Service Programs for Individuals & Families
I. Wealth Management Service
Our wealth management service is appropriate for individuals, couples and families with $500,000 or more in liquid assets who are looking for a comprehensive approach to portfolio management and financial planning. The program starts with an in-depth review of your life goals and financial goals. Next, obstacles, concerns, problems and beliefs about money and investing are extensively explored and discussed. We work together with you to solidify your goals and document them. We then complete a comprehensive review of your financial situation that will include the following features:
Current Portfolio Review – We will do a complete analysis of your current portfolio (includes all regular brokerage accounts, mutual funds, 401(k) plans, IRAs, Trusts, CDs, savings accounts, college savings vehicles, annuities, etc.) and discuss your asset allocation and investment choices.
Client Risk Assessment – Each client will complete a risk tolerance questionnaire in order to fully explore his or her tolerance for risk and expectations for future returns.
Structure New Portfolio – Based on your life and financial goals, comfort with risk, etc. we will suggest a new optimal portfolio for you. We will suggest a target asset allocation and recommend investment vehicles (like mutual funds, exchange traded funds, alternative investments, etc.) for each asset class. We will then help you implement these proposed portfolio changes.
Retirement Planning – We will discuss the lifestyle you wish to enjoy during retirement and the age at which you wish to retire. We will prepare an analysis to determine what amount of investments and additional savings are necessary to achieve your goals. Where helpful, we will develop scenarios to help analyze how best to achieve your goals and any tradeoffs that might need to be made among them.
Cash Flow Analysis – We will make suggestions on how you can review and analyze your current spending patterns. Together we will determine the level of discretionary income available for investment or other uses. The cash flow work will help us with long-term planning by providing a baseline with which to estimate your future spending needs.
Investment Tax Analysis – We will address whether your portfolio is properly set up to take full advantage of opportunities to minimize federal and state income tax liabilities.
Education Funding Analysis (if applicable) – We will prepare an analysis to determine what amount should be set aside to fund the education you desire for your children or grandchildren. Additionally, we will present alternatives for savings vehicles and help you select the most appropriate vehicle given your specific needs.
Insurance Review – We will address whether you have adequate life, disability, and long-term-care insurance. We will also review your property and casualty insurance to determine whether you have both adequate and cost-effective coverage. We will review your current insurance policies and make suggestions regarding the appropriateness of your coverage within the framework of meeting your goals. We will recommend independent insurance agents that specialize in the areas mentioned.
Estate Planning Review – We will review your existing estate planning documents (wills, trusts and powers of attorney) to ensure that they reflect your wishes and determine the need, if any, for any additional estate planning action. We will recommend independent attorneys who specialize in drafting estate planning documents, if needed.
Stock Option Planning (if applicable) – We will assist you with decisions regarding your employee stock options so that they complement your life goals and financial plan.
Portfolio Management – We will monitor the asset allocation of your portfolio and monitor all of the underlying holdings in your portfolio. We will periodically rebalance the portfolio and also may adjust the investment mix to take advantage of market opportunities and to adapt to any changes to your personal financial situation.
Goal Tracking – We meet with you every six months to conduct a portfolio review and to monitor your progress towards achieving your personal and financial goals. We are always available to answer questions or address any financial issues or concerns by phone or in person between meetings.
Reporting – We provide quarterly reports that consolidate all client financial assets into one report (including 401(k) plans, IRAs, brokerage accounts, savings accounts, college savings vehicles, Trusts, etc.). In addition, our reports will present your total investment portfolio performance versus various market benchmarks.
The minimum annual fee for Wealth Management clients is $5,000 per year. The fee schedule for this service is shown below.
| Annual Fee | Assets Under Management |
| 1.00% | on the first $1 million in assets |
| 0.90% | on the next $2 million in assets |
| 0.80% | on the next $2 million in assets |
| 0.70% | Thereafter |
Fees are paid quarterly in advance. Please note that advisory fees paid to Blue Sky may be tax deductible. Please check with your tax accountant.
II. Portfolio Management Plus Service
Our Portfolio Management Plus Service is appropriate for individuals, couples and families with less than $500,000 in liquid assets who are looking for a comprehensive approach to portfolio management and financial planning. This service includes all of the features of our Wealth Management Service detailed above. One key difference is that portfolio review meetings for the Portfolio Management Plus Service occur semi-annually. Fees for our Portfolio Management Plus Service include an initial, one-time financial planning fee that will range between $1,500 to $2,500 depending on the complexity of the client’s financial situation. In addition, this service has an on-going annual management fee of 1.00% of assets under management. The minimum annual fee for the Portfolio Management Plus Service is $1,500.
Management fees are paid quarterly in advance. Please note that advisory fees paid to Blue Sky may be tax deductible. Please check with your tax accountant.
III. Portfolio Check-up Service
Our Portfolio Check-up Service is appropriate for individuals and families that may not be in need of a comprehensive financial plan and portfolio management service, but who could benefit from a complete portfolio review by an experienced advisor. The Portfolio Check-up Service involves four steps as follows:
- The advisor will discuss the client's investment time horizon and administer a detailed risk tolerance questionnaire to determine the client’s targeted portfolio risk level.
- Next, the advisor and client will have a one-hour meeting or conference call to discuss the risk questionnaire results, uncover all portfolio concerns and to review all existing client investment statements.
- The advisor will complete a comprehensive portfolio review. The output of this review is a new proposed client portfolio that includes full detail on asset allocation targets and suggested mutual funds and exchange traded funds (ETFs) researched and approved by Blue Sky.
- The new proposed portfolio is delivered and discussed in a final meeting at Blue Sky's office or via conference call. E-mail and phone support is provided for 30 days after the check-up is completed related to the advisor’s portfolio recommendations.
Please note that this service does not include implementation of changes, on-going investment advice, portfolio monitoring and management and is not meant to be comprehensive. The Portfolio Check-up Service has a one-time fee that can range between $900 and $3,000 depending on the complexity of the client's portfolio. Please note that fees paid to Blue Sky may be tax deductible. Please check with your tax accountant.
IV. Other Services
Other services and sessions with an advisor are billed at a rate of $250 per hour.
Service Programs for Institutions
I. Investment Consulting Service
Our investment consulting services are designed for small institutions like retirement plans, endowments, foundations and non-profit companies. We can provide:
- a review and a creation of your investment policy statement,
- a review and analysis of your asset allocation,
- advice on portfolio construction,
- assistance with investment manager selection,
- performance measurement and on-going portfolio monitoring, and
- investor education seminars.
Fees for investment consulting services are typically quoted as an asset based fee, but are sometimes quoted on a per project basis. Please call Blue Sky for more details.