Services

Our services are the means by which we transform capital and ingenuity into realizing our mission. Specifically, our services are directed toward investment activity to prepare client finances for retirement and to provide income for our retiree clients. We offer investment strategies for income needs in addition to investment strategies for accumulation needs or growth of capital (account growth). All of our investment strategies rely heavily on the reinvestment of generous dividends to compound account balances into geometric future growth over time. Geometric growth is the stuff of true wealth, for with patience and consistency $1,000 may grow into $2,000 in about eight years, $2,000 into $4,000 in another eight years, $4,000 into $8,000 in another eight years and eventually $512,000 into more than $1 million in just another eight year period.

If you have about ten to fifteen years to retirement, you will see the results of compounding in the income that you will eventually use, watching it grow as the years proceed to your retirement date.

If you are already retired, you will benefit from compounding by reinvesting a portion of the total amount of the dividends and interest your account generates, aside from what you take out as income. This partial reinvestment, partial cash withdrawal protocol provides both current income and rising future income to offset inflation.

Enhancing the Client Experience

All of our work is directed toward just one thing - enhancing your experiences with us in the pursuit of a better financial life. Toward that end, we enrich our money management services to include:

• A thorough interview at the outset of the client relationship to establish specific needs that our money management can address and to ascertain true tolerance for risk.
• Comprehensive and client-friendly account reports quarterly and annually.
• Annual teleconferences to review investment results and update our perception of client needs.
• Consultations as needed.

We recognize that we are but one of a number of firms clients may choose. Therefore, we want to go beyond effective money management by anticipating and responding to client needs thoroughly and without delay.

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Investment Strategies

Investment strategies maximize our effectiveness by creating easily differentiable cohorts, each with slightly different risk. We offer several distinct investment strategies to accommodate a variety of needs and tolerances. Through risk assessment, we select the strategy that best suits each situation. Contact us if you would like information on the historical returns for any of our investment strategies.

The income strategies employ an appropriate mix of common stocks, bonds, closed end funds, exchange traded funds and specialty securities within those headings that focus on real estate and commodities when they are attractive.

If you are decades from retirement, the accumulation strategies focus on a growth primary, income secondary approach. We also use these strategies for money set aside during retirement for long-term health needs - a type of self funding mechanism for long-term care.

Income Builder
Our most widely used income strategy, Income Builder balances the need for growth of capital and income with the need for stability of the account balance. We strive for income of at least 6% and growth of at least 3% on an average annual basis, for a total return of 9%%. We want to capture at least 80% of a market cycle's upside while experiencing less than 50% of its downside.

Income Guardian
Income Guardian is for people for whom ordinary account volatility is a painful experience. Income Guardian seeks to provide low volatility, or up and down movement of the account balance, while achieving annual appreciation of about 5% from dividends and interest and 2% from price appreciation of portfolio securities, for a total return of 7%. We want to capture at least 65% of a market cycle's upside while experiencing less than 35% of its downside.

Income Accelerator
Income Accelerator appeals to those who are less concerned about account volatility in pursuit of above average returns. Income Accelerator concentrates client investment in our best ideas, resulting in greater volatility and less diversification than Income Builder. Focused portfolios such as Income Accelerator offer an excellent opportunity for gain while still investing in the more stable arena of income securities.

Our accumulation or growth strategies use mutual funds to accomplish their objectives:

Wealth Builder
A moderate risk strategy for more adventurous investors, Wealth Builder seeks to beat the performance of the MSCI All World Index, with special consideration to keeping downside risk lower than that of the Index.

Wealth Guardian
Wealth Guardian is a more conservative and less volatile option than Wealth Builder. It is appropriate for more conservative clients and for the long-term health care needs of our retired clients. We strive for consistent investment results which beat medical inflation and average 6% or higher annually.

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Fees

Client fees are our sole source of income. Fees are charged based on the dollar amount in client accounts. All fees are subject to change without notice.

Account Balance	Fee
First $100,000 (rounded up)	1.25%
Next $400,000 ($100,000 to $500,000 rounded up)	0.95%
Next $500,000 ($500,000 to $1,000,000 rounded up)	0.75%
$1,000,000 and above (balance over $1 million)	0.65%
Minimum Fee - New Contributory Retirement Account (2 yrs)	$25
Minimum Fee - Regular	$75

To reward our clients that have had a continual investment relationship with us over the years, we have initiated a customer loyalty discount. The discount will be applied to the quarterly fee, based on the date the first investment is placed for the client or common billing relationship. For example, the annual fee for a new client investing $600,000 is $5,800, whereas the fee for a client with the same sized investment that has been with us for 10 years is only $5,220.

3% discount after 2 years

5% discount after 5 years

10% discount after 10 years

Fees may be deductible on income tax forms. Consult your tax advisor.

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