Frequently Asked Questions
Our clients come from a broad distribution of professional backgrounds, but they tend to have an appreciation for analysis and high standards of client service. Most are currently in the accumulation or early retirement phase of their life cycle and looking for long term growth or conservative enhanced income investment strategies. Our services are generally best suited to individuals who have an aggregate investment portfolio in excess of $250,000 or an annual household income in excess of $100,000.
No. Although the bulk of our clients reside in Wisconsin, Denarius Wealth Management has clients throughout the U.S. with some having lived abroad as expatriates. Regularly scheduled conferences and reviews will be conducted in-person or via the Internet using GoToMeeting. For other correspondence, clients can E-mail, call, fax, and mail or upload documents to our secure Client Web Portal. In between client reviews, we have detailed information on a client’s asset allocation, account performance, recent account activity, and any financial plans and any important documents uploaded to our online Client Web Portal. Clients can directly access and trade their accounts online and receive comprehensive statements and tax documents from them directly. Links to various custodian with which we work on provided on our website.
We’ll start with a prospective client by conducting a 15-20 minute phone call to answer any questions they have about our team and to get a basic overview of their situation. After that call, we’ll generally send clients a basic packet – an overview of our firm’s capabilities, a financial needs assessment, a risk assessment questionnaire, a financial document checklist, as well as other information. If we mutually decide that it makes sense, we’ll then establish a login for you on our Client Web Portal, and begin aggregating your accounts and other financial information. We’ll then have a no-obligation, in-person meeting to discuss what issues you’d like us to address, and what your needs are from a planning and service perspective. At this point, a prospective client will decide whether they wish to proceed, and we will sign an engagement and/or investment management agreement and draft an investment policy statement.
Our firm was founded as a truly independent financial advisory team to help clients invest, make important financial decisions, select financial products across all their accounts. We want to provide the best investment alternatives – not just what a given firm had to offer – and give clients technology that allowed them to monitor all of their assets everywhere. We believe that after-tax investment returns are the single most important aspect of a client’s financial management. We seek to outperform through long term discipline and a commitment to established principles. We see ourselves as personal CFOs; providing our clients with guidance, support and service to manage their financial affairs, while they concentrate on strategy and enjoy the fruits of their hard work.
We take a team-based approach at Denarius Wealth Management, so every member of the team will be involved in your account; however, your primary point of contact will be your advisor, Chadwick Oldenburg.
By focusing on what we can control and minimizing unnecessary risks, we believe a client obtains the best chances of a high rate of return over the long term. Accordingly, we manage discretionary investment portfolios in a broadly diversified way and, rather than trying to “beat the market”, we seek to outperform a client’s targeted risk benchmarks by controlling costs, minimizing taxes and concentrating on a few basic factors. We’ve found that most mutual funds, separate accounts and alternative investments are not worth the management fees and risk of under-performance.
We believe that the best strategies are simple, uncomplicated and traditional. For most of our clients, we build investment portfolios composed of individual, blue chip, global stocks; selective, mid-cap and small-cap stocks; investment-grade bonds; Exchange-Traded Funds (ETFs) for targeted, sector exposure and risk diversification; and limited investments in other fund-type vehicles, which generally include layers of expenses that detract from returns. To determine the balance between various security types, we draw upon the asset allocation models of several leading independent research firms to determine the balance between eleven different asset classes. Based on client interviews and a standardized questionnaire, we’ll then recommend a risk profile and custom asset allocation model (based on our firm models) to a client in an Investment Policy Statement (IPS) or Investment Recommendation. After the initial execution of a portfolio, on an ongoing basis, we will review your risk profile and monitor your asset allocation and rebalance, exercising discretion on the timing of trades.
Generally, no. Depending upon tax, lending or professional considerations, it may be advisable to retain certain assets. We may plan to transition out of them over time or “work around” them. If you establish that there are certain positions you want held, we will maintain and report on them in your portfolio.
For clients that wish to have specific holdings or engage in speculation, we’ll establish a separate “Special Trading Account” and assist them in executing established techniques or conduct research to help them develop their own custom investment strategies. You may also indicate that certain stocks or bonds be included (or excluded) from your portfolio. In all cases, you will receive notification by mail within 3-5 business days of each investment change, and you are always welcome to call and discuss the changes.
