Choice Financial Strategies, LLC

Who Can Benefit?

Portfolio management services are provided for those people who are looking for an industry professional to manage their investment portfolio.  Typically these clients don't feel they have the time, energy or industry knowledge to manage their portfolio on their own, or it is just something they would prefer to have someone else handle. 

Services Included

As with financial advising, portfolio management services begin with a no-charge, no obligation “get acquainted” meeting, where you can discuss your current situation, questions and concerns.  At the end of the meeting, if it appears you could benefit from these services your advisor will make recommendations on how to proceed, and also will provide you with an estimate of total costs.

In order to begin the services, you will need to open an account with a custodian of your choice (Charles Schwab, TD Ameritrade, E*Trade, etc.), or if you prefer your advisor can recommend a custodian for you.  The funds intended for management should be deposited into this account, and you will need to complete the appropriate paperwork to grant your advisor discretionary authority on the account.  Discretionary authority allows your advisor access to the account to place trades without your prior consent -- in other words, you do not have to give approval for every transaction in the account.  It does NOT grant the advisor access to your funds for any other purpose, and no amount can be withdrawn from the account without your approval.  All funds remain in your sole ownership and custody, you are simply granting your advisor access for management purposes.

With your advisor's help you will also create an Investment Policy Statement which outlines your investment goals, objectives, risk tolerance, and time frame.  Your advisor will use this information to determine which investments are appropriate for you in the management of your account.  Through this process your investment holdings will be tailored to your unique situation.

You will receive monthly statements from your chosen custodian detailing account transactions and current holdings.  In addition, CFS will send you quarterly statements outlining current asset allocation, investment performance, and transaction details.

Portfolio Management Fees

Portfolio management fees are set as a percentage of total assets under management according to the scale below.

Less than $100,000 = 1.00%

$100,000-$499,999 = 0.80%

$500,000 or more = 0.60%

While there is no minimum account balance required, there is minimum annual fee of $200 (equivalent to a $20,000 account balance).  For example, a client with an account balance of $10,000 will be charge $200 annually, while a client with an account balance of $70,000 would be charged $700 annually.    

The first bill will be sent once the account is opened and the funds are deposited.  The amount will be based on the total amount deposited in the account, prorated for the amount of time left in the current quarter. 

From this point on, fees are billed in advance on a quarterly basis based on the market value of the account at the end of the preceding quarter, excluding cash equivalents. Unearned fees are reimbursed on a prorated basis if you choose to terminate the service prior to the end of the calendar quarter. You may terminate the service at any time without penalty.