Frequently Asked Questions

Most people are not financial experts. They know that planning is vital, but don't have the time, the desire, or the expertise to make the tough financial decisions and effectively manage their financial resources. As a result, they are often unsure about whether they are doing the right things to meet their financial goals and secure their family's financial future. How about you?

Are your financial affairs in order or are you overwhelmed by their complexity? Do you have time keep up with each new tax law, investment opportunity, insurance product and financial planning strategy? Are you confident that you are on the road to financial independence or unsure about your family's financial future? Perhaps you could benefit from working with a financial advisor.

As your financial advisor, we can simplify your life and provide you peace of mind by:

Helping you understand the complex tax, legal and financial issues that affect you and your family
Helping you make smart financial decisions
Helping you organize and manage your financial affairs
Providing solutions for your financial concerns
Helping you develop and implement a plan to meet your life goals and aspirations
Helping to ensure your family's long-term financial security and independence
Serving as the quarterback of your team of legal and financial advisors
Providing and/or supervising all aspects of your wealth management and financial planning needs

In addition, we can help you understand the advice you receive from your accountant, attorney and other advisors, and coordinate it with our own financial planning and investment management expertise, so that you'll feel confident and have a clear direction to follow. If needed, we can also recommend experienced legal and financial professionals to meet your personal needs and objectives.

By working with our firm and relying on our knowledge, experience and expertise, you'll spend less time laboring over your financial affairs and more time doing the things you enjoy most in life. You'll know that your affairs are in order and that your family is financially secure; and you'll feel confident about your financial future.

Can't I do some of these things on my own?

In today's world of real-time quotes, $5 stock trades, round-the-clock financial news, cheap financial and estate planning software, and web sites that will help you find the cheapest life insurance, you might be tempted to do your own financial planning, manage your investments, buy your insurance or create a will and trust on your own, without professional guidance. Don't!

There's an old saying: "A lawyer who represents himself in court has a fool for a client." Unless you are 100% certain that you know as much or more than the professionals, it would be foolish to jeopardize your family's financial security by attempting to handle your financial and estate planning affairs on your own. The risk that you will overlook one small, yet critically important detail is just too great. And it's likely that you would not discover a mistake or omission until it was too late and the damage was already done. Investment mistakes can cost you money. Insurance planning mistakes can leave you uninsurable, without coverage to protect you and your loved ones, and without any income. Estate planning mistakes can cost your beneficiaries money in excess taxes, deplete your estate, and enable a lifetime of savings to end up in the hands of the wrong beneficiaries or worse—The IRS!!

Most legal and financial professionals have years of education and training, keep current with new financial products and strategies and changes in tax laws. They are also required to receive continuing education in their areas of expertise every year. A good estate planning professional will ensure that your estate is structured and handled in accordance with your objectives and values, and that no important detail is overlooked. An experienced insurance professional will ensure that you and your loved ones are adequately protected from every risk to your financial security and well-being, and that you purchase only the best and most appropriate coverage. There is a lot more to buying insurance than simply looking for the cheapest policy, which will rarely be the best, most appropriate policy for you.

In the late 1990s, the fact that you could almost throw darts at the stock pages in the newspaper to select stocks that would make you money gave many individuals the false impression that they were great investors, and that they could do better than the professionals. When the bubble burst, many of those investors lost more than half of their money; some lost it all. In the 1990s, you heard stories about day traders who were making millions of dollars in the stock market. In reality, statistics revealed that the majority of investors who opened accounts at day trading firms lost all of their money. Just because you can buy stocks cheaply and quickly and get real-time quotes and information does not make you a stock market or investment expert.

Still not convinced that you shouldn't do it on your own? Here's a quiz: Imagine that you are inheriting your father's $2,000,000 IRA and his brokerage firm mails you a check for $2,000,000. Do you 1) Deposit the check to your IRA? 2) cash the check or deposit the proceeds to your brokerage account? or 3) mark "void" on the check and send it back to your mother's brokerage firm? If you don't know why number 3 is the correct answer, you have no business doing your financial planning on your own, without professional help (call us for an explanation).

We often run across people who will say things to us like, "I don't trust financial advisors; None of them can beat the market." Foolishly, those individuals equate being a financial advisor with "someone who only recommends or sells stocks and mutual funds. And because ignorance is bliss, they tell us proudly that they are doing better than the professionals on their own. Yet, we can't help but wonder how many of those individuals are under-insured, have wills and trusts that need updating and have assets that are titled improperly. And while they brag about their ability to "beat the stock market," we wonder how many of them will make mistakes rolling over or taking distributions from their IRAs that will cost them or their loved ones thousands (maybe millions) of dollars in taxes that could have been avoided.

