies for long-term investing.
Portfolios tilt toward value (stocks on sale) over growth (fast-growing stocks) with meaningful allocations to international equities and higher profitability companies.
The non-equity (read: bonds, alternative asset classes, etc) portion of portfolios is allocated based on a number of factors that can change based on market dynamics, but may be allocated to individual Treasuries, TIPS, high-yield and corporate bonds, CDs and some actively managed mutual funds, among other things.
I invite you to learn more about my investment philosophy here. (This primarily speaks to the equity/stock side of my philosophy).
What does your typical client look like?
While I specialize in working with technology and healthcare professionals, I work with clients from a variety of backgrounds.
Where do you meet with clients?
While the majority of our meetings are held via web-based software, we’re also happy to meet with our clients, by appointment, at our office in Greenwood Village, Colorado. If, due to health or other factors a client is unable to travel, we will meet our clients at their home, though this is done on an exception and as-neeeded basis. On occasion, we can conduct meetings via telephone only, though this is not ideal for the majority of client meetings.
Do you have clients like me?
I don't know, we haven't met!
Joking aside, I specialize in working with professionals in the technology and healthcare space. Additionally, I have a number of clients who own their own businesses.
If I don't feel I'll be able to serve you based on my areas of specialization, I'm happy to refer you to someone who has a different area of expertise.
Fee Questions
What Are Your Fees?
Please click here to view our fees.
Why do you charge a flat fee?
It's really fairly simple: it's a win-win structure for clients and the firm. In early 2019, recognizing that I was spending roughly the same amount of time working with clients with $2MM as those with $500K, I began transitioning the firm to a flat-fee model.
By using a flat fee for the majority of clients, I get to build the firm exactly as I want, support my family, and provide a top-notch, highly customized client experience in a transparent, ethical way (fee-only) without charging high-net-worth clients tens of thousands of dollars per year.
Why Do Other Advisors Charge Differently?
Even within the small population of Fee-Only advisors in which we operate (e.g., those who accept compensation directly and only from their clients- no commissions, referral fees, mutual fund loads, etc) there are multiple fee structures permitted.
I don't believe one method of charging is necessarily better than another within the fee-only space as it depends on client needs.
A client looking for a specific product such as a term or whole life, disability or long-term care policy should expect to pay differently than someone looking for help with asset allocation or financial planning.
As we don't sell products (no commissions), and we don't spend our time worrying about daily market fluctuations (learn more about our investment philosophy here) we believe we're charging appropriately for the services we provide.
Why do you charge an AUM fee over a certain threshold?
Great question! When I first launched the flat-fee model in 2019, I did not have any aum-based fees. A client with 400K would pay the same as a client with $4MM or $40MM (though I had none of those). As my business grew and I worked with an increasing number of higher-net-worth clients, I realized that, while there is a lot of overlap in working with a client with $400K or $4MM, a client with $4MM usually has more accounts (and more paperwork), has more financial planning complexities, a more complex tax situation and tax forms, and in general, requires more of my time. Not 10x more time than a $400K, but more.
I believe this model is both competitive and beneficial for all clients with over $500K of assets to manage.
Can You Change My Fees?
Yes, though not without your written approval.
To formalize our working relationship, you'll sign a client engagement agreement that lists the fees for the engagement. Any modification would require an amendment to this agreement.
We will review signed client agreements every year to determine whether adjustments are needed based on your financial situation, technology costs, services provided and time to provide them, inflation, and other non-discriminatory factors.
Why Do You Charge Fees in Advance?
Charging fees in advance of services to be performed is a standard and permitted practice within many industries.
While firms are permitted to charge in arrears or in advance, they may not accept compensation of $500 or more for services not to be performed for over 6 months as this triggers custody rules.
More information regarding fee assessments, payments and refunds for terminated engagements can be found in our client engagement agreement or ADV Part 2.
General Advisory Questions
When Should I Call a Financial Advisor?
Oftentimes people look to us when they:
- Outgrow the do-it-yourself mentality
- Don't have the time or expertise to manage the complexities of their financial live
- Recognize the difference between a Fee-Only advisor and who they're currently working with
- Have a triggering life event: marriage, baby, divorce, business sale, new job, job transfer, etc.
Do I Need a Financial Advisor?
