FAQ's

1. What do you primarily invest in?

A. Stocks, bonds, ETFs, and mutual funds.

 

2. What are the kinds of stocks/ stock mutual funds you invest in?

A. We invest in small, medium, large cap as well as growth and value stocks. These can be in turn be domestic or foreign/ ADRs. We are a go anywhere investment advisory in the universe of securities we have defined above

 

3. How much cash do you keep in your accounts?

A. We keep cash as required. If we think the market is overvalued, then we park your assets in cash sometimes till we find securities which meet our valuation criterion.

 

4. How do you get compensated?

A. You the investor write us an annual check as a % of your assets under our management. If you have Scottrade account you give us the permission to deduct the fees electronically.

 

5. How do I know what is happening in my account?

A. You will receive all trade confirmations and account statements from your brokerage or custodian firm, like Scottrade, Etrade, Fidelity etc. We will also send you an annual statement detailing your account performance, contributions, fees among other details.

 

6. How do I withdraw any money from the account?

A. Simply by following the procedure defined by your brokerage or custodian.

 

7. Are Rollover IRAs beneficial compared to keeping money in a old 401k or rolling to a new 401k?

A. Yes, because investment options increase many fold with Rollover IRAs.

 

8. What if we decide to cancel our accounts with you?

A. Simply send us an email, stating that you want to cancel, that is all. There are no obligations. Any unused fees will be returned within 30days of cancellation

 

9. If I am conservative in my investing, do you accommodate my investment preference.

A. Yes. Although, most of the portfolios are run to maximize capital gains (major portion in stocks or stock mutual funds, ETF etc), we will accommodate your wishes to put more conservative investments like bonds, income funds, preferred stocks, REITS etc.

 

10. How many Accounts do you have?

A. Around 60.

 

11. What is your asset under management?

A. About 4-5 million US$.

 

12. What was the historical average return of US stocks as measured by S&P500?

A. 1926-2006 (S&P500 inception was 1926), historical annual average returns have been 10.41%

 

13.  What will the probable expected return from S&P500 large cap stocks in USA in the next 7 years?

A.   0%. So we have to be very carefully invest your money to earn a positive return.

 

14. Will your performance be better than S&P500, the benchmark used?

A. We will strive to add value to the above performance, though unlike death and taxes, it is not guaranteed.

 

15. How frequently do you review Accounts?

A. Account reviews are done quarterly to semester.

 

16. What do you expect to happen in the economic front this decade?

A. A crash in China, a big Global recession which is really nasty. Large inflation may happen in USA which leads to the value of dollar falling. Resource shortages will happen which may lead to war.

 

17. Which investment accounts are better for us?

A. Roth IRA is the best (tax free after retirement) followed by 401k as it helps reduce your taxes now but you have to pay taxes when you retire. Investment choices are far superior in IRAs and Regular accounts compared to 401k.