You have access to an overwhelming amount of financial information, low commissions on stock trades, and cheap financial and estate planning software. Unfortunately, the wisdom required to make smart financial decisions and ensure that your personal and financial affairs are in order is sold separately.

Can't I learn everything I need to know about financial planning in one of Suze Orman's books or videos?

Will Suze Orman look over your wills and trusts to be sure that everything is in order?

Will she keep you informed about new financial products and strategies, or changes in the tax laws, and advise you as to how they might benefit or affect you?

Can you call Suze Orman when the stock market drops 15% because you're concerned about your investments?

During the bear market, did she call or meet with you to review your goals and risk tolerance (as we did), to make sure that your investment portfolios were positioned appropriately?

Will she help you determine and select the best, most appropriate investments, insurance policies and financial strategies for your individual goals and objectives?

Does Suze Orman have a fiduciary responsibility to act in your best interest at all times, as we do? Do you have any recourse if her advice or information is outdated and ends up having an adverse affect on your financial situation?

Financial products, markets, laws, economic conditions and your personal and financial situation are always changing. Between the time that Suze Orman or your favorite financial author write one of their books and the time you read it, tax laws may have changed, new investments and insurance products may be available to you, and there may be newer and better strategies to help you meet your goals.

Personal finance books and magazines are full of generic, one-size-fits-all financial advice. In the real world, each person's financial situation, goals, constraints and risk tolerance are different. What's right for Suze Orman or your next door neighbor may not be right for you. Don't trust your personal and economic future to a book, magazine or video. Work directly with an experienced, trusted advisor.

How do I choose a financial advisor?

Selecting the right financial advisor for you and your family is the single most important decision you will ever make for your financial future. That's because your advisor will influence or control all of your financial decisions. The quality of the advice you receive will determine your standard of living during retirement and your financial security late in life when you need it the most.

A good advisor can help you minimize taxes, improve your investment returns, meet financial goals, maximize your financial resources, ensure that your financial affairs are in order and provide you comfort, peace of mind and life-long financial security. On the other hand, a bad advisor can cost you a fortune in excess or unnecessary taxes and jeopardize your family's long-term financial security. That's why it's critical that you know what to look for when choosing a financial advisor.

The Two Most Common Types of Advisors

There are basically two types of financial advisors: Fiduciary Advisors and Sales Representatives. Each has its own unique characteristics.

Fiduciary Advisors are licensed as a Registered Investment Advisor (RIA) with the SEC and/or the states in which they do business. They are held to the highest ethical standards and are required by law to put their clients' interests ahead of their own. They are also required to disclose any potential conflicts of interest at the outset of their advisor/client relationship and on an ongoing basis.

Most Fiduciary Advisors are compensated with fees to help their clients meet their financial goals. Most charge a flat fee for financial planning services and an an annual asset-based fee (assessed quarterly) for investment management. By charging an asset-based fee for investment management, the Fiduciary Advisor's compensation is closely tied to the performance he delivers for his clients in accordance with their objectives, risk tolerance and investment time horizon.

Most Fiduciary Advisors are independent and do not sell proprietary financial products. As independent advisors, they are free to recommend whatever products, services and strategies they believe will be most effective in helping their clients meet their financial goals. They also have greater liability for the quality of their advice.

Some Fiduciary Advisors are duly licensed as a Registered Investment Advisor and a Registered Representative of an independent or major brokerage firm. Most often, they charge a fee for the financial planning and investment management services they provide as an RIA and receive commissions for insurance and investment products sold through their affiliated broker dealer. As long as the advisor is a Registered Investment Advisor, he is held to the same high ethical standards as every other Fiduciary Advisor.

Winer Wealth Management, Inc. is a Fiduciary Advisor.

Sales Representatives are stock brokers and insurance agents who most often work for large, well-known banks, brokerage firms and insurance companies. They are paid commissions for selling you stocks, bonds, CDs, mutual funds, insurance and other financial products, usually without ever having to demonstrate the value of their recommendations or the financial products they're selling. At times, they can receive additional compensation for selling their firm's proprietary products or certain products from other financial services companies without having to disclose their additional incentive or compensation to you.

With "up-front" commissions for mutual funds and annuities ranging anywhere from 3% to as much as 10%, the average Sales Representative can earn as much from one product sale as the typical fee-based Fiduciary Advisor will earn over a five to ten-year period, no matter whether the product meets your needs and expectations or not. The more products they sell you, the more they can earn.

