When do your contracts renew?
Our contracts renew every January 1st, so you’ll see the current year fee is pro-rated for the balance of the year. For instance, for a contract signed in June the contract date is listed as 7/1/20 – 12/31/20 (1/2 of the annual fee for the remainder of the year). Even though the contract start date is listed as 7/1 we are happy to get started working for you right away!
Am I committed to paying you for the duration of the contract?
Although the contract is written for the entire year, it is an at-will contract so we need to earn our fee every day. There is no commitment on your part and we will return any unearned fee upon termination.
Can you explain how Schedule A & B work regarding our investment accounts?
Part of our role is to advise you on your investments regardless of where the accounts are held. Currently, we’ve listed your investment accounts under Sched B (‘Assets under Advisement’) and we will update this as we get more details. If we decide that it makes sense to consolidate some of your existing investment accounts at Fidelity for SPP to manage directly we would update Sched A (‘Discretionary Accounts’) to reflect the accounts we take discretion over.
How about some definitions?
Assets Under Management: If assets are under our “management” we have the ability to place trades on your behalf.
- Discretionary: For discretionary assets under management, we do not need prior approval for each trade (however, we have agreed upon a strategy and level of risk and would not make trades outside of that without having a conversation first).
- Non-Discretionary: For non-discretionary accounts, we still have the authorization to place trades in your account, but, must have each transaction approved by you verbally first.
Assets under Advisement: These are assets in accounts that we have no authorization to place trades in, therefore, you will need to execute the recommended transactions. We continue to advise on the appropriate risk level and investments in these accounts, but we are unable to execute (eg. your company 401k plan)
Anything else we need to know?
Yes, click here to access our Form ADV which is our annual compliance filing with the SEC and provides more detailed background on our firm.