Portfolio Management Services

Our firm provides portfolio management services based on the individual needs of the client. During our data-gathering process and discussion, we will discuss the client’s individual objectives, time horizons, risk tolerance, and liquidity needs.  From this discussion which includes education on historical markets performance and volatility an investment objective is determined for each account managed. The stated investment objectives are aggressive growth, growth, growth with Income, balanced or income focused.  With this information we develop a client's personal investment policy statement with an asset allocation that matches this objective and create and manage a portfolio based on that policy and allocation. Account supervision is guided by the stated investment objective as well as tax considerations. In addition, clients may impose reasonable restrictions such as aligning investment choices with their own principles.

We will implement the portfolio with use of etf’s (exchange traded funds), mutual funds or individual equities. For accounts over $500,000 a covered call strategy on etfs and equities may be incorporated. This covered call strategy consists of selling options on existing positions for a future date at a pre-determined strike price. We will rebalance the portfolio and make investment transactions as we deem appropriate considering the economy and market valuations. We will follow economic data such as GDP, and purchasing manager indexes as well as monitoring Government’s monetary and fiscal policies. We will monitor market and sector valuations and use comparative valuation models among asset classes such as the FED model which compares earning yields to treasury yields. In our effort to stay on top of economic and market conditions we will access outside economists and market strategists. In our effort to find investment vehicles that may provide insight into good risk/reward opportunities we will speak with professionals such as portfolio managers. In addition, we may subscribe to outside sources that help us to gain information and insight into specific investment vehicles such as mutual funds and individual securities.

Purpose Financial Planning LLC (PFP) offers our Portfolio Management Services to our clients who have employed us to produce a complete financial plan. Once the financial  plan is completed and paid for we will charge our clients an advisory fee that is based on the market value of the assets under management. Our Portfolio Management Clients will then receive an updated financial plan annually at no charge. The advisory fees are calculated as follows:

Account Value Annual Advisory Fee
$70,000 - $100,000 1.30%
$100,001 - $250,000  1.20%
$250,001 - $500,000  1.00%
$500,001 - $750,000 0.90%
$750,001 -  $1,000,000  0.80%
$1,000,000 - $2,500,000 0.70%
$2,500,000 and Above    0.60%

*Minimum of $70,000.00 may be waived on a case by case basis.

The advisory fees are negotiable and are pro-rated and paid in arrears on a quarterly basis. The advisory fee is a tiered fee and is calculated by assessing the percentage rates using the predefined levels of assets as shown in the above chart, and applying the fee to the account value as of the last day of the previous quarter. No increase in the advisory fee shall be effective without agreement from the client by signing a new agreement or amendment to their current advisory agreement.

Advisory fees are directly debited from client accounts, or the client may choose to pay by check. Accounts initiated or terminated during a calendar quarter will be charged a pro-rated fee based on the amount of time remaining in the billing period. An account may be terminated with written notice at least 30 calendar days in advance.  Since fees are paid in arrears, no rebate will be needed upon termination of the account.