Frequently Asked Questions

Wealth planning as a profession is portrayed in many different respects. To help clear up some of the typical confusion surrounding the subject, we have collected a list of frequently asked questions. These questions follow no particular order and is ever growing as clients and potential clients seek to understand our practice methods. If you can't find your question here just gives us a call, we are happy to answer any question you might have about our practice. Thanks for your interest.

Q. Who are Fidelis clients? 

Our clients are middle to upper middle class individuals and business owners who want to simplify their financial life, optimize their investments, and organize their personal financial planning.  We work closely with clients to identify their goals and then invest, monitor, grow, and protect their wealth with cost-efficiency and reliability in accordance with their goals.                   

Q. How does Fidelis approach investing?

We use a Structured Investing approach based on the following concepts:

  1. Accept Market Efficiency
  2. Risk and Return are related
  3. Effectively Diversify
  4. Customize your portfolio to suit your lifetime financial goals
  5. Exercise Patience and Discipline to remove irrational human behavior from the investment process

For a detailed overview of our process please see our Structured Investing philosophy.

Q. What investment vehicles does Fidelis use?
  1. Institutional mutual funds offered by Dimensional Fund Advisors (DFA), but on occasion we will utilize Vanguard's Life Strategy Funds.
  2. Dimensional Fund Advisors (DFA) offers asset class mutual funds which are widely diversified groups of stocks that make up a given asset class. They have a 27 year track record of providing consistent risk and return for each of the asset classes offered.
  3. Variable annuities - These are advisor directed products with low M&E costs and they pay no commission; DFA funds are available within their side funds.
  4. Alternative investments include real estate, limited partnerships, and if appropriate, managed futures
  5. Various Insurance products as the client needs to transfer risks.
Q. What kind of investment model does Fidelis use to construct portfolios?

We follow a three factor investment model when constructing portfolios:

  1. Over time stocks outperform bonds so we encourage our clients to have some of their portfolio invested in equities.
  2. Over time small-cap stocks outperform large-cap stocks consequently we encourage at least some allocation of the portfolio to small-cap stocks.
  3. Over time value stocks outperform growth stocks, therefore we encourage an allocation to value.
Q. What is the Fidelis investment selection process?

The investment selection process (more precisely the portfolio allocation) is determined completely by the client's financial goals and objectives. We encourage our clients to take no more risk in their portfolio than that necessitated by their goals and objectives. In other words, if the client needs a 6% return to achieve their goals, we would not encourage them to construct a portfolio with a risk necessary to achieve a 10% rate of return.

Q. Is Fidelis limited by a broker-dealer in terms of availability of investment alternatives?

 As a fully independent firm, we are not restricted to any investment product or service, and we work exclusively for the benefit of our clients. In fact, as a registered investment advisory firm, we have a legal fiduciary obligation to act in each client's best interest. We care deeply about helping our clients achieve their goals and objectives, and we endeavor to provide them with the highest-quality service and guidance.

Q. What services outside of investments does Fidelis offer?
  1. We construct an Integrated Financial Plan also known as an Integrated Wealth Plan for each client as part of our annual fee.
  2. We assist with special areas of planning for business operations or large asset purchases. Depending on the AUM, (under $500,000) there may be a separate fee.
  3. As part of the integrated financial plan, we provide insurance needs analysis for life, disability, and long-term care. We utilize relationships with brokerage general agencies to procure these policies when necessary.
  4. On rare occasion, we may provide clients with simple accounting and tax services, but normally and (especially for the more complex tax and accounting issues) we refer them to qualified tax professionals.
  5. Upon request, we provide clients any financially related analysis for which we are qualified; additional fees may apply.
Q. What is the Fidelis intake process?

We use a five meeting process:

  1. Discovery Meeting - We get to know you and your planning needs. This complimentary appointment may last up to an hour and a half, but it's the foundation of our understanding to know if we can have a great impact on your personal and financial goals or not.
  2. Investment Planning Meeting - We present our investment plan to accomplish your goals. Allow at least 2 hours.
  3. Mutual Commitment Meeting - We establish our planning relationship by signing agreements.  Normally takes less than an hour.
  4. 45 day follow-up meeting - We gather and respond to questions; help you get organized with all the papers and we help you place short-term progress into long-term perspective. 
  5. Regular Progress Meeting - We review progress toward your goals; uncover any changes in your life (job change, birth of a child or grandchild etc.) that might call for an adjustment to the investment plan and/or IPS. We continue to explain particular aspects of your plan as needed.
Q. How often do you communicate with a client?

We keep frequent contact with clients by way of face to face annual reviews, quarterly statements, monthly newsletters, and email or phone conversations as is helpful.

Q. Where does Fidelis custody assets?

We use Schwab Institutional to custodian our clients' assets.  Schwab is the largest provider of dedicated custodial services to the independent investment advisor community. Schwab provides cost-efficient access to the wealth management and investment products our clients need, with the financial safety and security that is crucial in today's economic environment. Schwab is obligated by law to maintain your assets for you and you alone. With Schwab as your independent custodian, you can be certain that no one – not even your investment advisor – can reach the assets in your investment accounts but you.

Q. Does Fidelis have business affiliation with any company or products it recommends? 
 
           No.  We receive no compensation from companies, products, or professionals we recommend. Our sole source of income is from fees clients pay us.