FAQ's

Q:  Who is Invest Smart USA, Inc?

A:  Invest Smart USA is a Fee-Only Registered Investment Advisor in Scottsdale, AZ.  We are a privately owned firm, managed and controlled by Robert Stock.  We work primarily with individuals, families, and business owners with the management of their personal wealth and the development of their long-term financial plans. Our goal is to help our clients build financial plans and a portfolio of assets that can last a lifetime.  

Q:  How Do We Charge?
A:  As a Fee-Only Registered Investment Advisor, we charge an investment advisory fee to manage our clients’ money, to aid them with their financial planning to help  them reach their financial goals, and we do not earn commissions of any kind or receive any types of finder fees or referral fees. The fee is based on a percentage of the assets being managed and is generally paid quarterly in advance directly (in most cases) from one or more of their managed accounts.  We believe this creates a straightforward relationship that is clear, transparent, and lacks the conflict of interest that can be present when product sales make up part of the equation.  

Q:  Why should I use a Fee-Only Registered Investment Advisor (RIA)?
A:  Fee-Only Registered Investment Advisors have a fiduciary responsibility to provide advice and to choose investments that are in your best interest. This means that neither the advisors nor the firm receive any commissions for the investment or planning recommendations they make to you.  They do not accept compensation from any brokerage firm, mutual fund company, or insurance company. They are only paid by you, through your standard investment advisory fee.  This approach is a reassurance to you that they truly represent you with no conflicts of interest. Simply put, we believe that the greater an advisor’s dependence on commission income, the greater the potential for conflict. In the end, that conflict can cost you both in out-of-pocket expenses and in the quality of advice you receive.  As an Invest Smart USA client, you only pay us a fee that is based on a percentage of your assets under our management. The fee includes all the services we offer so you receive the maximum benefit of working with a registered investment advisor, which goes well beyond just investment advice.  This fee structure also provides you with full transparency and no surprises; you always know exactly how much you will pay for your financial services. 

Q:  What is the difference between Fee-Only and Fee-Based?
A:  Fee-only financial planners are registered investment advisors with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales.  Fee-only advisors have fewer inherent conflicts of interest, and they generally provide advice that is more comprehensive.  Many also carry professional designations, which hold them to strict codes of professional and ethical conduct.

Conversely, fee-based advisers may charge both fees and commissions based on the products they sell such as insurance, annuity, mutual funds, or even a separate fee for the development of your financial plan.   

Q:  How can I tell if a particular financial advisor is right for me? 

A:  Deciding whom to entrust with your life savings is not a decision you should make lightly.  All financial advisors are not equally experienced, educated, skilled or qualified.  

Probably the most important consideration to make initially is the advisor’s personality and mindset. Be sure that you feel comfortable with him or her and that he or she really listens to what you have to say. Your advisor should ask questions about your individual circumstances and make you feel secure that your answers are genuinely understood.  

Part of that initial introduction to help you become more familiar with the team at Invest Smart USA is to review our biographies. This information will not only tell you about our team’s education and past work experience, but also something about who we are as people and how we work with our clients. You will find this to be a good starting point to know if you would like to work with Invest Smart USA.

Another consideration may be an advisor’s approach and incentive. Advisor firms typically have different investment philosophies that guide their approaches to managing assets. Some will attempt to outperform the market by trying to predict movements in the market or specific stocks for the purpose of timing adjustments of your asset allocation. Others will steer you toward the purchase of the specific products they happen to sell. There are some substantial differences in how advisors are paid, and you should always be aware of where that payment comes from. These differences could significantly influence the advice you receive and the way your investments may be managed and perform over time.  

Ultimately, you want to choose an advisor you can become comfortable trusting and who is on the same page with the philosophy you believe best suits your goals and needs .  

Q:  What services are available to me? 

A:  The Invest Smart approach provides you with a comprehensive way to plan for and achieve your goals. We will work to help you to:

· Protect and grow your portfolio through an investment philosophy that fits your needs.  

· Make wise strategic decisions to mitigate your annual taxes.  

· Look for the most tax-efficient way to pass your assets on to your heirs, while keeping with your wishes.  

· Review your personal lines insurance coverage to determine whether it is sufficient to protect your wealth against catastrophic loss and other vulnerabilities. 

· Review your employee benefits package and help you decide how to use what you have available to best suit your needs and goals.

· Setting up and regularly monitoring your financial plan to meet your future goals.

· Help you develop plans for future needs such as education, retirement, travel, and major purchases.

· Manage your company sponsored retirement plans such at 401(k), 403(b), TSP, and Variable Annuities in an ERISA compliant fashion. 

