FAQs
We know choosing a new firm comes with lots of questions.
We try to answer some of most common questions we receive here.
The annual investment management fee for ArcVest is 0.40% of investment assets managed up to $4mm. The fee is 0.25% on assets above $4mm. The fee is 0.10% on assets above $20mm.
A minimum relationship of $500,000 is required. There are no limits on the number of investment accounts or balances per account.
ArcVest is committed to charging you a fair price. A typical investment manager charges his/her clients fees of 1% per year on average. That’s much too high given technological advances in the investment management industry over the past 20 years. High investment manager fees persist because the public doesn’t know that a low-cost solution exists.
ArcVest is an investment management firm. We are not “traditional” financial planners. However, as part of developing your Investment Policy Statement we will discuss financial planning-related topics.
The process to start managing your investments can vary, depending on your availability to develop your Investment Policy Statement. For a motivated investor, the process may take as few as 10 business days.
Each portfolio follows an investment strategy that is decided and approved by you in advance and is outlined in your Investment Policy Statement. You are hiring ArcVest to monitor and manage your accounts, according to your Investment Policy Statement. As such, you will not be hassled by us seeking permission to perform routine management and monitoring. If you have questions about your account(s), simply contact us by phone or e-mail.
Index investing is based on the concept of capturing stock and bond market returns at the lowest possible cost in order to obtain the highest probability of meeting your long-term financial goals. Index investors generate better returns than the majority of market timing and stock picking investors by using diversified, low-cost, tax-efficient asset classes that provide the returns of the markets. The more you pay for investment advice and products, the lower your expected return.
As fiduciaries, ArcVest adheres to the strictest performance reporting standards. Each client receives a personal quarterly performance report that compares your returns to applicable benchmarks, as defined in your Investment Policy Statement.
All client accounts are held by a qualified independent custodian, Charles Schwab, Inc., member FINRA/SIPC/NFA or Altruist Financial, LLC. ArcVest has selected this custodian because of its commitment to client service, low costs, security and a dedication to operational efficiency.
No. ArcVest employees do not have access to your money. Your money is held in an account in your name by Charles Schwab or Altruist. ArcVest only has limited authorization to trade securities with discretion and deduct our quarterly management fee from the account under management. We have no other access or authority to your account(s).
No. Charles Schwab and Altruist are both options as custodians for client assets. Schwab and Altruist are custodians for our Clients’ assets, which means they hold securities and cash and facilitate trading activities. ArcVest has selected Charles Schwab, Inc and Altruist LLC as custodian because of their commitment to client service, low trading cost, and a dedication to operational efficiency. Our management fees are kept low because of the operational efficiency created by having great technology at multiple custodians
No. Charles Schwab or Altruist does not charge clients a custody fee to hold assets. Some Wall St. firms charge as much as $3,000 per year to custody client assets.
No. ArcVest is not affiliated with Charles Schwab, Inc. or Altruist LLC, nor are we compensated by that company in any way through fees, commission, or incentives. In the spirit of full disclosure, our firm is supplied necessary software that allows our in-house portfolio management system to work efficiently and cleanly with Charles Schwab’s and Altruist’s back-office operations and trading desks. This software is available to all investment advisors.
Charles Schwab Inc. and Altruist LLC send monthly statements to all clients for all accounts. These statements show account balances, trades, cash flows, and unrealized gains. Statements are available in paper as well as through email. In addition, ArcVest will send a detailed performance report each quarter that compares your portfolio’s performance to a series of relevant market index benchmarks. We urge you to compare your monthly statements from Charles Schwab and Altruist with the quarterly statements we send you.
Yes. Free internet access is available to Clients through a special Charles Schwab, Inc. and Altruist LLC website 24 hours per day, 7 days per week. The website also is the source for immediate information on account activity and provides you with many reports including year-end tax information.
At the end of each year, Charles Schwab, Inc. or Altruist LLC will send a Form 1099 to each client that has a taxable account. Included in your Form 1099 will be a realized gain/loss report that will assist you in preparing your annual tax return.