Although Sales Representatives are supposed to make suitable recommendations, they are not held to the same high ethical standards as Fiduciary Advisors. They are NOT legally required to put your interests ahead of their own, nor are they required to disclose potential conflicts of interest unless you ask. When you consider that the average Sales Representative must earn enough money to support himself and his family and must also produce enough revenue for his employer to keep his job, you can understand why it's so hard for Sales Representatives to put your interests ahead of their own. But that doesn't help you.

For years, the brokerage industry has fought against legislation that would require Sales Representatives who provide fee-based accounts to be held to the same high ethical standards as Fiduciary Advisors. In order to avoid that fate, the brokerage industry has agreed that its Sales Representatives will only make "recommendations" and will not provide "advice." In addition, brokerage firms that offer fee-based accounts are required by law to prominently disclose the following on forms, applications and advertising literature:

"Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits and our salesperson's compensation may vary by product and over time."

Although this information is supposed to be prominently displayed, it is most often buried in the fine print. Notice that Sales Representatives and the firms for which they work are not required to disclose conflicts of interest, your rights or their obligations unless you ask. Are you getting the picture?

Selecting the Best Advisor For You and Your Family

When comparing Fiduciary Advisors to Sales Representatives, it's easy to see why you should only work with a Fiduciary Advisor like Winer Wealth Management, Inc. Entrusting your life's savings and financial future to a Sales Representative who is unwilling or unable to put your interests ahead of his own and be held to the highest ethical standard could be hazerdous to your financial well-being and long-term security.

Fiduciary advisors are paid to help you meet your financial goals. Sales Representatives are not.

Fiduciary Advisors are required by law to put your interests ahead of their own and disclose all potential conflicts of interest. Sales Representatives are not.

Fiduciary Advisors' compensation is generally tied to your success in meeting your financial goals. A Sales Representatives' compensation is tied only to his success in selling you financial products and services. Sale Representatives are also rewarded with vice president titles and private offices for their success in selling financial products and generating high revenues for their firms, NOT for their success in helping you meet your financial goals. You and your interests are clearly secondary.

In addition, according to the statistics published in an article in the February 2006 issue of Registered Rep Magazine, the average Fiduciary Advisor (specifically a Registered Investment Advisor) is 10 times more likely to act in an ethical manner than the average Sales Representative. According to the article: “On average, the NASD brings more than 1000 disciplinary actions and cashiers 700 unfit brokers and broker dealers from the industry every year. By comparison, there were (only) 95 civil actions filed in federal court and administrative proceedings against RIAs (including asset managers) in 2005.”

Perhaps that's why, in spite of the sales and marketing advantages held by the large banks, brokerage firms and insurance companies, recent studies have shown that the vast majority of high net worth individuals and families prefer to work with independent Fiduciary Advisors like Winer Wealth Management, Inc.

As a Fiduciary Advisor, we are paid to provide you financial advice, help you achieve your financial goals and ensure your life-long security, NOT to sell you financial products. Because we are held to a legal, fiduciary standard, you can be sure that we'll put your interests ahead of our own, disclose any potential conflicts of interest and recommend only those financial products, services and strategies that we believe to be best and most appropriate for your individual needs and objectives.

Do I need more than one financial advisor?

It's surprising how many successful people do not have a single, comprehensive plan to minimize taxes, maximize portfolio returns, minimize the impact of market declines, protect their income, meet personal financial goals, increase the magnitude and multi-generational longevity of their wealth and ensure their family's life-long financial security. Instead, they prefer to maintain multiple portfolios at several different investment firms and work with multiple financial advisors. When asked why they've chosen this strategy, many say that they aren't comfortable putting all their eggs in one basket and would rather manage risk by diversifying among several different advisors and firms. Here's why that's a bad idea.

Why Having Multiple Advisors Increases Your Financial Risk

It would seem to make sense that diversifying your investments among a number of financial advisors with different investment strategies and philosophies would provide the same risk reduction benefits as diversifying your investment portfolio among different asset classes such as stocks, bonds, commodities and real estate. But investing that way doesn't lower risk, it actually increases it!

When multiple advisors are familiar with only a fraction of your wealth, their investment recommendations will be limited to just the universe they manage, and your overall portfolio will likely suffer. Advisors who operate independently of each other will be unaware of your total portfolio and cannot possibly recommend a mix of assets that's appropriate for your needs and objectives and protects your wealth and family over the long-term.

By comparison, if you hire one wealth advisor who works for a firm with an open architecture- meaning the advisor is not limited to only proprietary funds and managers but is able to buy any investment, fund or manager- you are more likely to own a more diversified portfolio that experiences less volatility. Why? Because one wealth advisor will be better able to manage the two biggest threats to your portfolio- an inappropriate asset allocation and unwanted overlap and conflicts- as well as having appropriate checks and balances among the investments, funds and managers you own.

