How are we compensated and when do we get paid? We charge a management fee based upon a percentage of the value of the assets we manage. The fee is an annual percentage fee (generally 1% or less), and is billed quarterly by taking the value of the managed assets at the end of each calendar quarter and applying one-fourth of that annual percentage fee. Each quarter Charles Schwab & Co withdrawals the fees from our clients’ accounts.
We do not receive commissions from investment product providers or financial institutions.
Current minimum for new clients: $1,000,000 of assets under management.
Our fee schedule for assets under management is as follows:
On the first $500,000
On the next $2,000,000
On the next $2,000,000
On balances over $4,500,000
What type of clients do we work with? Our clients are diverse, located across the country, and have a broad range of backgrounds, ages and objectives. The majority of our clients are high-net worth individuals and small businesses. Currently, our minimum for new clients is $1,000,000 of assets available for management (including retirement plans).
How will we communicate with you about your account(s)? Each time we generate transactions in your account(s), you will receive transaction confirmations directly from Schwab and correspondence from us describing the trades. In addition, you will receive a monthly statement from Schwab and a monthly email from us called “MAM Commentary”. This monthly email discusses the performance of the stock market and any changes in our strategy. Additionally, you will receive a quarterly report from us that contains a more detailed analysis of the performance of the stock market, the performance of your account(s), the performance of MAM accounts in aggregate, and our current investment strategy.
What if you want to leave McCarthy Asset Management, Inc.? Our advisory agreement provides for termination at any time, for whatever reason. There are no penalty fees or deferred charges.
Who can benefit from this service?
All assets managed by MAM are held in Charles Schwab & Co. Institututional accounts. If a new client has an existing Schwab account, we complete a Limited Power of Attorney form that will convert the account into a Schwab Institutional account. If new accounts are needed or assets need to be transferred over to Schwab, we then fill out the necessary paperwork as well.
Will you be able to view your account(s) online? Yes, Charles Schwab & Co. provides online access to your account(s). In addition, we provide secure access to your account(s) through the Client Vault login on this Web site.
In addition to portfolio management, what other services are provided? We are available to answer questions and provide advice regarding your personal financial and tax situation. Furthermore, at no cost, we offer to create and update your Net Worth Analysis annually and a Retirement Analysis every two to three years. In addition, for an hourly rate, the tax planning and tax preparation services from Stephen P. McCarthy, CPA® are available.
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