Questions (Click any question to link to the answer below).
Q: How much money do I need to have to invest with Gaylord Wealth Management?
Q: I already have an account with another brokerage firm. Isn’t it hard to move my account to Gaylord Wealth Management?
Q: I have a 401K at my former employer. How can I move it?
Q: What amount of investing experience do you have?
Q: How do I know I can trust you with my money?
Q: What are your qualifications to manage money?
Q: Why shouldn’t I just use an app to manage my money?
Q: Why should I use a Wealth Manager?
Q: But can’t I just manage my money myself? Why shouldn’t I just use an online brokerage firm, mutual funds, ETF’s or a Robovisor (i.e. Investment App)?
Q: Do you use techniques like tax loss harvesting, rebalancing and efficient trading?
Q: Where is my money held? Do you have direct access to it?
Q: How do you manage securities trading?
Q: Do I have access to my account?
Q: Do I receive statements showing my account balance and activity?
Q: Is my account insured?
Q: What regulatory oversight is there over the firm?
Q: What fees will I pay?
Q: What about trade commissions. Who pays for that?
Q: Do you take payments from other parties (e.g. mutual fund companies, brokerages, etc.)?
Q: What benefit is there to the client paying all fees?
Q: Do you have a Fiduciary Duty to the Client?
Q: Why is Gaylord Wealth Management a better choice as compared with a Financial Advisor with a large brokerage firm?
Q: Are you tech savvy?
Q: What can you tell me about your firm’s technology?
A: Although clients often have hundreds of thousands or even millions to invest, Gaylord Wealth Management believes in servicing everyone. You can start investing with an account as small as $5,000.
A: No, moving an account is easy via a standardized account transfer process.
A: A 401K can be moved without any tax implications to an IRA Account at Gaylord Wealth Management. Just use a direct rollover and the money will be transferred directly from one account to another. Moving your 401K from a former employer’s plan also gives you more control over your investments, as you are not limited to the investment alternatives provided by the 401K Plan.
A: Peter Gaylord, CFA has over 30 years of investing experience. I’ve seen Bull Markets and Bear Markets. The Crash of ’87. The Dot Com Boom and Bust. The Financial Crises of 2008. The Asian Financial Crises. High Interest Rates. Low Interest Rates. Recessions. Recoveries. The impact on the markets of two wars. Over three decades of investing experience has taught me to stay focused on long-term goals and not to over-react to the events of the day.
A: First, meet with me so you can get to know me and make your own assessment. In my 20’s I served for six years as an Officer and Naval Aviator in the United States Navy. I held both Secret and Top Secret Security Clearances. I was entrusted by the President to guard the United States against nuclear attack. As a CFA (Chartered Financial Analyst) Charter Holder I am required to comply to strict Code of Ethics and Standards of Professional Conduct. I am a practicing Buddhist. I manage money, but I am not ruled by it. I believe in karma. My firm is regulated by the California Department of Business Oversight.
A: I have managed investments for over 30 years for both personal and client assets in excess of $1 Million. I hold an MBA from Michigan State University (GPA in the Top 5% of my class). I hold a Certificate in Finance from the University of Berkeley Extension, graduating with Distinction. I am a CFA (Chartered Financial Analyst) Charter Holder, a rigorous certification process generally regarded as the most esteemed qualification in the Investment Management Business. I have passed the CPA Exam. In my work in the Financial Services Industry I have held a number of Licenses including the Series 4, 7, 24, 63 & 65. At E*TRADE I acted as a General Securities & Registered Options Principal, overseeing client trading activities.
A: There are a lot of problems, risks and limitations in having an app manage your investments. It sounds appealing, easy and cheap, but there is a long history of technology being used to manage money. All too often it’s turned out very badly. To understand the risks read the page on Robovisor Risks.
A: Smart people use a Wealth Manager because they lack investing experience and/or they are just too busy to keep an eye on their investments. Doctors, engineers, lawyers and other professionals are consumed with their own work. With today’s markets, which move very quickly, an individual (even one with extensive investment experience and knowledge) can’t take their eyes off the market for a moment. In the time you are working in a single day, or even a few hours, the market can move very quickly. Rapid gains and losses create risks and opportunities. Most people can’t keep an eye on the market, even if they wanted to. Global markets also trade continuously. Asian Markets are trading during California’s evening, Europe during the night, and U.S. Markets are open at 6:30AM Pacific Time, from Sunday Evening until Friday Afternoon. I am watching markets at all of these times so you don’t have to.
A: You could. But for most people the biggest problem is not just investing money, building a well-balanced portfolio, or having a general sense of what markets are doing. Even if you want to spend countless hours monitoring the economy, global news, company/industry earnings, commodities & stock prices (most people don’t) you have to keep your emotions in check. That’s right. The biggest problem for most investors is their emotions. They are ruled by fear and greed. This causes people to do stupid things with their money. They wait for years watching the market go up until they decide it’s “safe”. Then they pile into stocks just before the market falls. Having lost money they panic and sell when the market bottoms. They are ruled by greed and fear. So most people buy high and sell low. Exactly the opposite of what you should do. Overcoming the emotions that lead to poor investment decisions relies on decades of investing experience, the ability to keep emotions in check, and the discipline not to panic and to sit tight when your emotions are telling you to buy or sell. Having an experienced partner and coach is helpful to most investors. When market turmoil hits it’s useful to have someone to turn to.