When you spread your financial assets among more than one firm and financial advisor, you put yourself in the position of having to oversee all of your financial assets and affairs as if your were your own professional financial advisor. You would have to evaluate and monitor your overall asset allocation (all investments and portfolios combined) to be sure that it was appropriate and in accordance with your goals, time horizon and tolerance for investment risk. You would need to determine a frame of reference with which to evaluate the performance of each financial advisor and monitor their portfolios on an ongoing basis to ensure that each advisor and his individual investments and strategies were performing in line with your expectations. You would also need to monitor your portfolio for tax-efficiency to ensure that each advisor was implementing strategies to minimize taxes, especially short-term capital gains. At the end of the year, you would also need to work with each advisor to determine the best investments to sell for the purpose of tax-loss harvesting (realizing capital losses to offset realized capital gains elsewhere in your portfolio). As you can see, there are a lot of issues to consider when managing a large investment portfolio, not to mention all of the other critical tax, insurance, retirement, education and estate planning issues that must be addresses and managed on an ongoing basis. The greater your wealth, the more complex those issues become.

If you've determined that you don't have the time, the desire of the expertise to effectively manage your financial affairs and that you need a financial advisor, why would you implement a financial strategy (diversifying your investments among more than one financial advisor) that puts you in the position of having to be your own financial advisor? It makes no sense, increases your financial risk and could potentially jeopardize your financial success and security.

One Advisor, One Plan

The best strategy is to hire one experienced, knowledgeable and trustworthy financial advisor to oversee all of your financial affairs, help you manage your finances more effectively and develop a comprehensive plan to meet your financial goals and ensure your family's long-term financial security and independence. Even the world's wealthiest families believe in this concept and employ one independent financial advisory firm or "family office" to oversee all of their financial affairs.

Naturally, we at Winer Wealth Management, Inc. would like to be your one financial advisor and provide you comfort, peace of mind and life-long financial security.

THE FIRM

Do you specialize in working with any particular type of client?

Although we work with clients of all kinds, including individuals, families, trusts, foundations and corporations, the firm has particular experience in working with retired individuals; helping them manage their financial affairs, protect and preserve their wealth, fulfill life goals and aspirations, and ensure the transfer and distribution of their wealth in the most tax-efficient manner and in accordance with their goals and values.

Our clients are generally intelligent, successful and serious about doing whatever it takes to achieve their personal and financial goals and ensure their long-term financial security and independence.

Do you accept clients who live outside California?

Yes. We work with many clients located throughout the United States as well as in some foreign countries.

How do you work with these clients?

Our planning software is collaborative and Web-based, enabling us to work on-line with clients, regardless of location. We communicate regularly by telephone and e-mail. Additionally, forms, applications, newsletters, quarterly reports and other correspondence are sent via E-mail or fax. In the near future, we anticipate using Web-conferencing, which will enable us to provide our office presentation via the Internet. Additionally, clients who live outside California often find Los Angeles to be an interesting, sunny and enjoyable vacation destination.

Tell me about Winer Wealth Management

The firm is locally owned by Richard S. Winer (President and CEO). Mr. Winer is assisted by a highly qualified support staff. Although the firm makes use of its extensive Wealth Management Network of experienced, independent legal and financial professionals, as well as a wide range of economic and data sources, we do not depend on out-of-town experts to make decisions; the customized advice provided to our clients is based on the expertise of the firm’s principal and associated professionals.

Are references available?

Out of respect for our clients' privacy and anonymity, we do not allow prospective clients to contact or obtain references from current clients. However, we can put you in contact with a number of certified public accountants and attorneys, with whom we work closely. Many of them, as well as their family members, are also clients.

Can I review your investment performance over the last several years?

Prospective clients often ask to see our "composite" investment results. Regretfully, under strict AIMR (industry standard) rules designed to ensure fairness and comparability, we are not able to prepare a meaningful composite. The reason is straightforward: we do not have a "typical" client portfolio. Instead, each portfolio reflects the time horizon, return objectives, risk tolerance, and personal financial goals of the owner. However, in the absence of a composite, we can show the performance of the actual client portfolios we have managed. And, of course, we can show the performance of the investment sub-managers we have used over time. Prospective clients can thus observe the range of actual returns of specific portfolios and of the component elements often used in those portfolios.

How have you done during the current bear market?

