Specific Situations
Q.
There’s something specific I need to address early in the planning process. Can you help?
A.
Often what precipitates a new client engagement is a challenge or opportunity the client has already in motion. Please see our Financial Counsel page for examples of these financial waypoints.
Q.
How do I know if I have enough to retire?
A.
Potential retirement is among the precipitating factors that bring clients to us. We believe a comprehensive review is the only way to adequately address this important question.
Q.
What are your qualifications to advise on my individual circumstances?
A.
KBBS has counseled individuals, families and trustees since 1991. From our origins we were an early adopter of integrated financial planning under an exclusively fee-for-service arrangement (no commissions). We invite you to review professional backgrounds of our financial professionals via our Team page.
Q.
My spouse already has an advisor or broker. Will you still provide me counsel?
A.
We do our best work when we integrate household budgets, joint tax returns and an integrated balance sheet.
Q.
I’m already retired. Are you still helpful?
A.
Many of our clients are already retired. Managing finances in retirement is in some ways more critical than the period of work and saving because of the absence of earned income to compensate for mistakes.
Clients & Fees
Q.
What types of clients do you normally work with?
A.
Our clients are generally individuals, families and trustees. New clients generally must have sufficient assets to support an annual fee of $10,000 or more.
Q.
Do you serve your clients as a fiduciary?
A.
Yes. As a fiduciary, our firm has a duty of utmost good faith to act solely in the best interests of each of our clients.
Q.
How is your fee calculated?
A.
Most clients compensate us with a fee that is reviewed and usually reset annually. In assessing what is a fair fee, we typically apply a standard fee schedule (0.40% to 1.10% of a client’s investment portfolio, depending on size) and then adjust as appropriate. We also charge an initial set-up fee in the first year of a new engagement.
Q.
For fee purposes, how do you define “investment portfolio”?
A.
All assets held predominantly for investment purposes. This includes clients’ 401(k) or other workplace retirement accounts. In our model, we seek to understand and advise on the totality of each client’s financial picture.
Q.
Are you “fee-only” or “fee-based”?
A.
We are fee-only, which means strictly no commissions or other non-fee income. (In a fee-based model, by contrast, advisors may receive commission income.)
Q.
Do you do hourly work?
A.
Only rarely. We do our best work when collaborating with our clients over time and across the full continuum of their financial landscape.
Q.
Will one person sell to me and then hand me off to someone else?
A.
We do not have dedicated salespeople. The principals of the firm are involved in new-business discussions and also directly serve clients. You will always know which team members are your designated points of contact.
Q.
Do you have any limitations on whom you take as clients?
A.
We generally support individuals (including in their roles as trustees) and not institutions. We look for a natural fit with our investment philosophy and process. Because we work across clients’ balance sheets (the debt as well as asset side), there may be circumstances in which a potential client’s heavy debt financing might be important to resolve prior to an engagement.
Range of Services
Q.
What does financial counsel encompass?
A.
Comprehensive planning and advice across your whole financial picture. Please see our Financial Counsel page for an overview or contact us for more details on our approach.
Q.
Can you do my estate plan?
A.
Our comprehensive planning include estate planning, but we do not prepare estate-planning documents or offer other legal services. We will be happy to work directly with your attorney, or recommend one, for aspects that require legal expertise.
Q.
Will you do my tax return?
A.
We are forward-looking in our tax forecasting and planning. We do not prepare tax returns but are happy, at your request, to interface directly with your accountant to help facilitate return preparation.
Q.
Do you sell insurance?
A.
No. While protection is an important aspect of our planning process, we are not directly engaged in the sale of insurance.
Investing
Q.
What investment products do you use?
A.
Most client assets invested in financial markets are in mutual funds or exchange-traded funds (ETFs). We employ a range of fund products, from low-cost index funds to actively managed funds with higher fees. Clients pay fees to the funds we select (and transaction fees to Schwab or another custodian) in addition to paying our own fees. To the extent we focus on a stock for a client it is invariably to efficiently diversify away from a concentration issue.
Q.
How will you recommend my accounts be invested?
A.
We recommend a mixture of investments after analyzing clients’ goals and their tolerances for unknowns. We typically recommend two or more specific asset managers for each asset class represented in our recommended allocation. We use a mix of active and passive management, mutual funds and ETFs and may recommend other specialized investments. We may provide counsel regarding investments in funds-of-funds that invest in private equity, hedge funds, and other private placements.
Q.
Do you get paid if the market goes down?
A.
Yes. Clients pay us a percentage of their total investment portfolio, typically on a quarterly basis. We do not do any work on a performance-fee basis.
Q.
Can you manage just one of my accounts?
A.
No. Our objective is to understand your full financial picture. Only in that way, in our view, can we provide the best financial counsel.
Q.
Can you invest using ESG or Impact principles?
A.
Yes. Our advice may touch on environmental, social and governance (“ESG”) investments. Other examples of special facets of our advice include private placement funds, insider stock with certain investment restrictions, and other investment approaches that might be unique to a client’s wishes or circumstances.
Q.
Can I direct investments in my accounts?
A.
We believe the success of clients’ financial planning is enhanced when they understand the general nature of our investment approach and are made aware in advance of our suggested portfolio changes. Thus, we make recommendations on a non-discretionary basis, which means clients authorize each portfolio adjustment. However, our services are not a natural fit for “do-it-yourselfers.”
Q.
Will you help manage my 401(k)?
A.
Yes. Management of retirement accounts is a standard part of our whole-picture financial counsel.
Q.
Do I have to move all my accounts to Schwab?
A.
No. For clients in need of brokerage and custodial services, we routinely recommend Charles Schwab, but do not require clients to use this custodian, and we have no affiliation with any brokerage firm as our preferred custodian.
Regulatory
Q.
Where can I find regulatory information about you?
A.
We invite you to review our Form CRS and Firm Brochure (ADV). You can also find this information and more about us via our page on the Securities and Exchange Commission’s Investment Adviser Public Disclosure site. Neither our firm nor any of our financial professionals have any legal or disciplinary history.