Frequently Asked Questions
- What is "fee-only" wealth management and why should that be important to me?
- What is a "fiduciary" and why is it important that you are one?
- Is there some way I can check on your business?
- Wealth management sounds like a lot of work!
- Who can benefit most from your services?
- How do you select investments for a client?
- Why should I pay someone to manage my investments when I can do it myself?
- What are some good questions to ask an advisor? Or, what are some other questions I should ask you?
- Why would Bernie Madoff's schemes not work at Wichita Wealth Management?
- I just want advice. However, I see that you only offer financial planning services/advice for clients who engage you for wealth management. Why is that?
1. What is "fee-only" wealth management and why should that be important to me?
The National Association of Personal Financial Advisors (NAPFA) defines a fee-only financial advisor as
"one who is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product. Neither Members nor Affiliates [of NAPFA] may receive commissions, rebates, awards, finder's fees, bonuses or other forms of compensation from others as a result of a client's implementation of the individual's planning recommendations …"
Since Wichita Wealth Management is fee-only, conflicts of interest regarding compensation are largely removed. (From time-to-time, WWM receives non-monetary services, software and education from various vendors.)
2. What is a "fiduciary" and why is it important that you are one?
The Kansas Securities Regulations say:
"An investment adviser or investment adviser representative is a fiduciary and shall act primarily for the benefit of its clients." 81-14-5 (c)
A fiduciary should provide written disclosure to the client, prior to the engagement, of any conflicts of interest which will or reasonably may compromise the impartiality or independence of the advisor. This is important to you because it means that we must act in your best interest. "Are you a fiduciary?" and "Can I see it in writing?" are good questions to ask any firm where you get financial advice.
3. Is there some way I can check on your business?
Wichita Wealth Management is registered in Kansas as a Registered Investment Adviser. Jeffory L. Stukey and Jonathan R. Harner are Registered Investment Adviser Representatives. As such, we must comply with a host of regulations designed to protect the consumer. Following are some ways to check on us.
The U.S. Securities and Exchange Commission (SEC) has an "Investment Adviser Search" feature on its website. You can check on Wichita Wealth Management on the SEC website by selecting the "Firm" button. Then, type in "Wichita Wealth" and select the "Search" button. Next, select "Get Details" for Wichita Wealth Managment. The "View latest Form ADV filed" button will take you to information about the firm. If you select the "Part 2 Brochures" button, it will take you to more information about the firm and about adviser representatives working at the firm.
You can verify an individual's CFP® certification and background on the CFP Board's website.
Our Form ADVs, regulatory documents we file with the State, are also available on the Legal Notices page of our website.
4. Wealth management sounds like a lot of work!
The piece of wealth management that takes the most effort on your part is initially setting up accounts (and the optional initial financial plan, if you chose one). After the initial engagement, it shifts primarily into maintenance mode. So, even though it may seem like a lot of work at first, the good news is your chances of reaching your financial goals are greatly enhanced when you partner with a fee-only, fiduciary wealth manager.
5. Who can benefit most from your services?
Individuals or families with at least $500,000 in investable assets who are seeking financial peace of mind and want help managing their financial life can benefit most from our services. We serve people at all income levels and from all walks of life.
6. How do you select investments for a client?
We are research-based and use a disciplined approach in selecting investments. We build model portfolios for various risk tolerances and account types, using no-load (no-commission) funds. Then, based on the client's risk score and account type, we select a model portfolio that best fits the client's needs.
7. Why should I pay someone to manage my investments when I can do it myself?
In our experience, we have found that about one in five investors have the ability, background, knowledge, time and desire to manage their own investments. A few thoughts …
- Do you have the time to stay current on investment strategies, tax regulations, economic conditions and investment research?
- If you are married, what will happen if you die first? Will your spouse know what to do?
- Fee-only, fiduciary, wealth management is much more than managing investments; it encompasses all things financial.
8. What are some good questions to ask an advisor? Or, what are some other questions I should ask you?
9. Why would Bernie Madoff's schemes not work at Wichita Wealth Management?
Some of our clients ask this question. And for the ones who don't ... we like to answer it anyway, because it is on most peoples' minds. See Why Bernie Madoff Would Not Work Here.
10. I just want advice. However, I see that you only offer financial planning services/advice for clients who engage you for wealth management. Why is that?
Our mission is to deliver financial peace of mind for life's journey. Over the years, we have discovered that we best accomplish our mission through ongoing wealth management. With wealth management, we are there for the client every step of the way and can help the client implement the plans we jointly develop.