Our innovative and effective growth strategies are designed to keep our clients invested in the best performing funds, ETFs and money managers in both bull and bear markets. Even during bear markets, there are areas of the global financial markets that do well. While not always easy, our goal during the current bear market has been to identify and focus our investment in those areas. As a result, our clients portfolios have held up quite well, at times making money on days when the markets were down.

Our conservative Lower Volatility Portfolio Strategy utilizes investments with a low correlation to one another as well as mutual funds that employ innovative and effective hedging strategies to reduce risk and volatility. Designed for conservative retirees and pre-retirees, this strategy's objective is to deliver stock-like returns with low bond-like volatility—to help clients sleep well and meet their financial goals during tubulent financial markets. This innovative and effective strategy delivered positive returns throughout the 2000-2002 bear market and throughout most of the current bear market.

What type of investment performance should I expect?

It's been our experience that most investors' expectations for future performance are unrealistic. Most are clinging to the hope that the stock market will generate 20% (or greater) annual returns year after year, as it did in the second half of the 1990s. Sadly, those who are expecting average annual returns on equities greater than 10-12% over the next ten years will likely be disappointed.

Because most of today's individual investors did not begin investing until the second half of the 1990s, their only frame of reference for returns is the bubble period and subsequent bear market. And with the bear market two years behind us, investors are back to their pre-bear market expectations. If you are one of those investors, consider the fact that the average annual return for the S&P 500 in the first half of the 1990s was only 5.45%. That's a long way from the 15-20% annual returns that many investors now expect from the stock market.

We believe that you should use the long-term historical returns for stocks and bonds as a guide in establishing your expectations for future performance for your investments. An aggressive investor could realistically hope to achieve average annual returns between 10% and 12%. Moderate growth investors could hope for returns in the 8% to 10% range, and conservative investors might hope for returns in the 5% to 8% range. There are, however, no guarantees.

After a thorough analysis of your financial situation, personal and financial goals, risk tolerance and investment time horizon, we'll help you determine realistic performance expectations and design an appropriate portfolio that will allow you to meet your individual goals and objectives with an acceptable level of risk.

How do you evaluate your performance?

While it may sound cliché, ultimately, we evaluate our performance based on how well we do in enabling you to meet your personal and financial goals, and in ensuring your family's long-term financial security and independence. It's important to remember that, to us, performance means more than just a rate of return on your investments. It's the result of effective, intelligent, comprehensive wealth management and financial planning.

Market-beating investment performance won't do you or your loved ones any good if the death of a spouse, an untimely illness or disability, or the need to pay for a family member's long-term medical care puts your family's financial assets and long-term financial security at risk. Our job is to make sure that never happens. If we can ensure your family's long-term financial security, enable you to meet personal and financial goals, and provide you peace of mind, then we have delivered the kind of performance to which Winer Wealth Management is dedicated.

Do you have an investment minimum?

Yes. To ensure that we remain able to provide the level of service that our investment management clients, existing and new, expect and deserve, Winer Wealth Management has established a minimum threshold for new discretionary investment management clients. That threshold is:

A minimum portfolio of liquid assets of $250,000 to be managed by Winer Wealth Management

We may, under certain circumstances, accept accounts under $250,000 with the understanding that the client intends to increase the size of his or her account to $250,000 within 18 months of inception and will add to his or her investment account on a regular basis.

Do you provide any type of investment advisory services for individuals who are unable to meet your investment minimum?

Yes. For an hourly fee, we provide comprehensive financial planning and/or investment advisory services, including asset allocation and investment and money manager selection. Clients for whom we provide these services may meet with us as often as they like, for the same hourly fee, to review their portfolio's performance, financial plan and to assess their progress toward meeting their goals.

COMMUNICATIONS

Will you consult with me when making trades?

Not generally. Occasionally, it will be necessary to react quickly to management changes or other situations we may encounter. The custodian will immediately provide trade confirmations and the trades will be reflected on the next monthly report from the custodian. Of course, we will discuss any changes as soon as practically possible.

Will I see a list of investments before they are purchased?

Absolutely. When we first work with a client, we will collaborate and establish an appropriate asset allocation. We then provide an Investment Policy Statement (IPS) that will include a detailed asset allocation. In those cases where we have information regarding a client’s current investments, we will provide our observations. Prior to implementation of the policy, we will discuss, in detail, the specific recommended investments we will utilize to implement the IPS.

Do you work with our accountant?

With a client’s permission, we will always work with their other advisors. In fact, we strongly advise our clients permitting us to work as a team on their behalf. Allowing us to speak with them directly and/or provide data and information assists in seamless handling of our clients’ financial needs. For those advisors with the appropriate technology, we can provide the advisor web-based access to much of our planning technology. Let us stress again: we initiate these relationships specifically upon permission from our clients.