Our experience is that people who don't work with a financial professional may be saving a little bit of money, but are typically doing so at their own expense. While some of the things we do can be quantified (i.e. saving you $8200 on taxes by recognizing gains this year instead of next), others are more nuanced or simply not quantifiable.
Here are some of the things a professional should help with:
- Centralize your financial life - Serve as your centralized contact for your team - accountant, attorney, insurance advisor, etc. If you don't have one, we can make an introduction (we do not accept referral fees)
- Clarifying your objectives and creating a plan to help you reach them
- Provide you with ongoing guidance and confidence to help you reach your goals
- Adjusting your plan as your life inevitably changes
- Evaluating the consequences of various financial decisions
- Identifying potentially missed taxed breaks
- Ensuring you're not under-insured or have gaps that could hinder your ability to meet your objectives
- Assist with estate planning and making sure your documentation is in order
- Plan for tax-efficient methods of charitable giving or gifting strategies to non-profits or family
- Invest according to your targeted risk tolerance
- Investing with a disciplined, long-term focus
- Lowering expenses of your investment portfolios
- Improving your asset allocation to better reflect your goals
- A partner to join you in your financial journey
What is a “Fee-Only” Financial Advisor?
“Fee-Only” refers to how an advisor/planner/wealth manager is compensated. Specifically, a fee-only advisor cannot accept commissions, referral fees, or any compensation from anyone other than their client. While the standard industry practice of receiving commissions for the sale of a given product may seem like a benefit to the client who doesn't need to directly pay the advisor, it can make it difficult to discern the reason for the product recommendation and implementation.
What is a Registered Investment Advisor?
Registered Investment Advisors is a firm engaged in the investment advisory business and registered with the SEC or state securities authority. RIAs have a fiduciary duty to their clients, which means they have an obligation to place their clients' interests first, even ahead of their own.
A Registered Investment Advisor (RIA) is defined by The Investment Advisers Act of 1940 as a "person or firm that, for compensation, is engaged in the act of providing advice, making recommendations, issuing reports or furnishing analyses on securities, either directly or through publications."
What's the difference between a Broker, Registered Representative and an Investment Advisor Representative?
We're going to jump into the weeds here a bit to highlight an important distinction and what it means to you. For a reader friendly version, please see our blog-post here.
According to FINRA (regulatory agency) "While many people use the word broker generically to describe someone who handles stock transactions, the legal definition is somewhat different—and worth knowing. A broker-dealer is a person or company that is in the business of buying and selling securities—stocks, bonds, mutual funds, and certain other investment products—on behalf of its customers (as broker), for its own account (as dealer), or both. Individuals who work for broker-dealers—the sales personnel whom most people call brokers—are technically known as registered representatives."
Investment Advisors/Advisers (see Above question for clarification on spelling), according to FINRA is: "...an individual or company who is paid for providing advice about securities to their clients. Although the terms sound similar, investment advisers are not the same as financial advisors and should not be confused. The term financial advisor is a generic term that usually refers to a broker (or, to use the technical term, a registered representative). By contrast, the term investment adviser is a legal term that refers to an individual or company that is registered as such with either the Securities and Exchange Commission or a state securities regulator. Common names for investment advisers include asset managers, investment counselors, investment managers, portfolio managers, and wealth managers. Investment adviser representatives are individuals who work for and give advice on behalf of registered investment advisers.
What is a CFP® and Why Should I Care?
A Certified Financial Planner™ or CFP® has met or exceeded stringent guidelines set forth by the CFP Board. To become certified, a candidate must meet requirements for education (both course education and have a bachelors degree), pass a comprehensive, 2 day 10 hour exam, exhibited 6,000 hours of verified experience, and agree to adhere to the high standards of ethics and practice outlined in CFP Board’s Standards of Professional Conduct. Principal Topics to demonstrate proficiency and covered on the exam are:
- Professional Conduct and Regulation
- General Principles of Financial Planning
- Education Planning
- Risk Management and Insurance Planning
- Investment Planning
- Tax Planning
- Retirement Savings and Income Planning
- Estate Planning
To learn more Click Here.
What Questions Can I Answer for You?
If there are questions we didn't answer above, please use the form below to reach out. I'm looking forward to connecting with you.