Further, the conservative investments that many retired pilots chose did not justify paying money management fees. Mr. Steele is capable of traditional portfolio management with 50 associated money managers from Lockwood Financial Group, the largest independent provider of individually managed accounts. As one of Lockwoods 390 advisors his philosophy is "if you cannot add value to a portfolio than you do not deserve a fee."
We can arrange assets using modern portfolio theory, an expansion of the 10% cash, 40% bonds and 50% stocks. When an investor follows traditional investment methods, they will accrue traditional investment results. If this is satisfactory to a client, we will accomplish it with the establishment of a financial plan. Each plan must fit the clients personality. If it is too volatile or unproductive it will not meet the clients needs.
Mr. Steele does not believe in mutual funds for those interested in high performance. Historically, 90 % of mutual fund money managers have under performed the markets. In 1996 Hedge funds money managers out performed the markets. Careful selection of the correct Hedge fund is required.
Rather, we can design a limited portfolio of stocks that historically have performed in a way best suited to the clients' goals. Further, bonds are traded rather than held for a higher return.
Alternative investments are used to balance the portfolio and increase return probability. Mr. Steele is a follower of technical analysis rather than fundamental analysis. Depending on some clients goals market neutral and hedging strategies are used to equalize risk of the market. We can trade equities on the long and short side with the goal of increasing value in rising and declining markets. Each account is individually designed and managed. If the client is averse to risk then we follow traditional methods. If the client is not risk averse than active management seeking absolute rather than relative returns are sought. Mr. Steels' personal philosophy is "if you cannot beat the market you do not belong in this business." He has said "it is my goal to manage all the retired airline pilot funds in the country based on our ability to design portfolios that meet the clients needs and risk tolerance."
Computers are used extensively. Most research that took weeks to compute can be done on computers in minutes today. The addition of mathematical models and back testing with computers has simplified portfolio design. Access to information is now immediate. Stop losses and hedging methods are in effect when initial orders are placed on active accounts.
We negotiate fees for services with each client. Simple financial plans are relatively inexpensive and generally are referred to a certified fee only planer. Such plans do not use the skill and abilities of the firm and will always under perform the market. However, where we actively manage money with the clients' consent the minimum fee will never be less than .7 percent of the assets under management plus commissions. Mr. Steele maintains relationships and licenses with various Broker Dealers and Future Commodities Merchants occasionally he shares fees or commissions with these companies. However, we reveal the relationships and any unresolved conflicts at time of employment. Clients may select any Broker or related services of their choice.
For assignments that do not end in thirty days such as active money management as opposed to initial portfolio design there is a 30-day money back guarantee less cost incurred.
Estate planning is of great concern because most of an airline pilots wealth is contained in deferred plans that are subject to destructive taxes. Key to a determination of the methods to use to pass on this tax deferred wealth is whether the pilot needs all of the deferred funds or only income. With proper planning they may eliminate or significantly reduce all taxes. This planning accomplishes the transfer of wealth as though the deferred funds where not taxed.
Long term care expenses that Medicare does not cover can destroy the best estate plans. Proper insurance should be considered an estate plan's protection from failure.