Other questions
OUR RELATIONSHIP
INVESTMENT SERVICES
OTHER SERVICES
FEES
OUR RELATIONSHIP
Every client engagement is assigned to a team of VPA staff, including a certified financial planner (TM) professional and a client service associate. We work toward being an indispensable resource when you have financial decisions to make.
Only our advice.
VPA is a registered investment advisor (RIA) and is held to be
your fiduciary. In this capacity, we must make certain that our
recommendations are always in your best interest. We adhere to
requirements for disclosing any conflicts of interest that might
exist. Brokers are not held to the same standards unless they are
also RIAs – and many are not. Those who are not, do not need
to reveal potential conflicts before their clients act on their
advice. That is a serious disadvantage for the consumer.
The U.S. Securities and Exchange Commission (SEC).
How is VPA different from other investment advisors?
With more than 20 years of experience solving personal financial
problems for clients and putting hundreds on the right track,
we have a depth and breadth of knowledge and experience that
is rare in a firm still small enough to deliver truly personalized
service.
How often will I meet with you?
In the beginning of our engagement, we will probably meet more frequently as we explore your needs and make observations and recommendations to strengthen your finances. As we complete our initial assessments, the frequency of the meetings – in person, by telephone, or e-mail – are dictated by your specific needs. What matters is our commitment to provide unlimited contact on financial matters for our fixed fee, agreed upon in advance.
How much personal attention will I receive regarding my needs?
We strive to deliver a very high level of personal attention. Over 70% of our clients have worked with us for more than five years. We consider our retention rate very high and symptomatic of our clients’ satisfaction with our highly personalized service.
Will I have the same advisor all the time?
Typically, every client is assigned a professional certified financial planner(TM). If it’s important to you, we would always attempt to maintain that relationship. In all engagements, however, there are multiple staff members that assist in delivering the superior service we provide. We see that as a real plus in working with our firm.
Do you have a minimum asset requirement?
We can work with you in two ways. The first involves a comprehensive assessment that ends upon the delivery of our observations and recommendations. The second provides ongoing and continuous services, typically over the course of a year for a fixed fee. We charge a minimum of $5,000 for an assessment, but the fees can be quite a bit higher for complex situations. Our fees for ongoing financial advisory services are based on “assets under management,” according to the following schedule:
Market Value of Assets Annual
Fee
$0 to $2.0 million 1.00%
$2,000,001 to $5 million 0.75%
$5,000,001 to $10 million 0.50%
$10,000,001 and over negotiable
INVESTMENT SERVICES
Do you recommend both mutual funds and individual securities?
We design investment portfolios using asset allocation strategies. Depending on your circumstances and preferences, we work with no-load and institutional mutual funds, market index funds, exchange traded funds, and separately managed portfolios of individual securities.
How do you choose the investment managers you work with?
We do research on every mutual fund or separate account manager we use for our clients’ investment portfolios. We use Morningstar research as well as research from several other independent sources. We focus on consistency when selecting managers, as well as a variety of other factors. These include – but are not limited to – cost, performance versus their peers and market benchmarks, longevity, and investment style.
Can VPA provide recommendations for my employer-held retirement accounts?
Yes. We ask that you give us access to your benefits Web site so we can fully advise you on your investment options.
Where can I find information on your investment performance?
We do not publish our investment performance due to the industry rules under which we must operate. Because we do not invest every client in the same mix of securities, investment performance differs across our business.
OTHER SERVICES
Will you help me create a financial plan without managing my accounts?
We offer a comprehensive financial assessment that does not include ongoing advice or investment management.
Will you prepare my tax returns?
We do not prepare income tax returns but do work with a network of tax preparers who can.
Do you provide credit counseling and help with debt management?
We review your credit situation as part of our overall assessment but we do not offer debt management or credit counseling.
Can you help me write a will and other estate planning documents?
Our professional staff includes a Pennsylvania licensed attorney. But under no circumstances would you ever be required to use the legal services of this attorney. We often refer clients to outside counsel and are willing to work with whomever the client designates for legal support.
How will VPA simplify my finances?
We typically consolidate accounts and seek ways to automate bill paying wherever possible. Because we collect data on virtually every aspect of your financial life, we become a central repository for your financial information, even in your absence.
Will VPA work with other professionals that I use?
Yes, we routinely coordinate our efforts with existing advisors and service or product providers. We can also help you objectively evaluate the services of these professionals.
FEES
How is my annual fee calculated?
We use our standard fee schedule to renew our clients annually.What is included in my annual fee?
Once we have agreed in writing on the scope of the engagement, we pledge to provide as much contact as you require for the term of the engagement.
Is the annual fee tax deductible?
As a “miscellaneous expense,” our fees are deductible to the extent they exceed 2% of your adjusted gross income. We can bill your IRA for fees related to advice on your IRA assets. Such fees are not considered taxable income if taken from the IRA and paid directly to VPA.
What other charges or fees can I expect?
When we buy or sell securities for your account, there can sometimes be fees related to those trades. We have negotiated fees with our custodians that we believe to be fair, reasonable, and typically at the low end of the scale versus their peers. There are also internal fees paid to mutual fund managers when we purchase those products .