Can I trade in my investment account with you?

Generally, we do not allow clients to trade in their investment account(s) that we manage. We will however, be happy to open a trading account for you to make your own investment selections and trades. We can even arrange for this service to be conducted on-line, if desired.

With whom will I be working?

Clients always work directly with the firm's principal, Richard Winer. When appropriate, we may also work in conjunction with one or more legal or financial professionals from within our Wealth Management Network. The Principal of the firm has overall responsibility for all accounts.

SECURITY/CONFIDENTIALITY

What about Internet protection?

We have instituted multi-layered protection in our office systems, including complex firewalls and anti-virus programs. We encrypt our communications outside of our office and our web-based software also has extensive security protocols.

I am worried about privacy and confidentiality. What can I expect from you?

Clients can expect our firm to be equally concerned. We are obsessive about client confidentiality. We have instituted a privacy policy that directs our actions on a daily basis. In addition, all staff members have signed a confidentiality agreement. Our recommended custodians and technology partners are equally committed to maintaining this confidentiality.

Do you hold my money?

No. We are registered investment advisors, not brokers. We hold no client assets. The only funds we receive from clients are the management fees. When given limited discretionary authority, we generally recommend the establishment of accounts at major low-expense brokerage firms. Most clients use TD Ameritrade Institutional Services, where our clients receive institutional pricing. All deposits are made directly by the client to the brokerage firm. Winer Wealth Management will never directly handle client assets.

How safe is my investment?

Each client account at TD Ameritrade is SIPC insured for cash and securities, up to the normal limits. In addition, TD Ameritrade carries unlimited additional insurance on every account. All other recommended account custodians carry both SIPC and additional insurance coverage.

What is Limited Discretionary Control?

Limited discretion is the authority our clients provide our firm relative to their investment portfolio. It authorizes the custodian of the client’s assets (e.g., TD Ameritrade, Schwab) to accept our instructions regarding purchases and sales within the account. As we receive no commissions or compensation of any kind from any account custodian, we cannot ‘churn’ (i.e., trade the account to benefit our firm through the receipt of increased commissions). Limited discretion does not allow us to have funds dispersed from the account, other than delivery to the account owner at their address of record.

COSTS AND FEES

How are you compensated?

For our financial planning, investment management and advisory services, we are compensated solely by fees paid by our clients directly to our firm. We receive no commissions or referral fees for these services.

Although Winer Wealth Management, Inc. does not sell insurance products, Richard Winer (a CA licensed insurance agent) receives commissions for the sale of life, health, disability and long-term care insurance products. To avoid any potential conflicts of interest, he is committed to carrying over his fiduciary responsibility as a Registered Investment Advisor to his insurance practice. He considers it to be his fiduciary responsibility to act in your best interest at all times and ensure that whatever insurance products he recommends are both appropriate and cost-effective. In addition, we will only recommend products offered by insurance companies rated A or higher by A.M. Best.

We charge an initial planning fee ranging between $500 and $10,000 based on the complexity of the client’s circumstances and requirements. For those clients who wish to establish a long-term relationship with our firm, we offer three alternative relationships:

Comprehensive Wealth Management (CWM). This is our comprehensive financial planning service. For CWM clients we plan, invest, and/or advise and monitor their total investment portfolio no matter where the funds are custodied (e.g., 401(k) plans, trusts, non-transferable assets) and over time, review and advise on other financial planning related issues (e.g., retirement planning, tax planning, estate planning, insurance). For CWM clients, we charge an annual retainer fee. This fee is based on the complexity of our client’s circumstances and the nature of the investment portfolios (e.g., size, number, location, restrictions).

Discretionary Asset Management (DAM). This is our traditional wealth management service. For DAM clients, we plan, invest, and monitor the assets made available to us. The fee for DAM clients is based on a percentage of assets under our limited discretionary control (see our current Fee Schedule)

Personal Financial Planning (PFP) on a hourly/as-needed basis. PFP is for clients who want financial planning or investment advisory services on a more limited, irregular basis. Some may require a full comprehensive written financial plan while others may want nothing more than a second opinion regarding their 401(k) or 529 plan investments. Our PFP services are billed on an hourly basis at the current rate of $125 an hour.

Are there other costs involved?

Yes, as with all investment related advice platforms, there are a variety of potential costs; however, because we are compensated for our investment management and advisory services on a fee-only basis, we sit ‘on the same side of the table’ as our clients. We are diligent in our effort to control all costs and taxes and provide clients with details regarding all the fees and expenses that may incur. These include:

Management fees, expenses and trading costs charged by individual mutual funds, separate account managers and other brokers or financial advisors whom may be selected to manage a portion of our client's assets. Returns reported by managers are net of any fees and costs.

