We believe that individual and corporate investors should have the opportunity to receive objective investment advice from independent advisors who do not make recommendations based on compensations or incentives sponsored by the financial community.
We believe that our client's needs must come first. We acknowledge that we have an obligation to you to provide high standards of technical competence, morality, and integrity. We are professionals, and our relationship with you, the client, is a professional one.
Wealth Management is discussed further in our web site. Simply stated, we manage your wealth while helping you find the resources and advice you need to make informed financial decisions. Your assets are domiciled at TD Ameritrade and we direct and manage the investment objectives and goals to which we have mutually agreed. Within Wealth Management you receive: Investment Planning, Investment Management, Integrated Comprehensive Fee-Based Financial Planning, Family Coaching and Counseling, Planned Giving and Philanthropy, and Trust Services.
Portfolio Construction and Asset Management is the heart of our business. We interview you and ask you to complete an investment questionnaire. Our number one goal is to achieve an investment return that you need. This may well be different than what you initially thought you wanted. We believe it is incumbent upon us to help you understand the overwhelming importance of preservation of capital through prudent and proven investment strategies. Unfortunately, many amateur investors frequently defeat their own goals by letting ego dictate strategy.
We prepare an Investment Policy Statement (IPS) for you. The IPS defines the goals, objectives, time horizon, income needs, and comparison benchmarks against which to judge performance. The IPS changes over time just as your financial situations change.
We create and manage portfolios for individuals, trusts, and closely held businesses by employing several investment approaches. While we do some individual stock selection, our focus is on Dimensional Funds (DFA). After years of investment management and exposure to virtually every investment style, we believe that the DFA approach is prudent and proper for nearly every investor. Click here for more information on DFA funds.
Dimensional Fund Advisors (DFA)
Schulmerich & Associates Asset Management uses TD Ameritrade as our custodian to hold all the client assets that we manage. Through TD Ameritrade, our client’s portfolios have access to thousands of investment vehicles including stocks, mutual funds and bonds. In making our choices, we are well aware that more than 90% of mutual fund managers under perform the benchmark indices they strive to meet or beat. For individual investors, the historical returns are even less than the 12,000 professionally mismanaged “beat the market” funds.
A well-informed and educated investor understands that trying to beat the market is an ego thing. If the overwhelming number of professionals can’t do it, what should part-time, under-informed investors expect? The answer is they should expect even less return.
DFA philosophy is: Markets are efficient, and risk and return are related.
Dimensional Funds are different than conventional mutual or index funds. Dimensional Funds have created their own indices that are designed to capture the returns of a specific asset class, whereas index funds merely replicate traditional market indices. Dimensional Board members include some of the nation’s most distinguished and recognized academicians, including the Nobel Laureate economists Myron Scholes and Merton Miller. Our role, as advisors, is to provide clients a successful investment experience. To that end, we employ DFA mutual funds.
Dimensional Fund Advisors is an $195.3 billion family of funds designed to meet the needs of professional investors at low cost. Investors utilize DFA funds through a select group of approved, fee-only advisors, and a Who’s Who of over 200 public, corporate, Taft-Hartley, and nonprofit organizations. These include the Maryland State Retirement System, California Public Employees Retirement System, Citigroup, Pepsi, Pfizer, Cornell University, and the Salvation Army.
Schulmerich & Associates Asset Management is one of these select fee-only advisors. We receive no financial support from DFA or commissions. Our role is combining various asset classes into a balanced portfolio based on understanding our clients risk preferences, tax affairs, family desires, and lifetime financial objectives. The relationship between Dimensional and Schulmerich & Associates Asset Management reflects our shared views about how capital markets work and how best to provide clients with a successful investment experience.
Dimensional has 75 value-added funds that we incorporate into asset allocation strategies designed specifically for each client. These strategies have outperformed their benchmarks. DFA funds have provided these increased returns through innovative trading strategies, low turnover, low expenses, and portfolio engineering.
The managing principal of the team is Stephen C. Schulmerich, CFP. Mr. Schulmerich is currently a Certified Financial Planner with the Certified Board of Standards and is also a graduate of the College of Financial Planning Institute in Denver, Colorado. Mr. Schulmerich has been certified as an Accredited Investment Fiduciary AIF®. Assisting Mr. Schulmerich are two administrative individuals qualified in their specialties. Craig Schulmerich runs the back office network and website support and also provides customer service on a daily basis. Craig Schulmerich graduated from the University of Phoenix in Business Finance. Sharon Schulmerich is our office manager with main responsibilities in processing applications and daily customer service. Heather Tolman helps Craig Schulmerich with customer service and back office processing and graduated from the University of Oregon.
We are a fee based Registered Investment Advisory Firm, specializing in Fee Asset Management and Fee for Service Financial Planning. Schulmerich & Associates, LLC is an independent firm, and our independence allows us to be sure our client's needs always come first.
Our core program is based on modern portfolio theory (MPT), an approach that has been used by institutional investors and large qualified plans for many years. Three major contributors to MPT were awarded the 1990 Nobel Prize in Economic Science. With advances in computer technology we are now able to apply the principals of MPT to benefit individual investors as well as qualified plans.
Schulmerich & Associates, LLC structures portfolios to meet your financial objectives. With your input, we will provide an Investment Policy Statement, which states your investment objectives. Institutional Asset Class Funds represent specific market segments and are used as tools to achieve effective diversification. The benefits are low trading costs, low turnover, and reduced risk.
Every Investor has a unique financial objective and risk tolerance levels. An efficient portfolio is one designed to provide the highest expected return * for a chosen level of risk.
* Expected return is a calculation based on certain assumptions and historical information. It is not a projection of future results.
Certified Financial Planner
Stephen C. Schulmerich, CFP
As a Certified Financial Planner ™ professional, Stephen met the rigorous professional and ethical requirements of the Certified Financial Board of Standards. To qualify he successfully completed coursework and passed certification examinations in the following areas: the financial planning process, risk management, investments, tax planning and management, retirement and employee benefits. Mr. Schulmerich is licensed to provide Investment advice, health, and life insurance products. He continues to actively pursue advanced professional designations that benefit his clients.