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Frequently Asked Questions

Read through the questions and answers by clicking on each of the questions below.

What is the difference between an RIA and a traditional stock broker?

Registered Investment Advisor firms (RIAs) like TMD have a fiduciary duty to place a client’s interests ahead of the firm’s interests. Brokers have no such obligations. A broker is essentially a sales agent, and generally speaking, a broker’s first duty is to his/her firm. A broker is typically encouraged to sell his/her firm’s products—not always your best solution—and not always in your best interests. We have no such conflicts of interest. Rather, our firm’s interests are aligned with those of our clients.

How do you get paid?

TMD charges an hourly-based fee for the design and presentation of a financial plan. For those clients that wish to work with us on an ongoing basis through our wealth management services, TMD is paid an asset-based fee dependent on the amount under our management. Our fee schedule typically starts at 1% of the assets under our management and is proportionately reduced for larger relationships. We believe this is the best way to provide unbiased wealth management solutions to our clients. TMD, as an ancillary service to our clients, does use commissioned insurance products for basic risk management solutions like term insurance, disability, and/or long-term care insurance. These services make up less than 3% of our annualized revenues.

What is your investment minimum?

Our new clients typically have $750,000 or more of investable assets that they wish us to manage for them. We occasionally make exceptions to this minimum, but that is at our principal’s discretion.

How are my accounts billed?

Clients’ accounts are billed quarterly in arrears. The management fee is directly proportional to the amount of assets that TMD manages or advises for the client. You will receive a statement showing exactly how your fee was calculated. Additionally, our custodial relationships typically provide summary information on the debiting of our fees related to our clients’ account(s).

Will TMD hold my assets directly?

No. TMD is not a custodian and therefore does not take custody of your assets. We feel separating custodial services from investment advisory services provides additional assurances to our clients given the recent financial scandals that have plagued our industry. Separating these services means that advisory firms have no access to transferring client funds to any third party without express written consent of the client.

How do I get online access to my accounts?

A link to most custodial providers that we work with is located on our client website. We have also created a customized portal that aggregates all our clients' data into one access point. At each of these sites, you will be able to view all transactions, positions, and balances of all of your accounts on either an individual or consolidated basis, should you have multiple accounts.

 

Will I need to move my assets to a certain custodian to work with you?

It is not required, but it may be to your advantage. We have done extensive research on the marketplace and feel that our custodial partners provide a comprehensive suite of services to meet the needs of our clients. We review these arrangements periodically to determine if other options are more appropriate for our clients from a value-added perspective.

How often will I receive statements?

You will receive customized asset reports from TMD every quarter and all the necessary tax reporting at year’s end. In addition, our custodial service providers will send you independently-generated, monthly statements summarizing your portfolio holdings and activity in the account(s). Trade confirmations generated by our custodial partners will also be provided electronically or mailed to your address of record.

Will you work with our CPA, attorney and other professional contacts?

Absolutely. We encourage this with all of our clients, as working with your professional team is critical to your financial plan’s success. We view ourselves as the ‘hub’ or ‘CFO’ for your wealth management planning, and we work with all of your advisors to coordinate, implement, and manage your financial affairs. For those clients that do not have trusted relationships already established, TMD will be glad to facilitate new relationships with some of our trusted advisors. Rest assured, TMD receives no compensation for referrals to our strategic partners.