Frequently Asked Questions

Prospective Clients

What is a fee-only financial advisor? The financial services industry is replete with professionals who get paid in many different manners. Many of them are paid on commission for selling you products. "Fee-Only" means that we only get paid by you for performing work based on your individual needs. We do not receive commissions of any sort or referral fees from anyone for directing you towards any product or service. Our compensation is arranged so that we can provide the most objective advice for you personally. Please see below for more information about our fee structure.

What types of payment (fee) arrangements do you make with your clients? We prefer to work on an "assets under management" basis but from time to time we will provide consulting on an individual project basis for an hourly fee. Working on an "assets under management" basis means that we take a yearly fee of .5 to 1.5% of the investment assets that we manage for you as our compensation. Clients who choose this method receive comprehensive financial planning at no additional charge (the investment management fees cover our other services).

Occasionally our clients have a need to discuss a financial issue that does not typically fall within the basic financial planning sphere. This may involve something like setting up a small business, what structure is best, what retirement plans are available to small businesses, or what the most tax efficient methods of getting money out of your small business are. In those instances we are happy to provide consulting services on an hourly basis (typically $150/hr). Please contact us if you would like to discuss a project like this.

How does this "assets under management" thing work anyways? Well, it's pretty simple really. You may have assets presently in lots of different types of accounts. You may have Traditional or Roth IRAs, SEP IRAs, regular taxable brokerage accounts, and several other types of accounts. If you decide to let us manage some or all of your assets then we would establish congruent accounts for you at our account custodian (see below). We then help you transfer your assets from your existing accounts into the new accounts so that we can begin managing your money for you.

After discussing your risk tolerance and financial goals we then sit down with you and establish an investment policy statement. This is a statement that clarifies that we are on the same page concerning the types of assets and investment mix you are comfortable with. We then manage your money (we do all the trading, etc.) in accordance with your investment policy statement. Our fees are based upon the amount of assets you allow us to manage and are deducted from your accounts on a quarterly basis.

Do you have to manage all of my money? No we do not but we would prefer to. The reason is simple. We believe in diversifying across many different asset classes and prepare your investment allocation accordingly. If you have assets with several different advisors (or in several different locations) then you may end up having too much exposure in a given investment area without really knowing it. The advisors may be duplicating effort. It is just more efficient to have one central location for monitoring your investment mix and rebalancing it when necessary. Having too many "chiefs" may mean additional fees and inefficiencies that hurt you more than the diversification benefits help. We would be happy to consult with you about this delicate matter personally if you have any further questions.

Do you manage 401(k) or 529 plan money? Unfortunately the structures of those types of accounts make it impossible for us to have discretionary authority over them so we cannot truly "manage" the money in those accounts. Having said that, one of the value added services we provide our clients is to review the investment options in those types of accounts and help them make solid investment decisions for the money they do have in those types of plans. Where possible we will try to factor qualified plan investments into the asset allocation strategy of the client. (This can be difficult so it is not always possible.)

Who holds my accounts? Can you take money out of them? Our account custodian is Shareholders Service Group (SSG). SSG provides brokerage and custody services for independent financial advisors like Black Swan Financial. All trading and clearing is done through a company called Pershing LLC, an affiliate of the Bank of New York. Pershing is one of the world's largest clearing service providers. Both SSG and Pershing strive to maintain the utmost professional integrity and their services are top quality. If you would like to inquire further about custodial services please drop us a note and we'd be happy to provide you with more information.

As a "custodian" SSG holds all your account funds and securities. Black Swan Financial does not have the authority to withdraw funds from any of your accounts. We simply have discretionary trading authority within the account itself. You will sign a consent form for SSG and Black Swan to debit your account for our quarterly management fee but that is the only way by which we can obtain funds from your account. You (and SSG) will be sent an invoice each quarter detailing the funds to be debited and the calculations that were made to determine the amount.

Will you work with my existing accountant or attorney? Most definitely. We consider ourselves a "Financial Quarterback". That means we would like to get a holistic idea about your finances and then help all the advisors in your circle prepare a plan that will help you to meet your goals. If that involves consulting with your attorney about estate planning issues or speaking to your accountant about tax situations and cash flow issues we can help direct traffic and make sure everyone is on the same page. We understand that it is necessary to have competent professionals in many areas as part of your team and we are willing to work with them to the best of our abilities.

Do you provide comprehensive Estate Planning services? We are not licensed attorneys and therefore cannot provide services that are considered to be "giving legal advice". This includes preparing legal documents like wills or powers of attorney and/or advising you on legal issues regarding those types of documents. That being said, we do have a working knowledge of the estate planning issues that are important to our clients and we can offer you advice of a general nature when reviewing your plan. We can also work with your estate planning attorney (or recommend one) to make sure that the plan that gets put in place helps to accomplish all of the financial goals we establish with you.

Existing Clients

Where can I view my accounts? You can login to your accounts at SSG here: Client Login

How do I get access to your Form ADV or ADV Part II (Disclosure Statement)? For the time being simply send us an email with your request and we will send you the most recent version of those documents. In the future you will be able to login to the Black Swan website and download these documents.

When do I get my account statements and who sends them? As your account custodian, SSG is responsible for sending you your account statements on a quarterly basis. If you are having trouble with this please contact us and we will help you get the issue resolved.