Our question to you…
How have your investments performed over the last 5 years?
If you don’t know, or have not received this information from your current investment professional, it is vital that you know the performance of your investments. Contact your investment professional and insist they provide you the information. Ask them how your portfolio has performed in comparison to the S&P 500. We recognize it can be difficult to challenge the advisor, especially if you have developed a relationship with them. Remember, it is your hard earned money and you must be the captain of your ship.
KIA can help you with this situation – we can calculate returns from information contained on year end statements from your current investment firm.
How does KIA measure the performance of my account?
When a client opens a new account, all information is entered into Centerpiece, a performance tracking system. Centerpiece tracks deposits, withdrawals, interest and dividend income and produces monthly, quarterly, and since inception performance data. Reports are retrieved via a password protected website, accessible by KIA.
What is a “managed account”?
A managed account represents a portfolio of securities that are managed according to the investment objectives of the personal investor. Managed account clients give KIA authority to buy and sell investments without requiring advance authorization. Clients receive monthly reports showing account holdings and individual asset valuations. All client buy-sell activity is immediately available electronically; in written format within one-week; and a full summary recap of all activity is provided monthly.
What is the S&P 500?
The Standard and Poors 500 (S&P 500) is an index made up of five hundred different stocks. Each is selected for liquidity, size, and industry. The index is weighted for market capitalization. The S&P 500 is the best benchmark for a broad based portfolio and standard 401k plan.
How do I know you are not taking extraordinary risk for the outstanding performance in my portfolio?
The broad stock market (S&P 500) is assigned a beta rating of 1. Beta is a commonly used benchmark of volatility. Our subscription service to mutual fund research data provides 3 and 5 year beta numbers on mutual funds held in KIA portfolios. The majority of no-load funds held in client accounts have a beta rating at or below the broad market. Portfolios may contain one or two funds with a beta slightly above the broad market, and other funds with a beta well below the broad market.
Do you exclusively use mutual funds in all client accounts?
KIA invests in no-load mutual funds exclusively for portfolios of less than $100,000. Portfolios over $500,000 will typically hold 15% of the assets in individual stocks. Some of our client portfolios hold 60% of the assets in income oriented investments based on age of client and associated risk.
Does KIA perform any other services?
We provide our clients with a complete review of your financial health by performing financial planning, retirement and distribution planning, and estate trust planning. However, we do recommend that you utilize other professionals such as CPA's, tax and estate attorneys, and real estate brokers as a complement to our services. These professionals can be an invaluable resource.
Do you receive any fees for purchasing specific mutual funds or stocks in my account?
Any mutual funds purchased are no-load funds. We make no fees on purchases of mutual funds or stocks. KIA earnings are limited to the management fee charged as regulated by the SEC and calculated on the percentage of total assets managed. We do not earn fees from any other source, and such a fee-based approach aligns our interest and yours.