FAQ
We’ll start by asking you a question: How have your investments performed over the last several years? It is vital that you know the performance of your investments. If you don’t know or haven’t received this information from your current investment professional, contact them and insist they provide you this information. Ask them how your portfolio has performed in comparison with the S&P 500.
We understand it can be difficult to challenge your current advisor, but remember that it is your hard-earned money, and you should be aware of how your accounts have performed.
Koenig Investment Advisory can help you with this situation by calculating your returns from the year-end statements your current investment firm has provided.
How does Koenig Investment Advisory measure the performance of my account?
When a client opens a new account, all information is entered into Centerpiece, a performance tracking system. Centerpiece tracks deposits, withdrawals, interest, and dividend income and produces monthly, quarterly, and since-inception performance data. Reports are retrieved via a password-protected website accessible only by Koenig Investment Advisory.
What is a “managed account”?
A managed account represents a portfolio of securities driven by the objectives of the personal investor. Managed account clients give Koenig Investment Advisory authority to buy and sell investments without requiring advance authorization. Clients receive monthly reports showing account holdings and individual asset valuations. All client buy-sell activity is immediately available electronically and within one week in written format. We provide a full summary recap of all activity monthly.
What is the S&P 500?
The Standard and Poor’s 500 (S&P 500) is an index comprising 500 different stocks. This index represents all major sectors of the US economy and is periodically rebalanced by Standard & Poor’s. The S&P 500 is the best benchmark for the US stock market.
How do I know you are not taking extraordinary risk to achieve the outstanding performance in my portfolio?
The broad stock market (S&P 500) is assigned a beta rating of 1. Beta is a commonly used benchmark of volatility. Our subscription service to mutual fund research data provides three- and five-year beta numbers on mutual funds held in Koenig Investment Advisory portfolios. The majority of no-load funds held in client accounts have a beta rating at or below the broad market. Portfolios may contain one or two funds with a beta slightly above the broad market and other funds with a beta well below the broad market.
What types of investments do you use in client accounts?
Portfolios above $250,000 in value generally use a mix of individual stocks, no-load mutual funds, exchange traded funds (ETFs), master limited partnerships (MLPs), and individual bonds as warranted. Portfolios below $250,000 are typically invested in a mix of mutual funds and EFTs.
Do you allow accounts of lesser values—such as savings accounts for grandchildren or newly created IRAs with just a year or two of contributions?
From time to time, clients do note a need to open an account that is too small to be managed as a registered investment advisor account. We maintain a brokerage relationship apart from Koenig Investment Advisory in order to service such accounts. A client who finds a need to open an account of a lesser dollar value can opt to work with us as a broker for any smaller accounts they need to open. As these accounts grow in value, they sometimes become manageable as advisor accounts and are moved over to the advisor side of the business. It must be noted that both for logistical and legal reasons, broker-based accounts are separate from business with us as financial advisors. This portion of our overall business is very small.
Does Koenig Investment Advisory perform any other services?
We provide our clients with a complete review of your financial health by performing financial planning, retirement and distribution planning, and estate trust planning. However, we do recommend that you utilize other professionals such as CPAs, tax and estate attorneys, and real estate brokers as a complement to our services.
Do you receive any fees for purchasing specific mutual funds or stocks in my account?
Any mutual funds purchased are no-load funds. We receive no fees for purchasing mutual funds or stocks. Koenig Investment Advisory earnings are limited to the management fee charged as regulated by the SEC and calculated on the percentage of total assets managed. We do not earn fees from any other source. This fee-based approach aligns our interests with your interests.