· We provide you with your very own, free Personal Financial Website to allow you to monitor and adjust your financial life on a daily basis on your computer, laptop or other devices.

Compare these advantages to working with advisors that limit their services to just recommending investments.  

In addition, we work with your current CPA or tax preparer, estate planning attorney, insurance agents, and other professionals where needed.  If you don’t have an existing team to help you we can provide recommendations to professionals who have worked with our clients for many years. You can rest assured that we will coordinate with your professional team to ensure everyone stays up to speed on your goals and needs.  

Q:  Is there a minimum portfolio size to work with Invest Smart? 

A:  Invest Smart USA does not have a minimum portfolio size. Those who choose to take advantage of our comprehensive financial planning services may be just starting out or they may have saved a substantial amount of assets over their working years. Invest Smart USA works to provide a significant amount of care, attention, and account monitoring. Even if your investments are currently smaller, we still encourage you to let us help you get started down the road to financial success.  In most cases, with a free initial consultation, we are able to evaluate your situation and make realistic recommendations to help you achieve your financial goals.  We are happy to do this whether you end up working us or with someone else.  We look forward to meeting with you and will help you in any way we can.     

Q:  Who holds my money? 

A:  Accounts managed by Invest Smart USA are held at independent, qualified third-party custodians.  We work with large, well-known national and international custodians such as Charles Schwab, TD Ameritrade, and Vanguard. Having an independent third-party custodian serves to protect your money and creates an important separation between the party that holds your money (the custodian) and the party that manages it (Invest Smart USA). You will receive monthly statements from the custodian and confirmations of trades made on your behalf.  In addition, Invest Smart USA will also provide you with quarterly portfolio reports to help you better understand how your assets are managed and how they are performing. 

Q:  Do you prepare taxes? 

A:  Yes, we can prepare simple tax returns in-house for an additional fee.  We have CPA recommendations for businesses and more complex personal returns. As part of our standard service, we offer to review each of our client’s tax returns to gain a better understanding of their financial situation, and to provide us with an idea of how to best manage their assets with their tax situation in mind.   

Q:  Do you set up wills and trusts? 

A:  While estate planning is an important piece of the pie for many of our clients that we include in our services to you, we do not prepare legal documents.  Instead, we work together as a team, with highly qualified attorneys to develop a plan that fits your needs. We are happy to work with the attorney of your choice or to direct you to attorneys we have had the experience of working with in the past.  

Q:  Are your fees tax deductible? 

A:  As per the Tax Cuts and Jobs Act of 2017, the deduction for professional fees are no longer available to most clients. As always, please consult with your tax preparer regarding the impact to your individual situation.   

Q:  What investment vehicles do you typically use? 

A:   In our client portfolios, we typically use individual stocks, Exchange Traded Funds (ETFs) and occasionally no-load mutual funds.  However, before we recommend any investment, we consider your objectives, tolerance for risk, your time horizon for the use of the assets, current economic conditions, the outlook for a specific asset class or type of security, and how the investment fits within your portfolio.  We seek to obtain the most appropriate investment vehicles to meet your objectives, while being conscientious of total expenses and risk exposure.  

Q:  If the market is down, will you get me out before it gets too low? 

A:  We do not attempt to predict or time the market.  While we will make tactical allocations and decisions within our portfolios based on current market conditions, we would typically not liquidate an entire portfolio in anticipation of a market crash.  We believe that cautious, educated, and patient investing is the best plan in the long run.  

Q:  Can I keep my assets in my current brokerage account? 

A:  So that we can provide the full range of services needed to manage your accounts, we ask that your investments be held at our preferred custodians including Charles Schwab, TD Ameritrade, and Vanguard.  Typically, Charles Schwab is our preferred custodian for a variety of reasons, not the least of which is our long history with Schwab, their first-class performance, and customer service. If your accounts are already at one of these providers, we work with you to complete the paperwork necessary to add limited authority on the accounts that allow our firm to perform the task of managing your portfolio.  If your accounts are not with one of these custodians, it is a simple task to have your assets moved. 

For company sponsored retirement accounts held through an employer plan such as 401(k), 403(b), TSP, and Variable Annuities, we work with you to obtain the data necessary to monitor and manage these accounts in an ERISA compliant fashion.   

Q:  If you custody assets at Charles Schwab, TD Ameritrade or Vanguard, do you work for them? 

A:  We do not work for our custodians, and our compensation is not tied to them.  Schwab, TD Ameritrade, and Vanguard offer services to our clients just as they do any retail client, but to us through their Institutional divisions.  These divisions are geared toward working with advisors like Invest Smart USA to help our firm efficiently and effectively manage your portfolio.