FEE BASED SERVICES:
We use structured index funds that are no load funds through TD Ameritrade. Please see prospectus for funds fees and expenses.
We provide extensive financial planning services, which include a complete analysis of your financial objectives. This analysis may include your present financial position, retirement planning, estate planning, tax planning and investment and risk management planning.
As a financial planner I will suggest general approaches to assist you in bringing your financial activities more in line with your objectives. I am professional and my relationship with you, the client, is a professional one. When appropriate, I will work with your other professionals who advise you, such as your attorney and your accountant. Their input is important to execute your financial plans.
Our fees are based on assets under managment, but we can work on an hourly basis for certain financial planning services. Retirement Planning Analysis is free for accounts over $250,000.
Financial planning services are advisory in nature and no discretionary powers are granted to Schulmerich & Associates or any representative of the company.
GENERAL ONGOING FINANCIAL ADVISORY SERVICES
We offer ongoing financial advisory services to clients under a Continuing Service Contract. Under this contract we will provide advisory and review services for financial products you wish us to follow for you, including equities, fixed income securities, insurance and annuity products, real estate, natural resources and IRA accounts.
If you have signed a Telephone Exchange or are a TD Ameritrade client Schulmerich & Associates will have the discretion to allocate accounts. This account is a discretionary account. We may utilize existing assets or may recommend changes in your portfolio based on our asset allocation formula, but the final decision is yours to decide if you wish to execute our recommended changes.
Our fees for these services are based on a percent of the total value of the financial assets you wish us to supervise or monitor. The annual percentage fee applicable to these accounts is:
Annual Fee Schedule Per Account
First $500,000 1.0%
Next $500,000 .75%
Next $1,000,000 .50%
Over $5,000,000 Will negotiate fee.
Minimum account size is $100,000.00
Mutual fund expense charges are in addition to the fees above. Please see fund company prospectus for more information on fund expenses. For more infomration about fund expenses please visit Dimensional Funds Website at http://www.dfaus.com/
*The minimum fee for general ongoing financial advisory services is $ 200.00 annually.
The Advisor will be paid in arrears quarterly. Quarterly fees shall be based on the Account’s market value as of the close of business on the last business day of the quarter. Accounts opened or closed during the quarter will not be prorated. The advisor, Mr. Schulmerich reserves the right to reduce management fees on any account at his discretion. Fees are negotiable based upon complexity, size of account, and our referral program. Mr. Schulmerich reserves the right to reduce the fee by 25 basis points for those accounts weighted more then 40% in bonds on the first $500,000. On Insurance products we do receive commissions.
Why hire an advisor!
1. Just like other competitive fields in which professionals dominate, the amateur investor is not likely to enjoy success. The study above confirms this point. The average amateur investor only gets 18% of the overall market returns and only 16% of the DFA mix of indexes. This is due to their lack of knowledge about how risk and return are related. There is also an emotional bias that forces investors to avoid risk instead of buying and holding the proper amount of risk. The advisors at Schulmerich & Associates are professionals who have invested years of research and study into modern portfolio theory. The content and design of this website provides the most comprehensive presentation of investment information available for the purpose of educating the prospective Schulmerich & Associates client. Current academic research on financial markets is constantly applied to our clients' investments. The majority of investors do not have the resources, time or interest to do this.
2. Our fee may be considered a casualty insurance premium with our role being to protect investors and their capital from themselves. As Benjamin Graham (1894-1976), the legendary American investor, scholar, Warren Buffet mentor, teacher and co-author of the 1934 classic, Security Analysis, stated, "The investor’s chief problem - and even his worst enemy - is likely to be himself." According to behavioral finance author and professor, Mier Statman, "When the market drops, our instinctive fear to flight is so strong, even the most rational investors find themselves caving in to their own demise." Schulmerich & Associates takes the emotions out of the decision making process.
3. The main concern with amateur investors is that they do not know the facts about the financial markets. This is clearly demonstrated by survey after survey. In a recent one by Money Magazine, the average score of 1,500 investors on twenty basic financial questions was a mere 37% correct. You will pay a high tuition for your lessons if you do not understand the potential risk exposure of the stock market and the efficient market theory. Amateur investors suffer from emotional swings of irrational exuberance for risk and subsequent irrational avoidance of risk. Remember that every trade, mutual fund, or stock has someone on the other side that probably knows more than you. Nearly 80% of trading volume is handled by professionals. The alarming fact is that many of these "professionals" have little understanding about the way the market works. In two different studies of ten-year periods, 97% of stock pickers and 100% of market timers under performed a simple index fund. Investment policy is the only thing that matters. Schulmerich & Associates will create, maintain, and add discipline to that investment policy. We act as your Chief Financial Officer and coordinate your financial management team of accountants and insurance agents.
4. Schulmerich & Associates provides extensive investor education and access to low cost, pure style, customized, and risk concentrated institutional index funds. These funds are not available to amateur investors. DFA is offered to approved advisors only. They are building blocks of risk, offering worldwide diversification in the risk factors that explain virtually all of stock market return levels.
5. We have a very high level of customer service and contact due to our implementation of technology. Our team will provide the highest level of service to maintain your trust and confidence.
6. Schulmerich & Associates will provide additional annual reviews of the performance and rebalance status of your accounts. We maintain our own portfolio management software that provides virtually any type of analysis of your investments.
7. Schulmerich & Associates will monitor the balance of your current portfolio compared to the investment policy target portfolio and insure that your risk exposure is kept constant. We provide the complicated process of rebalancing the portfolio, minimizing trading costs and taxes, and maintaining investment policy. The time, computer hardware and software, data maintenance, and expertise are of significant value to our clients.
8. Schulmerich & Associates provides the opportunity for you to spend your precious time on endeavors of interest to you instead of worrying about your investments. We want you to be well educated about the way the market works, allowing you to relax and enjoy the investment process even in times of market declines.
9. Finally, this quote is important to remember when deciding on whether you should hire Schulmerich & Associates. "It is unwise to pay too much, but it's worse to pay too little." - John Ruskin (1819-1900)