No, you don't have to live in Vermont or New Hampshire. But you must reside in the United States or Puerto Rico to become a client. We are allowed, per the regulatory authorities, to take a limited number of clients in states other than Vermont. You can see the states in which our clients live here.
No. Investments are not guaranteed. All investments may lose money, including possible loss of principal. That being said, we will work to build real diversification into your portfolio. For example, in a severe financial crisis, United States Treasury bonds historically do better than most other asset classes. When fear takes over, investors around the world have sought the shelter of the U.S. Treasury.
Yes, at the moment you need $25,000 of investable assets before we can take you on as a client. However, if you have less than that and are interested, please contact us when you reach that level. Our clients range from just over our minimum to above $10,000,000. We are interested in helping people across the savings spectrum.
Yes. Many work retirement plans are loaded with high-fee, underperforming mutual funds. It can be difficult to even find the index funds! We can manage your personal work retirement plan as one of the accounts under our purview if you are a client. Or, we can transition your entire business to a good, low-cost indexing plan. See more details here.
Yes, definitely. There are certain legal documents that your parent will need to sign so that you can be a part of the decision making. Generally this is an excellent idea, and we are enthusiastic about it. The financial industry has a history of targeting the elderly for high fees, a practice we hope to end.
Yes. We can give feedback to clients who have specific questions on spending or saving. We also now have a Personal CFO option, which offers you a chance to work with a financial advisor to discuss your entire financial picture and set up a savings plan focused on your financial goals.
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The definition here is a bit in the eye of the beholder. We do not draw up a spending budget for you. We don't work in insurance, or prepare taxes. We do focus on your financial investing picture - how to save and invest enough for you to retire well and meet your life goals. We are always happy to answer questions that might come up that are in my realm of expertise. For example, if you are refinancing a house, we could discuss advantages and disadvantages of a long-term vs short-term mortgage.
The models we use will be tailored to you, so that investments are suitable for you. Beyond the index models, though, clients sometimes ask for carve-outs. For example, there may be a position in an individual stock that they are holding for nostalgic reasons. Or they may enjoy owning a part of a public company. While we don't recommend this as a strategy going forward, we recognize the need for flexibility in your plan.
We don't generally work directly with them - you would be the person who interfaces with them. In some circumstances we will need to. We can refer you to excellent accountants and estate lawyers, particularly if you reside in Vermont and New England.
In 1999 our founder, Dan Cunningham, started testing the models using his own assets. They have improved steadily over the years. Investing with these models through two extreme financial crises (dot-com crash and real estate crash) taught him a lot about how they behave in outlier situations.
We worry that people are going to outlive their savings. This problem is about to explode, and it has a painful ending. While the financial industry gets wealthy from fees, normal people will suffer. We believe we can alleviate this for people given enough savings and time.
"Gradually, and then suddenly." Ernest Hemingway, on how he went broke.
We would love for a client to be able to retire spending only dividends and interest and not tap their capital base. In this sense the capital base works like a business for them, producing cash quarterly. This is not always achievable but so attractive that it's worth a discussion.
Aha, now you're getting into specifics. The answer is no, but for the reasons, you'll have to become a client!