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Select a financial advisor that can support your life and investment plan. The investment process is complicated and
requires strict discipline without emotion. You should always seek professional advice unless you receive the proper training,
invest in the tools and are willing to put the time into managing your portfolio.
Your portfolio is designed to meet your goals, risk tolerance and time horizon. Our portfolios are designed with no-load mutual funds and
stocks with strong management, sound investment strategies, strong and consistent performance and high risk-adjusted returns. We use an
allocation of diversified and focused sector investments, tactical and asset class allocation, fundamental and technical analysis, growth
and value, large and small companies.
Your assets are held in your brokerage account for transparency and your safety. You can always see where your money is invested.
We recommend that your account be held by a strong, honest and low cost custodian like Scottrade, Charles Schwab, Fidelity or TD
Ameritrade.
We provide independent advice in an open architecture. Open architecture means you are not limited to a defined set of funds and stocks.
Investments are liquid, consisting of stocks and mutual funds that are easy to sell to raise cash. We drive low cost by recommending
discount brokers and charge clients a portfolio management fee. We use strong investment strategies, pro-investor structure and have
management ownership, integrity, a passion for investing and strong customer service. Most advanced strategy advisors require a $500,000
to $1,000,000 minimum investment. Our mutual fund strategy can be deployed with as little as $50,000 and our stock strategy with
$200,000.
Most investors find it difficult to implement and maintain an asset allocation strategy, reducing the likelihood of investment success
on their own. We will perform the trades to align and maintain your portfolio with your defined investment plan. Implementing a new
strategy requires awareness of fund minimums and calculating dollar amounts for each allocation before purchase. During implementation,
we spread out our sales and purchases over two to four weeks to take advantage of strong and weak market days. Some of the advantages
of hiring an advisor are listed below.
- We have the Training, Tools, Discipline and Time
- Professional Portfolio Design with Strategic Asset Allocation
- Efficient Portfolio Implementation with Re-Balancing
- Investment Plan with a Consistent Strategy
- Portfolio Asset Allocation Tracking
- Portfolio Performance Tracking
- Quarterly Reports (Portfolio Holdings, Asset Allocation & Performance)
- Annual Tax Summary for Taxable Accounts
- Discipline and Timely Execution of Trades
- Emotional Guidance During Bubbles and Bear Markets
- Free Focused Growth Investor newsletter ($120 per year value)
PDM Investment Services will help you develop and support a written long-term investment plan to guide you to meet
your retirement goals and provide support to a surviving spouse. The elements of a wealth plan are listed below.
- Goals, Time Horizon and Risk Tolerance
- Career Income
- Spending Plan
- Savings Plan
- Debt Reduction Plan
- Investment Plan
- Total Wealth Plan, Current investment worth
- Total Wealth Plan, Future investment worth
- Retirement Spending Plan
- Investment Education
When you leave your job, you typically have the option of keeping your investments in the current 401 (k),
transferring them to your new 401 (k), or rolling them over into an IRA. Rolling over into an IRA is almost always the best
option. A rollover gives you more control over your investments, more investment options, access to higher rated mutual
funds and access to sector funds, ETFs and individual stocks.
We will design the optimal asset allocation for your new IRA to meet your long-term retirement goals, manage
your portfolio and guide you through the process.
If you work for a cyclical company and are purchasing company stock on a regular basis, you must have a
management program that sells stock as the economic cycle matures. The last thing you want to do is hold all
your accumulated shares and watch them go up and down in each economic cycle, producing limited long-term gains. As you
continue to buy shares, you will accumulate shares at lower prices. These new shares can be sold during the next capital
goods stage. Buy cyclical companies during recessions and sell them during the capital goods stage before the next recession.
You should never let your company stock value exceed 10% of your total portfolio holdings. Enron employees saw their stock
plummet and they lost their jobs at the same time.
PDM Investment Services can help you manage the sale of accumulated shares in sync with economic cycles to optimize returns.
The economic cycle, fundamental analysis, technical analysis and taxes are all considered for each sale.
Portfolio Management, 401 (k) to IRA Rollover
Advisory fees for Portfolio Management are based on a percentage of assets under management. Fees are payable on a
quarterly basis after each quarter. The fee is based on the market value of the assets under management at the beginning of the
quarter. The client is responsible for brokerage transaction fees and any other charges incurred by the custodian on the client’s
behalf. For portfolios containing stocks, add an additional 0.2% per annum to the base fee listed on the fee schedule below. For
401k accounts subtract 0.2% per annum from the base fee listed on the fee schedule below. Clients are billed quarterly and can
pay by check or credit card. The quarterly fee is 25% of the annual fee listed below. The fee schedule is effective for new
clients after October 31, 2010. Fees may vary from schedule for prior clients.
1.2% per annum on accounts up to $50,000
1.1% per annum on accounts up to $100,000
1.0% per annum on accounts up to $200,000
0.9% per annum on accounts up to $300,000
0.8% per annum on accounts up to $500,000
Either the client or advisor may terminate this agreement at any time by telephone and confirmed in writing.
In the event this agreement is cancelled, the fee payable by client shall be paid for the current quarter. Upon advisor
receipt of written notice of termination from client, advisor shall complete portfolio management for the quarter and
collect the final fee.
Wealth Plan Development and Stock Option Management
This fee is typically between $60 and $200. If you select PDM Investment Services to manage your
portfolio, this service is free. If you elect self-management, the rate is $30/hour.
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