Investment Conversation Starters
Here’s some questions to ask us, or any financial professional you consider working with, about what you can expect in your managed investment account. Additional questions and recommendations are available from the U.S. Securities and Exchange Commission (SEC).
Who are you?
Aesop Advisor is registered with the Financial Industry Regulatory Authority (FINRA) as an investment advisor. Free tools to research firms and financial professionals are available from the SEC, along with educational materials about broker-dealers, investment advisers, and investing. Learn more about Aesop.
Given my financial situation, should I choose an investment advisory service? Why or why not?
For individual investors who prefer their investments to be professionally managed, we offer discretionary investment advisory services through our Navigator service plan.
What investment services and advice do you provide?
We offer discretionary investment management services to individuals, meaning that we make investment decisions and manage investments in an account you own that is opened through our account custodian. Our managed investment services are offered through our Navigator service plan. In addition to retirement investment management services, Navigator clients receive a personalized written financial plan, including investment recommendations as well as overall cash-flow recommendations.
What will I pay?
You will pay investment management fees directly to Aesop Advisor that will be deducted from your investment account. Our fee schedule can be viewed by clicking here. In addition to our management fees, you will incur other fees at the account and fund levels. These fees include transaction fees charged by the account custodian/broker, and fees charged by investment funds. Fees charged by the account broker/custodian for buy and sell transactions are charged from your investment account at the time transactions are made. Fees charged by investment funds are paid by all investors in a fund. Refer to the account custodian fee schedule and a fund’s prospectus for more information about transaction and fund fees. We do not receive any portion of transaction or fund fees. We do not have the authority to remove funds or securities from your account, with the exception of withdrawing funds for the payment of our advisory fees, which is accomplished by the account broker/custodian. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
What will you buy?
We build diversified portfolios in order to gain broad exposure to overall markets and avoid non-systematic, single-company risk. That means we buy funds that hold baskets of stocks, and we do not typically buy individual company stocks. The funds we choose to buy for your account will be based on an assessment of the information you provide us in the new client form. If you are interested in investing in a certain company, we can often get exposure through a fund that holds that stock. If you are interested in holding individual stocks of certain companies, please let us know. Oil and gas companies are typically excluded from our investments. You can also let us know if there is anything else you would like us to try to avoid in your portfolio.
How much will you buy?
We will periodically purchase assets in your account on a monthly to quarterly basis based on market conditions and the goals of your portfolio. The amount we purchase will be based on how much cash is available in the account, how much we anticipate will be deposited in the future, and the target allocation amounts of each holding. In order to quickly take advantage of opportunities, we typically keep 3% or more of your total portfolio in cash.
How will my investments make money?
There are two ways your portfolio of company stocks and company or government bonds can make money. Dividends and interest payments are one way your stock investments will make money. Some companies pay cash dividends to shareholders as a way to return the company’s profits to their share owners. Corporate and government bonds pay regular interest payments. Income from dividends and interest payments will be credited directly to your account. The other way your investments make money is through growth in company stock prices.*
When will you sell?
As long-term investment managers providing services for retirement accounts, we typically hold investments indefinitely until retirees need cash flow. We do not actively manage accounts by making frequent sales or attempting to time the market. If the investment outlook for a certain asset class changes, we will consider selling, otherwise, we select investments for our clients to hold long-term. We will also sell assets if we feel your portfolio needs to be rebalanced. We may also sell assets to generate cash to effectuate cash deposits and withdrawals or to pay advisory fees due to us. It is important not to be over-invested so you can avoid selling for any reason other than those previously mentioned, which can cause you to incur opportunity costs.
When will I make money?
As your advisor working on your behalf, we will always make a full effort to get the best possible prices. However, not every purchase we make will result in immediate gains. As long-term investors, gains are more likely to accumulate over time than to occur suddenly. Conversely, losses may be more likely during the early phases as stock positions are built up. Read more about our investment strategy.
Are you required to act in my best interests?
As a registered investment advisor, we are required to act as a fiduciary to our advisory clients. This means we have a fundamental obligation to act in the best interests of our clients and to provide investment advice in our clients’ best interests. We owe our clients a duty of undivided loyalty and utmost good faith, and should take every reasonable step necessary to avoid any activity in conflict with the interest of any client. Ask your financial professional if they are a fiduciary. If so, ask them if they are fiduciary some of the time, or all of the time, and ask them to clarify when they are acting as a fiduciary and when they are not. Regulations for investment advisors can differ from broker/dealers, although similar services may be provided. Aesop Advisor, LLC is a registered investment advisor, and is not registered as a broker/dealer. More information about investment advisors and broker/dealers is available from the SEC.
Do you have account minimums?
No, Aesop Advisor does not impose minimum amounts to open investment accounts or minimum balance requirements.
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*Important: Investments in your advisory account are not protected by the Federal Deposit Insurance Corporation (FDIC) and may lose value. All investments involve assuming the risk of losing the principal invested. The past performance of a security, stock, bond, industry, sector, market, or financial product does not guarantee future results or returns.