We do not earn commissions on trades placed on behalf of our clients. When placing a trade, our goal is to attain “best execution” for our clients. The SEC defines best execution as “the opportunity to get a better price than what is currently quoted, the speed of execution, and the likelihood the trade will be executed.”
For stock and mutual fund trades, we typically use the client’s custodian as the broker to execute the trade because there is no price advantage to executed trades away from the custodian. However, we do comparison shopping when purchasing bonds because, unlike stocks and mutual funds, there can be a wide price disparity on bonds among different brokers.
We monitor all client’s portfolio activities on a daily basis and perform any maintenance necessary.
- We update prices, review account transactions and reconcile the positions in our portfolio accounting software with the custodian on a daily basis.
- We review trade confirmations for accuracy each day.
- We review cash withdrawals and deposits and look for unusual activity in our clients’ accounts.
- We review new accounts to ensure the account is titled appropriately, assets are transferred properly, and cost basis and acquisition dates are entered assuming the client has provided us with this information.
- If a trust is splitting, we will work with the client’s accountant to ensure the account is set up and assets are transferred properly.
- In the event of a death, we obtain date-of-death values, update the acquisition dates, cost basis and account registration.
We monitor accounts daily to prevent cash overdrafts. You can receive cash from your account via bank wire, electronic funds distribution or by check. In addition, we calculate IRA required minimum distribution amounts and help facilitate the distribution process.
We send our clients a quarterly investment update which lists each client’s holdings, position size, cost basis, market value, and estimated annual income. We also mail a quarterly newsletter to clients. In January or February of each year, we mail out information on realized gains and losses for our taxable accounts. This information reflects the cost basis provided by the clients as well as the brokerage firms.