Service Programs for Individuals & Families
Blue Sky Wealth Management Service | Portfolio Management Plus Service | Financial Planning Services
I. Blue Sky Wealth Management Service
Our Blue Sky wealth management service is suitable for individuals, couples and families with $750,000 or more in liquid assets who are looking for a comprehensive approach to portfolio management and financial planning. The program starts with an in-depth review of your life goals and financial goals. Next, obstacles, concerns, problems and beliefs about money and investing are extensively explored and discussed. We work together with you to solidify your goals and document them. We then complete a comprehensive review of your financial situation that will include the following features:
Current Portfolio Review - We will do a complete analysis of your current portfolio (includes all regular brokerage accounts, mutual funds, 401(k) plans, IRAs, Trusts, CDs, savings accounts, college savings vehicles, annuities, etc.) and discuss your asset allocation and investment choices.
Client Risk Assessment – Each client will complete a risk tolerance questionnaire in order to fully explore his or her tolerance for risk and expectations for future returns.
Structure New Portfolio – Based on your life and financial goals, comfort with risk, etc. we will suggest a new optimal portfolio for you. We will suggest a target asset allocation and recommend investment vehicles for each asset class. We will then help you implement these proposed portfolio changes.
Retirement Planning – We will discuss the lifestyle you wish to enjoy during retirement and the age at which you wish to retire. We will prepare an analysis to determine what amount of investments and additional savings are necessary to achieve your goals. Where helpful, we will develop scenarios to help analyze how best to achieve your goals and any tradeoffs that might need to be made among them.
Cash Flow Analysis – We will make suggestions on how you can review and analyze your current spending patterns. Together we will determine the level of discretionary income available for investment or other uses. The cash flow work will help us with long-term planning by providing a baseline with which to estimate your future spending needs.
Investment Tax Analysis – We will address whether your portfolio is properly set up to take full advantage of opportunities to minimize federal and state income tax liabilities now and in the future.
Education Funding Analysis (if applicable) – We will prepare an analysis to determine what amount should be set aside to fund the education you desire for your children or grandchildren. Additionally, we will present alternatives for savings vehicles and help you select the most appropriate vehicle given your specific needs.
Insurance Review – We will address whether you have adequate life, disability, and long-term-care insurance. We will also review your property and casualty insurance to determine whether you have both adequate and cost-effective coverage. We will review your current insurance policies and make suggestions regarding the appropriateness of your coverage within the framework of meeting your goals. We will recommend independent insurance agents that specialize in the areas mentioned.
Estate Planning Review – We will review your existing estate planning documents (wills, trusts and powers of attorney) to ensure that they reflect your wishes and determine the need, if any, for any additional estate planning action. We will recommend independent attorneys who specialize in drafting estate planning documents, if needed.
Stock Option Planning (if applicable) – We will assist you with decisions regarding your employee stock options so that they complement your life goals and financial plan.
After the initial review is completed, on an on-going basis, we will actively monitor both your portfolio and your progress towards your goals as described below:
Portfolio Management – We will monitor the asset allocation of your portfolio and monitor all of the underlying holdings in your portfolio. We will periodically rebalance the portfolio and also may adjust the investment mix to take advantage of market opportunities and to adapt to any changes to your personal financial situation.
Goal Tracking – We meet with you periodically to conduct a portfolio review and to monitor your progress towards achieving your personal and financial goals. We are always available to answer questions or address any financial issues or concerns by phone or in person between meetings.
Reporting – Clients will have access to the secure Blue Sky client portal through any web browser and iPhone and Android apps. All client assets are consolidated and available to view in one location in real time. The client portal shows portfolio performance, growth in assets, portfolio allocation and top holdings. Clients can also access custodian statements and annual tax forms through the client portal.
The minimum annual fee for Blue Sky Wealth Management clients is $7,500 per year. The fee schedule for this service is shown below.
| Annual Fee | Assets Under Management |
|---|---|
| 1.00% | on the first $1 million in assets |
| 0.90% | on the next $2 million in assets |
| 0.80% | on the next $2 million in assets |
| 0.70% | Thereafter |
Management fees are paid quarterly in advance.
II. Portfolio Management Plus Service
Our Portfolio Management Plus Service is appropriate for individuals, couples and families with less than $750,000 in liquid assets who are looking for a comprehensive approach to portfolio management and financial planning. This service includes all of the features of our Wealth Management Service detailed above. Fees for our Portfolio Management Plus Service include an initial, one-time financial planning fee that will range between $1,500 to $2,500 depending on the complexity of the client’s financial situation. In addition, this service has an on-going annual management fee of 1.00% of assets under management. The minimum annual fee for the Portfolio Management Plus Service is $5,000.
Management fees are paid quarterly in advance.
III. Financial Planning Services
Our Financial Planning Services are appropriate for individuals and families that may not be in need of a comprehensive financial plan and ongoing portfolio management, but who could benefit from a review of one or several areas of their personal finances by an experienced advisor. Fees for Financial Planning Services are quoted on a project basis. The minimum fee for Financial Planning Services is $5,000.