Transaction fees. Occasionally we may utilize a mutual fund that is not in the No Transaction Fee Program at TD Ameritrade, incurring a $24 transaction fee for every purchase and sale of shares of that particular fund. Because we receive no portion of the transaction fee, you can be sure that we will only utilize a 'Transaction-Fee Fund' when we believe it is in your best interest to do so.

Short-term redemption fees. Any shares of funds held at TD Ameritrade sold within 90 days of purchase are charged a short-term redemption fee equal to one half of one percent of the dollar amount of the shares sold. Once again, because we receive no portion of the short-term redemption fee, you can be sure that we will never incur any short-term redemption fee unless we believe that it is in your best interest to do so.

We believe that we provide exceptional value relative to the total cost of our services and all related fees and expenses.

Why aren't you "Fee-Only?"

Technically speaking, Winer Wealth Management, Inc. does provide services on a "Fee-Only" basis. However, because Richard Winer receives commissions for the sale of insurance products as an independent CA licensed insurance agent, we do not claim to be "Fee-Only."

We provide discretionary investment management services for an asset-based fee and financial planning services for an hourly or flat project-based fee.

Advisors who work on a "Fee-Only" basis are not allowed to accept commissions of any kind. While most "Fee-Only" advisors claim to be free from conflicts of interest, that is not always the case.

From our experience, the selection of insurance products and Section 529 plans available to "Fee-Only" advisors is extremely limited. If we were "Fee-Only," there would be many quality financial products that we would not be able to offer our clients directly, such as health insurance plans from Blue Cross and Blue Shield, company retirement plans and annuities from companies like U.S. Allianz and John Hancock, which contain wonderful, unique living benefits and are only available through commissioned advisors. Many of the highest rated insurance companies, such as Guardian, Mass Mutual and Northwestern Life, only offer their life, disability and long term care insurance policies through commissioned agents and advisors. This means that there are often times when the best, most appropriate insurance policy, variable annuity or Section 529 plan may only be available through a commissioned advisor. In that instance, the "Fee-Only" advisor must decide whether to recommend a lower-cost, potentially lower quality product or refer you to a commissioned agent or advisor. This situation provides the potential for a conflict of interest. It can also cost you more money.

Consider the following example; One of our clients hired a highly respected "Fee-Only" insurance advisor to structure the life insurance portion of their estate plan and help them select the best, most appropriate insurance companies and policies. Their "Fee-Only" advisor was paid $250 and hour for his time and recommendations, which included a no-load (no-commission) policy from Ameritas and a more expensive, fully-commissioned product from Guardian, for which another advisor would receive a commission. Because of health issues, the client was unable to purchase the no-load policy and had to purchase all of their insurance from Guardian, which meant that their one policy would cost them more money, and a life insurance agent would receive a commission. When all was said and done, our client paid thousands of dollars to the "Fee-Only" advisor for his time and services and still ended up purchasing a fully commissioned insurance product. In other words, our client ended up paying two sets of fees. By working with a "Fee-Only" advisor, our client felt comfortable, and believed that the advisor would steer them to the best, most appropriate solution and financial products. However, they could have accomplished the same result and save thousands of dollars in fees by working with an equally experienced and trustworthy commissioned life insurance agent, instead of the "Fee-Only" advisor. In this example, our client felt that it was worth paying additional money in fees to feel that they were getting unbiased advice.

We do not believe that it is in your best interest for our firm to be limited in the financial products and solutions that we can offer you directly. Consequently, we offer a wide array of insurance products for which we are paid commissions. However, we do not charge fees of any kind for our insurance planning and advisory services. That means that you will never be forced to pay fees and commission for any financial product or service we provide.

Whether or not an advisor is "Fee-Only" or receives commissions, there will always be the potential for some conflicts of interest. However, unlike most stockbrokers and insurance agents, as a Registered Investment Advisor we have a fiduciary responsibility to act in your best interest in all aspects of our relationship. That is a responsibility that we take seriously, and that we carry over into all aspects of our business. We expect the same level of honesty and integrity from the firms and individuals with whom we do business, and from the advisors and firms we recommend to our clients.

How your financial advisor is paid is, in our opinion, less important than the strength of your relationship with your financial advisor, the value you receive, the level of comfort you feel, and the part that your advisor plays in helping you meet your goals and ensure your long-term financial security and independence.

How often is my account traded?

