Frequently Asked Questions
Client holdings are generally custodied in investment accounts at Charles Schwab & Co., Inc as a third-party custodian for your assets. SGH Wealth Management, LLC never takes possession of client assets. In partnership with Schwab, we implement high level security to withdraw funds or move money.
We charge an annualized fee directly to the account and prorated on a quarterly basis. The fees are taken directly from our client’s accounts and are a transparent line item in client’s statements. (Not hidden like in commission products)
By having CFA Charterholders on staff (a designation commonly found in mutual fund managers) we are able to run our investment strategies in-house, without the reliance on Mutual Funds or outside active management. These types of investments can carry larger internal costs and due to our ability to avoid these investments, gives us a competitive advantage in terms of all-in client fees compared to advisers who rely on Active US Equity Mutual Funds due to their average internal cost of 0.73%.*
*Source: Morning Star: Fund Fee Study
No. Registered Investment Advisors (RIAs) are regulated by the State securities regulators or the SEC, depending on the size of the RIA. RIAs provide ongoing advice to their clients. In general, RIAs use the same investments offered by a broker-dealer’s registered representative. In general, RIAs use the same investments offered by the registered representative. But instead of buying and selling investments for a commission, investments are managed for an advisory fee. Our Advisors do not carry the Series 7 or 6 Commission Brokers License, so you have 100% confidence that we cannot receive commissions from the investments that we utilize.
RIAs and IARs have a duty of loyalty and are obligated to act in the best interests of their clients without regard to their financial interests or other interests they may have. This is referred to as a “fiduciary” standard of care. Any conflicts of interests must be fully disclosed up front. It is the highest standard of care in the financial services industry.
Unlike “non-discretionary” transactions that require registered representatives to have all transactions approved by the customer prior to execution, RIAs may transact business on a “discretionary” basis. This means they have authority and approval to buy and sell securities and to make other investment-related decisions on behalf of their clients without receiving prior approval. Granting discretion to the advisor is part of the advisory agreement and must be plainly spelled out.
SGH Wealth Management is an independent Registered Investment Advisor.
Dual-registered advisers are 50% more likely to commit misconduct than standalone brokers Dual registrants are more likely to employ an adviser that has: made a false statement to the SEC (21% for dual registrants compared to 1% for independent RIAs), violated SEC statutes (38% compared to 1%), had an SEC order against them (55% compared to 2%), or had a court enjoin an action (14% compared to 0.3%).*
Check to see if your current advisor is either Series 6 or 7 licensed and if they have ever had a client complaint filed at the SEC run website BrokerCheck.org.
No. Investing involves risk of loss, which clients should be prepared to bear.
Our stated minimum is $250,000 of investable assets. However, we are always available to meet and discuss your needs. There is no fee, nor obligation, for our initial consultation.
We encourage open dialog with our clients as we believe that more communication allows for us to do our jobs better. Our team is available to help guide our clients on demand and we are willing to meet more frequently when desired. In addition, SGH Wealth Management institutes a performance review once per year where we will proactively make sure that we are all on the same page.