What can I expect from our first meeting?
Initial meetings are an opportunity to get to know each other and to determine if we are a fit. Just as you should be interviewing us and asking questions, we will want to get a general idea of your circumstances, expectations, and whether or not we believe that both parties will benefit from the relationship. You don't need to bring statements or documents and we will never pressure you to discuss details beyond what you are willing to share at this stage. We will not have forms to fill out, ask you for a commitment, or ask for any sensitive identity information such as social security numbers, dates of birth, etc. Usually, the first meeting is casual and informal and held at a public place convenient to you such as a Starbucks. We can also meet at your place of business, home, or our offices if you prefer. We want to get a sense of who you are, the general scope of how we can be of service to you, and to answer every question that you have about us, our business practices, qualifications, and experience. There is never a charge for an initial meeting. Based on this meeting, we will jointly decide upon a future course of action. We work on your schedule and level of commitment, not ours. If either of us is uncertain, then we part as friends and allow the future to take care of itself. back to top Why would I want to do business with a small firm instead of a large institutional company? Large firms offer name recognition and the support of a large organization. They have their own products, or a list of preferred products, and may have internal resources for research. They also have tremendous overhead and therefore maintain sales and production expectations from their sales force to bring on new accounts and sell services and product.
When you do business with Dantche Advisory Associates, you know that you are working with and have access to the namesake of the firm. Our reputation and success depend upon YOU being satisfied. As an independent business, we can provide personal services tailored to each client in the same manner as a boutique firm. We can: - Be familiar with your personal circumstances and tailor our services to meet your needs because we do not have an institutional or standard corporate process from which we may not deviate. All services, reports, and results are based on your expectations. Because we are fee based, you will never feel like you are being sold something.
- Be objective because we have access to most of the same products as institutional providers and are not beholden to any institution in terms of exclusive or preferred use or any sales quotas. We can match the individual with the best products available for their circumstance, including those offered by the large firms.
- Provide a wider spectrum of opinion and expertise because we use the research resources of many institutions and are not limited to just what the home office's experts say.
- Be flexible and implement new tools, processes, and products in an ever changing world to react to changes in your life and the economic and financial landscape.
- Be cost effective because we have a very low overhead and we can find the asset custodians, products, and providers who offer the best and who are cost effective. For example, assets are held at TD Ameritrade. An Exchange Traded Fund can be used in lieu of a mutual fund. The cost of the trade is less, the operating expense of the ETF is less, and there are no continuing marketing (12b-1) fees. Your return is greater than the essentially similar mutual fund.
- Provide accessibility. The relationship is one on one. You always know who is working with you and you know that you can get in touch with us. You will never be transferred to a central account system or central bank of advisors. back to top
Do I give up control of my money if Dantche Advisory Associates becomes my advisor? Never. You are the Owner of any account opened or contract entered. Securities are deposited into a custodial account that is opened in your name and you maintain the right to make any decisions, changes, or withdrawals to or from that account. You also agree to give us limited authority to conduct business on your behalf; in other words, place trades on your behalf and to collect our advisory fee. Any check requests or withdrawals require your signature before the custodian will honor such a request. You are the Owner of any insurance contracts entered also. Only you have the authority to make changes or withdraw funds from such a contract. back to top What is the difference between a bank or brokerage's advisor and a
Registered Investment Advisor?
Banks, brokerages, and insurance companies make up the bulk of the financial product industry. All offer very similar types of financial products. In order to get their highly competitive products into the consumer's portfolio, they either hire sales people or pay a commission to an independent sales person who sells their product. The standard of care to which they are held is to "know the client and offer appropriate products". The compensation is usually a commission for the sale although it is possible that the individual offering the product is paid a salary by the institution and may or may not recommend no-load products, or there is a dual licensing whereby the securities provider is paid a fee only or a commission and fee as is the case with many "wrap accounts". They are also eligible to receive continued fees such as 12b-1 fees for mutual funds.
A Registered Investment Advisor is licensed to provide advice and charge a fee for the value of their services. The fee can be any combination of hourly, by project, based upon the value of assets under management, and in very limited circumstances, based on the change in value of an account. We may not accept or charge a commission for the sale of a security. Our legal standard is higher than the broker's as we are required to make recommendations "that are in the best interest of the client", much like an attorney and a CPA. All fees, charges, and potential conflicts of interest must be disclosed to the client. We believe that the advisory model is in the best interests of an individual who wishes continued advice from an objective resource. The client can rest assured that the advisor does not have a non-disclosed financial incentive in the securities or strategies the advisor recommends.
In the case of insurance products, state insurance laws allow either a broker or advisor in this capacity to receive a commission. The Registered Investment Advisor must discuss and reveal the nature of the transaction and the potential conflict of interest with the client. back to top
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