In addition to online access and regular statements that you’ll receive from your custodian, quarterly reports on your performance and holdings are provided by Denarius Wealth Management. Ongoing, regular client reviews are the core part of our portfolio management process and we seek to play a role in every aspect of a client’s financial picture. We’ll discuss your current holdings, account performance, tax situation and other sources of income to maintain your risk profile and manage trading activities. Outside of regularly scheduled conferences, clients can expect a return call within 24 hours and usually the same day. In between client reviews, we have detailed information on a client’s asset allocation, account performance, recent account activity, and any financial plans and any important documents uploaded to our online Client Web Portal. Clients can directly access and trade their accounts online and receive comprehensive statements and tax documents from them directly. Links to various custodian with which we work on provided on our website.
In general, the frequency of communication will vary through various phases during a client’s relationship. During the earliest phases of a client relationship or periods of transition (e.g., employment negotiations, retirement, sale of company), communication can be several times a day. At other times, communication can become less frequent. At a minimum, we want to meet with a client annually to review their accounts and whether the risk of their portfolio is still appropriate. We understand how unexpected a need for critical advice information can be, so we maintain a 24/7 approach to client service and reporting. For simple questions about your account – most analytical reports can be ordered and delivered within a few hours and clients should expect immediate access to Chadwick Oldenburg at critical and unexpected times and to normally be able to speak to any Principal on short notice during business hours.
We’ll help you review your company stock plan and design an optimal exercise and sales strategy. For company stock, we’ll generally establish separate segregated accounts or continue to hold the shares at their employer’s captive broker. For hedging risk or income generation, we’ll execute options strategies for clients through their preferred platform and coordinate regulatory filings with captive brokers. We are familiar with Rule 10b5-1 trading plans and Rule 144. We are familiar with all of the major monetization tools available to company executives.
We will help you locate appropriate financial institutions for your corporate cash, coordinate with your tax advisors and will recommend benefit and retirement plans for your you and your employees. We can also review benefit plans and recommend individual or group policies for life, disability income, long-term care, and health insurance. For closely-held businesses, buy-sell agreements should also be considered when creating a business succession plan. Policies can be purchased “net of commissions” which can reduce a client’s premiums or increases coverage. We, as an independent fiduciary, provide an experienced and qualified investment advisor to oversee the specific selection and management of the company’s retirement plan investment options for the plan sponsor, the employer. Retirement plans can vary on the fees and services that they provide and should be reviewed annually.
Yes. Firstly, your goals, experience, tolerance for risk, and your preferences will be the determinants of the investment strategy we recommend. As we select specific investments, we will explain to you the purpose of each one, and you will have the opportunity to modify any strategy we plan to employ.
You may engage us on either a “non-discretionary” or “discretionary” basis. Non-discretionary means that we must receive your approval on each and every investment change or trade before we make it. Discretionary means we can and may take an investment action on your behalf without getting explicit approval in advance, provided the action is consistent with the overall investment goals we’ve outlined.
We typically don’t separate the investment management and financial planning processes. Included in our portfolio management and client service approach is comprehensive financial planning and analysis, which includes any retirement, education or stock option planning for our clients. We use state-of-the-art financial planning software that allows us to collaborate with our clients online and use account aggregation technology to continually update your accounts, regardless of where they are held. We will coordinate with outside insurance, accounting or brokerage professionals to purchase financial products and report tax information. In some cases, additional charges may apply for certain specialized services.
We will help you select a lender or broker to secure any loans and coordinate the application process, handling any administrative details. We may charge a small fee associated with this activity.
We have four sources of revenue:
- We charge an investment management fee based on a percentage of the value of the assets we manage for clients. We accept no commissions or other forms of compensation from investment product providers or financial institutions. The fee is quoted as an annual percentage fee, and is billed monthly in advance by taking the value of managed assets at the end of each previous calendar month and applying one-twelveth of that annual percentage fee. For example, if the annual fee is 1%, then 1/12 of 1% is applied to each ending monthly account balance. The fee is deducted directly from the client account or accounts. This includes all planning, execution, analysis, performance reporting and coordination with tax advisors.
- We charge project-based (as opposed to hourly) financial consulting fees to individual clients for activities unrelated to managed accounts. We will quote a service charge for estate planning, mortgage or other activities unrelated to investment management. For example, we charge generally charge $3000 to $10,000 coordinate an estate plan depending on complexity.
- Corporate clients can pay us for educational or financial consulting services on an hourly, fixed fee, or retainer basis.
- On insurance policies, we are paid either an hourly or fixed advisory fee by the client for researching, analyzing, and recommending the policy.
Yes, we can handle scheduled or unscheduled distributions and provide expense management services on an ongoing basis. This is generally included as part of our management fees, but may charge a nominal financial consulting fee, depending upon the expense and complexity of the transaction. Family office services are also available for an additional fee arrangement.