What is an Investment Advisor?
An Investment Advisor is an investment professional that works for you to create an investment portfolio that is best suited to meet your individual needs. Of course not all Investment Advisors are created equal. It is important to choose an Investment Advisor who can meet your specific needs and deliver solid returns with good service.
What are the advantages of becoming a Mainstay Capital Management client?
Your account will be managed by a professional money manager. We monitor the financial markets every day and regularly review your portfolio to insure that an optimal blend of investments is being used to meet your individual goals. This provides our clients with many benefits, including more time to pursue what really interests them.
What makes you different from many others who offer similar services?
We have no conflicts of interest that could adversely affect your portfolio performance. Unlike many brokers and other financial advisors, we receive no compensation from brokerages or mutual fund companies for investing in their funds. Our only goal is to find the best investments available to meet your objectives.
How many offices do you have?
Three. We have offices in Grand Blanc, Michigan; Troy, Michigan; and Naples, Florida.
What is your minimum account size?
Currently our minimum account size is $200,000 (for non-401k accounts), although under some circumstances we will accept accounts less than $200,000. More important, however, than satisfying a minimum account size criteria, we are looking for long-term client relationships. It is important to us to establish a relationship with our clients where we are satisfied that our investment style will meet your needs over the long run.
What approach to asset allocation and portfolio development does MCM use?
Our strategy is based on a long-term disciplined approach to investing. After reviewing your Client Profile and completing the client interview process, we can develop a portfolio and asset allocation strategy to meet your individual needs and tolerance for risk. We use tactical asset allocation in our ongoing management of your portfolio. This means, as we expect changes in market conditions, we will shift your asset mix and specific investments to maximize opportunities and manage downside risk. Mainstay is a “go-anywhere” asset manager, which means we screen mutual funds, ETFs, stocks, bonds, and other securities to find the combination of investment options we feel works best at meeting the objectives of your portfolio. Mainstay also offers an "all-ETF" portfolio strategy for clients interested in this focused approach.
How do I withdraw money from my account if I need it?
Your money stays at Schwab, TD Ameritrade, or another custodian, and you withdraw it as you would from any custodial or brokerage account. In addition, accounts can be set up with check writing privileges, debit cards, and other features.
How will I know what is happening in my account?
You will continue to receive trade confirmations directly from Schwab, TD Ameritrade, or another custodian of your choice, as you do now when a trade is made in your account. You will also continue to receive regular account statements from Schwab, TD Ameritrade, or another custodian. In addition, we will send you a detailed, easy-to-read quarterly statement showing your asset allocation, account balances, and multi-year portfolio performance. We will also include a quarterly review of the markets, our strategy, and an outlook for the months ahead. Furthermore, you still have access to your account balances and other account information at anytime using your custodian’s toll-free number or their website.
How are my accounts protected?
Cash balances held in a brokerage accounts are covered by the Securities Investor Protection Corporation (SIPC) for up to $250,000. TD Ameritrade is a member of the securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). More information can be found at www.sipc.org
. TDA provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SIPC. Supplemental coverage is paid out after the trustee and SIPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SIPC and London insurers. The TD Ameritrade supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of the securities.
Charles Schwab also provides protection for securities and cash through the Securities Investor Protection Corporation (SIPC). Accounts of Charles Schwab & Co., Inc. (including those held by clients of investment advisors with Schwab Institutional®) are insured by SIPC for securities and cash in the event of broker-dealer failure. Additional brokerage insurance - in addition to SIPC protection - is provided to Charles Schwab & Co., Inc. accounts through underwriters in London. Schwab’s coverage with Lloyd's of London and other London insurers, combined with SIPC coverage, provides protection of securities and cash up to an aggregate of $600 million, and is limited to a combined return to any customer from a Trustee, SIPC, and London insurers of $150 million, including cash of up to $1,150,000. This additional protection becomes available in the event that SIPC limits are exhausted.
Will you provide advice or manage investments in my 401(k), IRA, and other accounts?
Certainly. We will be glad to provide advice on any of your investments. We have managed account programs for all types of investment accounts including 401(k)s, 403(b)s, IRAs, annuities, and non-retirement accounts.
I have heard rolling over my 401(k) to a “Rollover IRA” can be beneficial. Do you agree?
Rolling over your 401(k) account to a “Rollover IRA” is a non-taxable event that can significantly increase the investment options available for your retirement savings. For instance, the network we utilize for IRA and non-retirement accounts has thousands of investment options available. Call us toll-free at 1-866-444-6246 to discuss your eligibility for a Rollover IRA.
What are your fees?
Clients pay a one-time account set up fee and quarterly management fee based on a percentage of assets under management. The complete fee schedule is shown in the MCM Investment Advisory Agreement.
What are the available methods for payment of fees?
Quarterly management fees are withdrawn from the account on a quarterly basis. This method of payment eliminates any “out-of-pocket” expense for our services. Quarterly management fees can also be charged to a credit card or paid by check if desired.
What if I decide to cancel my relationship with you?
There is never any obligation to stay with our program. So in the unlikely event that you are not completely satisfied, you may terminate the relationship at anytime by notifying us immediately.
How do I get started?
It’s easy. Simply click here for a free information kit
or call us toll-free at 1-866-444-6246.