500 Newport Center Drive, Suite 500
Newport Beach, CA 92660
Phone: (949) 721-2330
Fax: (949) 721-0734
540 University Avenue, Suite 300
Palo Alto, CA 94301
Phone: (650) 326-2274
Fax: (650) 326-4474
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October 2008 Uncertain
Times
October 2008
Laura Tarbox
Worth Magazine's Top 250
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WEALTH MANAGEMENT SERVICES
INVESTMENT MANAGEMENT SERVICES
FEES
WEALTH MANAGEMENT SERVICES
Wealth management and financial planning are an integral part of our service offering, and the process begins with our first meeting. During the first meeting, we will answer any questions you may have about us or about how we work with our clients. We will then gather general information about your present situation and goals, and discuss what you would like to accomplish. This initial information gathering session will normally last one to two hours, and will usually involve two planners from our staff. We encourage you to include your spouse or partner in this and all meetings, if appropriate.
If we mutually decide that our services are a good fit, we will schedule a sign-up meeting to complete some initial paperwork, including a Client Agreement and Investment Policy Statement.
In addition to making sure that your specific needs are met in the areas of cash flow, risk management and tax planning, our process helps to ensure that we construct an investment portfolio that is aligned with your short and long-term goals.
A key component of the planning process is usually a retirement or "financial independence" needs analysis. If you are still working, are you on track to meet your retirement goals? If you are already retired or financially independent, how much can you spend (or give away) each year? We will ensure that you have a comprehensive estate plan in place to make sure that your assets are ultimately distributed according to your wishes, while minimizing the impact of any potential estate taxes. Charitable gifting and planning can also be implemented where appropriate.
THE END RESULT
Based on your family's specific needs and goals, we will work with you on an ongoing basis to provide:
- Focus on long-term goals
- Coordination of multi-generational financial and estate planning
- Access to a network of quality professionals and services
- Assistance with significant financial transactions
- Consolidation and simplification of accounts and reporting
- Personal services that extend beyond financial matters
Our goal is to provide clear, ongoing, objective advice and to present various alternative courses of action that will make a significant positive difference in your financial life. We aim to simplify the management of your financial affairs. We are confident that you will be pleased with the results.
INVESTMENT MANAGEMENT SERVICES
We review your current investments, tax situation, income needs, and goals. We work with you to establish an Investment Policy Statement that sets the parameters and target asset allocation under which your accounts will be individually managed. Tax consequences are taken into consideration and detailed cost basis information is tracked on positions transferred to us. We attempt to balance your taxable and tax-deferred accounts with the most appropriate types of investments.
We use individual securities (stocks and bonds), exchange-traded funds (ETFs), and no-load or load-waived mutual funds in the accounts that we manage. We usually employ a dollar-cost-averaging approach to investing new money in the market. Most of our accounts are custodied at Charles Schwab Institutional. Through our affiliation with Schwab's institutional division, you benefit from access to institutional products, services, and rates.
When you become our client, one of the documents required is a limited power of attorney giving us authorization to make trades, receive electronic information on your account, send payments to you, and deduct our quarterly management fee. This allows us to manage your accounts with a focus on maximizing returns and minimizing costs by taking advantage of block trading, buying on downturns and selling on upturns, etc. Thus, we will not call you prior to making trades. Keep in mind that our power of attorney is "limited"; you always control your accounts - we can't withdraw funds or have money sent from your account (other than to you) without your authorization.
The custodian will send confirmations for trades as they occur, as well as monthly statements of activity. You can also have online access to view your accounts. Tarbox Group, Inc. will send quarterly reports, year-end tax reports, and occasional write-ups of rationale for purchases or sales. Our quarterly reports show a time-weighted rate of return on both a "year-to-date" and "from inception" basis, net of fees. We bill in arrears, so you don't pay for any services you haven't received.
We also provide our clients access to alternative investments, where appropriate, and provide coordination and oversight of all investment assets not managed by our firm.
THE END RESULT
Our goal is not to beat a particular index - it's to meet or exceed each client's mutually agreed upon required or targeted rate of return. We have an interest in seeing your account grow. If you make more money, we make more money.
We aim to simplify your life, provide you with greater peace of mind, and achieve the returns you need to meet your financial goals over the long term.
FEES
Because each of our clients has a unique situation, fees are quoted on an individual basis, after an initial meeting. Generally, fees will range from 0.50% to 1.00%, and will be based on investable assets or total net worth, depending upon services required. Minimum account size for investment management is $5,000,000. Minimum annual fee is $40,000.