A: Yes, tax loss harvesting is a long-known practice. Each year securities that have underperformed or are no longer considered as a long-term investment are sold to employ tax loss harvesting. This reduces tax liabilities for clients as losses may be applied against capital gains. Accounts are periodically rebalanced to bring portfolios back into alignment with target allocations. Gaylord Wealth Management trades using the NETX360 Platform, the same trading platform used by major financial institutions to insure efficient trades.
A: Client assets are held by BNY/Mellon, the world’s largest Custodian of client funds with over $27 Trillion in Assets Under Management. Gaylord Wealth Management, LLC does not hold custody over your assets, never has direct access to your funds, and never takes cash or checks made out to Gaylord Wealth Management, LLC. Funds withdrawn from an account are sent directly to the client’s bank account. Never to Gaylord Wealth Management, LLC.
A: Gaylord Wealth Management, LLC uses Shareholders Services Group for all back office functionality, processing, and trading services. Client trades are all placed via Pershing LLC’s NETX360 Trading Platform. Pershing, a subsidiary of BNY Mellon, provides trading services to many of the world’s largest banks, brokerage firms and other financial intermediaries.
A: Yes, clients have direct online access to their own account. A client can access and verify account balances at any time.
A: Yes, clients receive monthly statements that show all account balances and activities.
A: Yes, client accounts are insured by SIPC, which insures accounts for up to $500,000, including $250,000 in coverage for cash. Additional insurance is provided by Lloyd’s of London, for up to $1 Billion, including up to $1.9 Million for cash awaiting reinvestment at the account level. Read more details here.
A: Gaylord Wealth Management, LLC is regulated by the California Department of Business Oversight.
A: Clients pay fees based on a percentage of their account size (i.e. Assets Under Management). Fees are negotiable. The standard rate structure is that accounts under $500,000 pay fees equal to 1.5% of assets under management (AUM or account balance) per year. Accounts between $500,000 – $1 Million pay 1% of AUM. Accounts larger than $1 Million 0.75% of AUM.
A: For accounts with a balance greater than $100,000 Gaylord Wealth Management pays all securities trade commissions and related fees. Accounts below $100,000 have trade commissions paid by the client. However, Gaylord Wealth Management can waive those fees for clients that are committed to future contributions to their account over the long-term.
A: No. Gaylord Wealth Management does not take money from any third parties. Our firm is only paid by the client.
A: Because all fees are paid by the client, Gaylord Wealth Management is focused on servicing the client’s need. Investments are never purchased because the provider will make a payment to the firm. Rather, investments are only purchased with the goal of increasing your account balance. Because the fees paid to Gaylord Wealth Management increase as the client’s account balance increases, we share the same goal of increasing your wealth.
A: Yes. Gaylord Wealth Management, LLC is a Registered Investment Advisor. By law the firm has a Fiduciary Duty to the Client. As a CFA (Chartered Financial Analyst) Charter Holder I also am required to act as a Fiduciary to my clients.
A: Financial Advisors with large brokerage firms often offer “free advice”. But in order to make money they select “suitable” investments for the client, with which they are paid fees from the investment company. Often they select “suitable” investments offered by their own firm, such as “in-house” mutual funds. These also come with hidden fees and expenses. The client’s “free advice” almost always costs the client much more. Gaylord Wealth Management acts as a Fiduciary, only selecting investments with the goal of increasing the client’s wealth. Large Brokerage Firms are fighting the SEC’s efforts to require a fiduciary standard, because they want to continue selling clients highly profitable, but “suitable” investments to their clients. Don’t be fooled that you are receiving “free advice”.
A: Yes, I’ve used PC’s since 1984, the Internet starting in 1990 (with a 1200 baud modem and a SLIP-Serial Line Internet Protocol), the Web since 1993, online shopping starting with Amazon in 1995, Social Media since its inception (user 907,000 on LinkedIn), and Mobile technology since it came out. I built this website using WordPress, I’m certified in Google AdWords and Google Analytics. I worked in the tech industry for a number of years.
A: All of Gaylord Wealth Management’s key applications are run on cloud-based platforms and employ advanced security features. I also employ mobile technology on smart phones and iPad to allow me to manage client accounts from the office, at home, at a client’s home or anywhere on the road. Our technology is not tied to an office. Having started the firm in 2013 we are cloud-based and mobile capable.
Peter Gaylord, CFA
Gaylord Wealth Management, LLC
535 Mission Street
San Francisco, CA 94105
+1 (415) 971-7529
pgaylord AT gaylordwealth.com