Eclectic Associates is a “fee-only” advisor. This means that we do not receive commissions or fees from the products we recommend to our clients. By refusing any compensation other than client fees, we are better able to provide unbiased financial advice and work in our clients’ best interest.
Eclectic’s Investment Advisory Service covers a wide range of individual services. Please note that our fee discussed below is all inclusive. The following is a summary of the services we provide for our clients:
- Financial planning advice
Financial planning is a process of identifying goals, identifying where you are currently, and charting a course to achieve these goals. With our experience in this area, we are able to help clients articulate their goals, examine their current status, and make realistic projections for the future.
- Investment management
Present investments and recommended future investments will be analyzed with regard to how they fit with your comfort level of investment risk, cash-flow needs, liquidity, desired growth, diversification, taxes and other aspects of your financial circumstances. Recommendations will name specific investments. The analysis and your goals will be discussed with you, as well as given to you in writing. Changes or additions will be recommended only if advisable.
Assistance in making investments is provided for as long as you remain a client. Eclectic does not take possession of your money. You always maintain control over your investments.
Investment reports will be furnished at least four times a year. Recommendations will be given should we see areas where we think changes could be made to better meet your objectives.
While we cannot guarantee results of investments, we will notify you if we feel changes should be made.
See Investment Philosophy page.
- Retirement planning and review
Whether you are already retired or plan to work several more years, having a realistic projection of your retirement income can be very helpful in setting expectations. The resources available to you for retirement, or potential retirement, will be reviewed. Projections will be made of: (1) your living expenses during that time, and (2) estimates of moneys available to meet those expenses at that time. This investigation will include an analysis of your retirement benefits, investments, Social Security, and the effects of inflation. Questions such as, “How much can I spend without jeopardizing my future?” will be considered. Should areas need improvement, we will make recommendations to you.
- IRA distribution and planning
The IRS has consistently changed the laws regarding required minimum distributions. We stay up to date on these laws and calculate these distributions every year for persons over 70 ½ years old.Persons under 59 ½ years old may also need to withdraw from their IRA accounts. We will help explore options available without incurring the 10% early withdrawal penalty.
- Educational funding advice
Education costs will be projected in the areas you wish considered (for your children, yourself, or others). Recommendations will be made to assist in meeting these needs. An analysis of the different types of college savings plans will be included. These include Section 529 plans and Coverdell IRA accounts.
- Tax planning
Past and current income tax circumstances will be reviewed. Strategies to minimize income taxes for the present and the future will be explored. This will involve both procedural methods and investments in line with your objectives and personal preferences.
- Estate planning review
Your existing wills and estate planning will be compared with your desires. Where advisable, strategies intended to accomplish your objectives, or reduce estate costs and delays will be presented.
Fees
The annual fee for Investment Advisory Services is based on the total dollars for which investment advice is sought. Subsequent annual fees shall be based on the account’s market value at the start of the new fiscal year. The annual fee will be prorated for additions and/or withdrawals (other than planned periodic “living expense” withdrawals).
Fee schedule:
Investment Advisory Services: (annual charge)
First $1,000,000 = 1%
Next $2,000,000 = .75%
Next $2,000,000 = .50%
Amounts after and above $5,000,000 = .35%
Setup charges: (one-time charge)
The setup charge is $2,000. It covers the initial analysis, allocation, and setting up the Account in Eclectic’s record keeping system. This charge is assessed at the beginning of our working together.
Individual Fixed Income Investments:
For individual fixed income investments, such as individual bonds and certificates of deposits, which are planned to be held until maturity, the first year’s fee is as shown above. Subsequent years’ fees are 0.35% of the value of those types of investments. This does not apply to mutual funds since they do no have an expected maturity date. The balance of Client’s investments are billed according to the previously shown fee table.
Minimum Investment Amount $400,000
Payment schedule:
One-third of the annual Investment Advisory Services fee is payable four months in advance. The setup charge is billed in the beginning and as new amounts are added. No fee is due upon signing of the agreement. Eclectic will bill you for the amount owed after delivery of the written financial plan.
Carl J. Camp, CFP
Carl Lachman, CFP
Scott Rojas, CFP
Russell W. Hall, CFP
David K. MacLeod, CFP
Masako Sumita
Travis McShane