We do not generally ‘trade’ our client accounts. However, we do have a carefully constructed rebalance procedure. Specifically, we rebalance our clients’ accounts according to the dictates of the Investment Policy Statement that reflects their needs and circumstances. We will also make special trades for tax purposes, changes in investment strategies, changes in management or management style or for occasional tactical asset allocation purposes.

How often do you review my investments and my account?

We keep track of the mutual funds in each client's account on a daily basis. Separately managed accounts are also monitored on a daily basis. We monitor the managers in greater detail (e.g., cash positions, turnover, expenses, investment size, quality, maturity, as well as absolute and relative performance) on a quarterly basis. We review activities in our discretionary accounts on a daily basis, and allocations on a quarterly cycle.

How often will you meet with me?

We will meet with a client as often as necessary, but recommend that during the first two years, we meet at least quarterly. In any event, we provide our clients with comprehensive customized quarterly reports.

INVESTMENTS

What types of investments do you offer?

Actually, we do not ‘offer’ any investments. We are financial planners and investment advisors, not money managers. However, a significant part of our practice is focused on the design and implementation of customized investment portfolios. In the implementation of our investment recommendations, we employ, for the benefit of our clients, many of the world’s best money managers in a wide range of investment styles and classes.

As fee-only investment advisors, we are solely focused on the best interest of our clients, and hence, restrict ourselves to utilizing investments that have no commissions. In addition, we focus on selecting managers and strategies that are exceptionally cost and tax-efficient.

As an independent registered investment advisor, we have access to the entire universe of investment alternatives. We currently employ the following investments and managers:

Private fund that invests in S&P 500 futures
Separate account managers (stocks, bonds, options)

Exchange-Traded Funds (ETFs)
Institutional active and passive mutual fund managers
Public active mutual fund managers
Immediate and deferred, no-load, fixed and variable annuities (in specialized circumstances)

What is a separate account manager?

This describes a professional money manager who, based on criteria set by our firm, selects individual investments (i.e., stocks or bonds) for our clients. Thus, clients with a portion of their portfolio managed by a separate account manager own positions in individual bonds and/or stocks.

Over what period will my money be invested?

Money will be invested according to personal time horizons and asset allocation. Generally, for funds needed in three years or less, we will restrict investments to cash equivalents (e.g., CDs, money market) and short-term to limited-term bonds.

Why don't you implement investment plans by picking individual stocks?

While picking individual stocks can be fun and exciting, we believe that intelligent overall portfolio design and asset allocation are more important to your long-term investment success than the selection of individual stocks and bonds. We provide the smartest solution for each client using "best of breed" opportunities, regardless of their source. That's why we provide a wide array of alternatives (many of which are not available through other financial advisory firms) when constructing a client's overall investment portfolio. We may use hedge funds, outside separate account managers, large, institutional managers or mutual funds not normally available to individual investors (or which are, in fact, closed to new investors) because in many cases, this is the most cost-effective way to construct effective, globally diversified portfolios.

Why should I hire you, when I can hire these same managers on my own?

Often it is not possible, because of account minimums or restricted institutional access. But, more important, hiring a separate account manager or buying a specific mutual fund is only one...and, ultimately, a relatively unimportant piece...of our entire array of services. Our clients hire and retain us as advisors because of a coordinated matrix of services we provide. We serve our clients as comprehensive wealth managers, providing personal financial planning services, including the management of investment portfolios.

As we have said before, lifetime financial success is not driven by investment performance or the selection of individual money managers. Our comprehensive wealth management and financial planning services are the key ingredient that will ensure that all of your financial affairs are in order, help you achieve your personal and financial goals, and, ultimately, provide you peace of mind and financial security throughout your lifetime.

I feel comfortable managing my own investments. Can I just use Winer Wealth Management for financial planning services?

Yes. We would be happy to assist you with any area of your financial planning.

REPORTING

How often will I get reports from you?

Although custodians send reports with transactions and other information on a monthly basis, we provide a comprehensive customized quarterly report, along with updated reports at anytime subject to our client’s request.

What do you provide for me at year-end for tax purposes?

Although the custodian of the assets is the official record keeper, our firm downloads complete data regarding all of the accounts under our discretionary management on a daily basis. Utilizing sophisticated, professional portfolio management software enables us to continually monitor our clients’ transactions and tax basis. Consequently, we can provide our clients, and/or their tax preparer, detailed tax-related information (e.g., realized and unrealized short- and long-term gains, tax lot accounting, taxable and tax free income) at any time.

If you have further questions not reviewed in this section, please call us at (818) 673-1695, for more information. You may also contact us by E-mail at info@winerwealth.com.

Frequently Asked Questions

©2010 Winer Wealth Management, Inc. All rights reserved.