Frequently Asked Questions and Answers
- How is Alpha Advisors compensated?
We are a “fee-only” financial advisor. Our fees are simply a percentage of assets under management.
Our fee schedule is as follows:Portfolio Value Fees Amounts up to $3,000,000 1.0 % Amounts between $3,000,000 and $6,000,000 .75 % Amounts above $6,000,00 .50 % Subject to minimum annual fee of $5,000 . We feel this arrangement eliminates the natural conflicts of interest that can arise when a financial advisor receives a commission on the investments being recommended. With no products to sell, we are not limited in the investments from which we choose. Our interest is aligned with yours – prudently growing your portfolio.
For clients with larger portfolios and/or more complex balance sheets, a negotiated annual retainer arrangement is available.
- Do you take possession of my funds?
No, Alpha Advisors at no time takes possession of your funds. We use Fidelity Investements, one of the nation’s largest discount brokerages, as custodian. Your accounts are maintained at Fidelity Investements, and your investments and future deposits are sent directly to them.
- What does “discretionary authority” mean?
“Discretion” means that we take the lead in managing your investments. Unlike a traditional stock broker, who must obtain your approval for every transaction, we are granted the authority to invest their portfolios as we see fit, subject to the guidelines in your Investment Policy Statement.
- What is an Investment Policy Statement?
This document is unique for each client. It lays out a client’s investment objectives, time horizon, risk tolerance, acceptable investments, target asset allocation and allowable ranges for the portfolio, and performance benchmarks. The end product of several conversations, diagnostic exercises, and analysis, the IPS ensures that we are all on the same page and provides us with guidelines for managing each client’s portfolio.
- Will you work with my existing attorney and CPA?
We believe that all the major components of your financial world should be coordinated according to a unified plan. Alpha Advisors will work with your existing professionals, or assemble a team of experts, according to your needs.
- How long have you been in business?
Alpha Advisors was established in January 2001. Its Chief Investment Officer, Doug Wallace, has over 30 years’ experience managing investments. Prior to founding Alpha Advisors, Doug was responsible for managing portfolios exceeding $10 billion at Crestar Bank (since acquired by SunTrust).
- Are you a Registered Investment Advisor?
Yes. We are registered with the SEC and in the states of Virginia, Tennessee, and Texas. A copy of our disclosure brochure (Form ADV) is available upon request.
- Is that a gyroscope in your logo?
Yes! Change is constant: world events, markets - even you change. A gyroscope is a symbol of stability and “right” orientation – once in motion it is able to maintain balance in the face of external forces acting upon it. We believe that the way we approach our clients’ financial affairs offers them flexibility, so they can stay headed in the right direction.
Things are changing all the time, either with you or the external environment. Did the tech bubble seem like a “once in a lifetime” event? What about 9/11? Enron and Worldcom? These “once in a lifetime” events appear to take place rather frequently – who knows what is coming next. How many major tax reform bills have we had in the last 20 years that impacted your investments, your estate, and so forth?
On a more personal level, we all have things in our own lives that change our circumstances or our goals and priorities. When something happens that affects you, where do you turn for guidance? We believe that a financial advisor who knows you well and is watching the big picture is a key component of a dynamic strategy that can adapt to change and keep you on track to achieve your goals.