Frequently Asked Questions
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What is an Investment Policy Statement?
The Blueprint for Your Investment Program
Your investment policy statement is the blueprint for your investment program. To understand its importance, imagine a house that’s been built without a blueprint. Only the finest materials were used. The crafts people who worked on it were highly skilled. Nonetheless, there are serious problems. Maybe not all the rooms have doors.
The roof doesn’t extend over the whole structure. The foundation is shaky. In short, it’s not likely to withstand heavy weather. Similarly if you invest without establishing a clear investment policy, you may have the best money managers, but still fail to achieve your overall goals.
The investment policy statement is written to help you, your consultant, plan beneficiaries and other affected parties understand your investment goals. Generally, you and your consultant work on it together, drafting and redrafting it until the language is clear.
What does Risk Tolerance mean, and how do I know how risky I should be with my money?
By nature, the stock market fluctuates up and down. There’s typically a tradeoff between an investment strategy that has more risk, with the potential for more return, and a strategy that has less risk but will most likely not have a high return over time.
Your risk tolerance depends on how willing you are to take additional risk, in order to give yourself a chance for higher returns. Gauging your risk tolerance can be difficult, but it’s extremely important. That’s why, during our onboarding process, we’ll ask you how you feel about fluctuations in the market, how long you plan to have your money invested, and what kind of return you’re expecting, along with many other questions designed to help you understand your risk tolerance.
I’ve heard it’s important for my investments to be diversified. Are they diversified if they are all invested with CCAM?
Yes. At CCAM we think diversifying your investments is one of the most important parts of a good financial plan. We build our portfolios so that your money gets spread out over thousands of companies in multiple segments of the market.
We use actively managed mutual funds to get exposure to large, medium and small companies, both in the U.S. and abroad.
If you are a more conservative investor or need income from your portfolio, we use a combination of actively managed bond mutual funds, individual tax-free municipal bonds, and guaranteed interest insurance contracts to hit your saving and income goals.
Why should I choose to work with a CFP® professional over another financial advisor?
To earn the CFP® designation, an advisor must take and pass 6 collegiate financial planning classes, along with a board exam. Then, they must work for 3 years in the field of financial planning or for 2 years under another CFP® professional. To hold the designation, the advisor must also agree to a strict ethics code and agree to be a Fiduciary to their clients. That means they agree to always act in the best interest of the client.
When you work with a CFP® professional, you can be comfortable knowing that your advisor meets stringent education, experience, and ethics requirements, and is committed to being a top tier advisor.
What if I’m not sure what I need? Do you charge for a consultation?
We don’t want there to be any barriers between you and a bright financial future. Because of that, we never charge for an initial consultation. If you’re not sure where to start, just give us a call, or send us a message using the form below. We’d be happy to set up a time to talk about your current situation and how we may be able to help.
How do I get started?
Just give us a call or reach out using the form below to set up an initial consultation. On the call, we’ll talk about your current situation, any needs you may have, and how CCAM may be able to help. We hope to hear from you soon! Contact us today.
Do you have another question that we haven’t addressed?
Feel free to reach out any time, and we’ll answer as soon as possible. Contact us today.
How much do your services cost?
Our fee is calculated by taking a percentage of the assets that we manage for you. Depending on the size of your account, your fee will be between 1% and 1.5% of your assets that we manage. In other words, if you have a $100,000 account, your fee will be $1000 per year, or $250 per quarter.
How do I pay my fee?
Your fee is taken directly out of your designated investment account. You do not have to send in money for you quarterly fee.