What is a Registered Investment Advisor (RIA)?
An RIA is a firm of professional advisors with extensive experience in financial investments.  The firm is registered with the Securities & Exchange Commission (SEC) and must abide by the regulations and rules of that Commission.

Why do I need a Registered Investment Advisor?
Successful investing requires time, knowledge, inclination, experience, access to extensive research, and a disciplined plan.  Most individual investors do not have all of these characteristics and do not consistently adhere to the discipline and work that is required for successful investing.  Many investors prefer professional advisors so their investment decisions will be made without emotion and based on objective reasoning.

Why not use a stockbroker?
Because there can be a built-in conflict of interest based on how they are compensated.  Traditional stockbrokers are salespersons who follow the advice of their brokerage firm about what to sell to clients.  They depend on sales commissions for their livelihood.  Summit Asset Management is compensated by a fee based on the amount of investments managed.  We focus on the same goal as you -- growing your investments.   Our buying and selling is based on what will accomplish your goal, not on commissions.  We make no transaction fees, sales loads or commissions.   Our clients are the only ones who pay us.  

Why select Summit Asset Management as my advisor?
Because we employ a method of investing called asset allocation – in essence, putting your eggs in a number of baskets.  Asset allocation is used by many large institutions and wealthy families to manage their substantial investments.   We spend our time monitoring the markets for value and making sure your money is invested by talented money managers -- masters in their areas of specialty.   We also handle all your service needs and work with your other advisors such as attorneys and CPAs.  Because our investment in you is extensive, we require clients to have a minimum of $100,000 of assets under our management.

What type of investments will Summit Asset Management make with my money?
In most cases we invest your money in top performing no-load mutual funds selected from the thousands of funds we monitor.   The basic categories are stock funds, fixed income funds and money market funds.   For investors with substantial assets we may also select managers who manage individual accounts rather than a mutual fund.  We may also invest in alternative investments such as hedge funds, real estate and private equity partnerships.

How does Summit insure my money is safe?
We help you open brokerage accounts in your name at Charles Schwab & Company, one of the largest and best known brokerage firms.  The Schwab Institutional division serves as the custodian for  clients of registered investment advisors like Summit.   Through a limited power of attorney you authorize Summit to select investments within your account, but Summit never has custody of your assets, other than to deduct our management fee.   Checks and stock certificates are always made to Charles Schwab.  Schwab enforces strict controls to make certain that you alone can authorize money moved from the account.

How much activity will there be in my portfolio?
Buy and sell activity will vary depending on economic conditions and the performance of the managers.  We will reallocate assets between managers, or replace managers, as we deem appropriate to reach your goals.  We compare the performance of your portfolio with broad market indexes, and compare the performance of managers with other managers of the same specialty.    

How will I keep track of what you are doing?
Three ways:  You will receive confirmation notices of all transactions from Charles Schwab.  You will also receive monthly Schwab account statements.  Quarterly, Summit will send you performance reports that show how your account is invested and how it has performed for the period.  We also include our commentary letter.  You may also call your Summit portfolio manager anytime you have a question.

How much will it cost for Summit Asset Management to be my advisor?
Our annual management fee for each family is 1% of the asset value up to $500,000.  For amounts greater than $500,000, the fee declines on a percentage basis.  Balances over $500,000 to $1 million are charged an annual fee of .8%.   Balances over $1 million to $3 million are charged .5%.  Balances over $3 million are charged .25%.   Thus your “blended” rate will vary depending upon the size of the assets we manage.  Financial planning services are usually provided for an hourly fee, approved in advance by the client.