Frequently Asked Questions (FAQ)
What is a Fee-Only Registered Investment Advisor?
A Registered Investment Advisor (RIA) is regulated by the Securities and Exchange Commission and/or the particular state(s) in which they conduct business. Patriot Asset Management, Inc. is registered with the State of New York and files FORM ADV through the SEC IARD system. Form ADV is a standardized brochure that provides information about the RIA, including the education and experience of our principal, investment management style used by Patriot Asset, the current fee schedule in effect, legal actions (if any), and other information which an individual should review prior to hiring an investment manager. For its services, Patriot Asset charges an investment management fee based on the market value of the investment management account.
What makes a Registered Investment Advisor different than a broker?
As a Registered Investment Advisor, Patriot Asset is required to act as a fiduciary. A broker or registered Representative is held to the suitability standard.
Fiduciary standard of care means doing what is best for the client. That means your interests come before our own and we disclose any conflicts of interest, if they were to occur. The portfolios we construct put your interests above all else. When selecting investment products for your portfolio, we concentrate on how those investments are going to help you reach your financial objectives, not how much commission a particular product generates. You will see in our FORM ADV that we take no compensation for referrals and receive no incentive for selling a particular product.
Suitability standard of care usually means an advisor need only suggest products that are suitable for your objectives, your income level and your age. Also, no disclosure is required. A broker, or Registered Representative, is required only to recommend investments that are “suitable” for you.
RIAs acknowledge their fiduciary status to their clients. Fiduciaries are held to a higher standard of professionalism than are non-fiduciaries. Most RIAs manage portfolios of investments on a discretionary basis. Client assets are typically held at an independent custodian. RIAs may be fee-based, commission-based, or both. Patriot Asset only charges an investment management fee. Potential clients should carefully compare how their investment manager or broker will be compensated for services provided.
Why would I use Patriot Asset rather than invest through mutual funds?
With a Patriot Asset investment advisory relationship, your specific goals, your investment and risk tolerance and other personal circumstances are considered when creating your investment portfolio. Communication is critical and must be two-way. A mutual fund has its own investment style and does not adjust its portfolio based on your needs. We do. There are other advantages such as tax managed accounts, personal communication and the ability to change your portfolio based on your changing needs. That nimbleness cannot be accomplished with a mutual fund.
Do you have a minimum account size?
At this time, we have no account minimums. Investing is an important part of an overall financial plan. Patriot Asset offers a wide range of products designed to meet your needs.
How often to you communicate with me regarding my investment portfolio?
Each client receives a monthly and/or quarterly statement from our custodian, Schwab Advisor Services. The portfolio manager at Patriot Asset is always available by phone, e-mail, or in person to talk about your portfolio or any other questions you may have. Client meetings are scheduled regularly.
How safe is my money when Patriot Asset manages my portfolio?
Patriot Asset does not take possession or custody of any of client assets. They are held by Charles Schwab. The securities that make up your portfolio are subject to market risks: government actions, business risk, inflation, global economic conditions all can effect your portfolio. All portfolios managed by Patriot Asset are subject to market value fluctuation and may decline in value.