It's
Your Money!
Who has control of your money? You do. We are just
your advisors. Here is how the mechanics work. You
will use a financial custodian to hold your funds.
You will open a brokerage account with a custodian.
Typically we use Charles Schwab, Inc. It is your
account, not ours. You will get a statement from
Schwab every month. Because you are our client,
you will get a special discount on Schwab mutual
fund trading commissions. We receive the lowest
transaction cost available to institutional advisors.
We pass the savings on to you.
We
Can't Touch Your Money
CAM never touches your money. You cannot send us
money, stock certificates or other securities. We
cannot even deposit them into your account at Schwab.
You must move your funds from their present location
to your new Schwab account. We will help. It can
be done electronically in most cases.
You
Give Us Certain Revocable Permissions
We will have the following permissions from you
regarding the Schwab account:
1. We will receive a copy of your Schwab statement.
2. We will submit our advisory bill to Schwab who
will pay it from your account. (We get one check
per quarter from Schwab for all our client fees.)
3. We will have discretion to trade your account.
This means we can buy and sell securities in your
account. However, we only buy and sell according
to our agreed upon portfolio design plan.
We will buy and sell to accomplish
the following:
1. To implement your initial portfolio.
2. To keep your portfolio "balanced." For example,
if you have a certain percentage or weight in a
specific position as a result of changes in all
your investments, you may wind up having a higher
weighting than the design calls for. If the amount
exceeds certain parameters, in this example, we
would sell a portion of that position, and buy something
else which was under-weighted in order to bring
you back to the portfolio design objectives.
These permissions can be
revoked by you with a phone call.
