FREQUENTLY ASKED QUESTIONS
If you have questions that are not answered here, please send me an e-mail by clicking here. You can also contact me by calling (972)386-0384 and talking to Lauren Drewry (ext. 202) to arrange a time for us to talk over the phone.
These are the questions that most people have before becoming a Prudent Money client.
Bob, how can you help me?
I can help people in 1 of 3 ways.
1) Investing and Managing Money
My clients depend upon me to invest and manage their money.
I have found that most of my investment clients found themselves in one of the following situations before becoming a Prudent Money client.
- Left a company and need to rollover a 401(k) plan
- Not happy with their current financial advisor
- Received a lump sum of money and need direction
- Have investments spread out over many accounts and need organization, an investment strategy, and a management strategy
2) Hourly Fee Planning and Consulting
Many times people just need advice. I have developed a program where I can help people strictly on an hourly fee basis. This is for someone who needs advice or direction on financial and money issues. I can help in the following areas:
- Retirement Goal Planning – I implement my benchmarking system as a way to help you stay on track!
- College Planning – I can help you determine the best type of account and help set your college planning goals.
- Estate Planning – I can help you determine the right amount of life insurance for your family. I can also refer you to an attorney for any legal help.
- Debt Planning – I don’t offer debt consolidation. However, I can help you determine your options and develop a game plan.
- Boundary planning – I will teach you my boundary planning system. It is a substitution for budgeting. I don’t believe in budgeting!
- Small Business Consulting – Through the years, I have consulted with business owners on a variety of different issues.
- 401(k) risk assessment – I can conduct a risk assessment and recommend the best strategy for your company retirement money.
3) As a Resource
Whether you are a client or a Prudent Money listener, I am available as a resource as well as to refer you to resources. For my clients, I am always available to find resources for you. For listeners and anyone part of the Prudent Money family, Ask Bob is always available for an answer to a question. I personally answer every e-mail.
Most importantly, I am always available for an initial consultation over the phone to assess your situation at no cost. The objective is to determine if I am a fit for your needs.
Bob, how are you compensated?
I get compensated from fees charged for money management or hourly consulting. The fees come straight out of the investments and clients don’t have to write separate checks.
Unlike most financial advisors, I am completely independent. I believe that the fee-based approach is the most objective, client-oriented way to handle investing and managing money.
Bob, who do you work for?
I work exclusively for my clients. This has been the motivation for being independent and registered with the Securities Exchange Commission as a Registered Investor Advisor. I don’t have sales quotas to meet or a sales manager to keep happy. It is real simple. I work for a win/win situation. If my clients are not happy, then they can leave. We both have something to lose.
Bob, do you have a minimum account size?
I want the freedom to talk with anyone who desires to be helped. As a result, I don’t set out to limit my services through account minimums. I just want to hear your story and see if I can help you. If I can’t, I want to figure out who can. Although there are account minimums on various programs, there are still good solutions for everyone.
Due to being independent, we have the flexibility to adapt to your situation rather than having you adapt to our minimum requirements.
In other cases, it will make sense for us to consult with clients on an hourly basis. The bottom line is that we want to make sure everyone has the opportunity to receive help in some fashion.
How was your performance during the 2008 financial crisis? Did you have losses like everyone else?
We were very blessed (and thankful) to have made money for clients last year. As I said earlier, I use a proprietary model in my investment management. Depending on your risk level, you would be invested just like the model or similar to the model. My main model had a 12.25% positive return last year before management fees. For the first quarter of this year, the model was positive by 4.72% before fees (please see disclaimers below).
No investment management system is foolproof. At the same time, I have put years of research into my methodology and believe it is a good system to protect and grow money.
I have heard it said many times that there was no place to hide last year and everything lost money. That is simply not true. There are always places to make money. If someone is losing money, there is someone on the other side of the transaction making money.
Who should consider being a client?
My traditional investment management system is designed for accounts $50,000 and above. However, we do have programs for as little as $10,000 initial investments. It is for anyone who is not happy with their advisor’s buy and hold approach or for those who want to have their money managed. It is ideal for those with an old 401(k) plan at a prior place of employment or who have been laid-off.
What are your fees?
Prudent Money Financial Services charges fees for the management of investments. These fees are based upon the investments under management and calculated quarterly. The management fees are determined according to the following schedule:
Assets Under Management |
Annual Fee Not to Exceed |
$50,000 to $500,000 |
1.50% |
$500,001 to $1,000,000 |
1.00% |
$1,000,001 to $2,000,000 |
0.85% |
$2,000,000 and above |
Based on Situation |
For accounts under $50,000, we have other managed account alternatives.
Investing in the Prudent Money Management Model involves certain risks, including in all or some cases leverage, liquidity concentration, non-diversification, market, and investment technique. Moreover, there is no guarantee that the Prudent Money Management Model will achieve a positive outcome. These risks can increase volatility and decrease performance.
The Prudent Money Management Model is not a mutual fund nor is it a fund of funds strategy as defined by the SEC. It is an investment strategy.
It is important to note that the Prudent Money Management Model may or may not be suitable for all investors.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s account, when redeemed may be worth more or less than the original cost.