Karmikel Investments - Frequently Asked Questions

Can I keep any of my current holdings if I move to Karmikel Investments? Yes. Karmikel Investments will review your current portfolio and if we feel that your current positions meet your risk tolerance, time horizon and new portfolio structure we can use your existing positions in their respective asset class.

How do I become a client? Contact us by phone, email, or fax so we can mail you an informational packet and setup an initial telephone meeting. During this meeting we will determine if structured investing is right for you. If you want to proceed we will send you our ADV II, a copy of our Investment Advising Service Agreement, and account transfer documents (if necessary). There is no obligation or fee for our initial meeting.

What happens after I become a client? We will setup your account, review your current asset holdings, discuss your desired portfolio characteristics, formulate your asset structure, handle any asset transfers necessary, and implement your new investment plan. Then on a continuous basis we will be available to make any account changes, discuss any of your investment questions, and provide overall account supervision.

Do you have account minimums? Yes, our account minimum is $100,000.

What reports will I receive? Incoming clients will receive the results of analysis will be presented to you in a detailed report that clearly compares alternative portfolios with a wide variety of metrics and what-if scenarios. This comparison contains a written narrative as well as tables, graphs and charts to help you understand the intricacies of the different approaches. Existing account holders will receive a custom quarterly report with performance and asset structure results. You will also receive monthly activity reports from your brokerage firm.

Will I have to sell all my current holdings? No, any of your current holdings that match your desired portfolio structure can be incorporated into the appropriate asset classes.

What brokerage firm does KI use? We recommend our clients use Ameritrade due to their low trading costs and to facilitate the management of all Karmikel Investment accounts. However, we will manage your account at the brokerage firm of your choice.

How are KI fees structured? KI charges a low annual retainer fee that is based on a percentage of account size. (See Fee Structure, elsewhere on this website for more details).

Does KI receive monies from any other financial institutions, funds, brokerages, etc.? No, to remain objective, we are a fee-only advisor and do not receive compensation from anyone other than our clients.

With what agencies is KI registered? KI is a registered investment advisor with the state of Arizona, Nevada, and Utah. We stand ready to register on short notice with additional state as business dictates.

Can I meet with you in person? Yes. Karmikel Investments will meet with our Arizona clients on a quarterly basis and as needed throughout the quarter. While it is a goal of ours to meet with each and every out of state client, it is not always possible nor is it common in this industry. As a matter of safety to you, remember that your assets go directly to the custodian and that we never take custody of your assets nor can we distribute them.

Will KI have trading discretion over my account? Yes, but we will never make a trade with out first consulting you unless you choose otherwise.

Are my investments safe at KI? Your funds go directly into your Ameritrade account. Karmikel Investments never has custody of your funds and only you can distribute funds from your account. Your brokerage account is also protected by SIPC and private insurance. PLEASE REMEMBER THAT YOUR ACCOUNT WILL FLUCTUATE IN VALUE.

Can I get a brochure? We do offer an informational packet which may be sent to prospective clients. To speed up your understanding of Karmikel Investments and our investment philosophies, we offer this comprehensive website which contains most of the information in the packet. In addition to the information on this website, our informational packet also contains our ADV Part II and examples of our quarterly reports.

What other services does KI perform? In order to provide our customers with a complete review of your financial health we perform financial planning, estate planning, and tax management. However, we do recommend that you utilize other professionals such as CPA's, tax attorneys, real estate brokers as a complement to our services. These professionals deal with their respective area's on a daily basis and can be an invaluable resource.

What is a structured investment strategy? A structured investment strategy does not attempt to find under or over valued stocks. Instead a well diversified portfolio is created consisting of a mix of stocks, laddered bonds, and U.S. government securities. A structured investment strategy is primarily a buy and hold strategy with possible rebalancing of the portfolio as market conditions dictate. The corner stone of structured strategies is the belief in the efficient market hypothesis.

Home

My Account

Investment Philosophy

Modern Portfolio Theory

Active vs. Structured Management

Portfolio Performance

Tax Management

Dimensional Funds

Consolidated Custom Reporting

Service Provider Coordination

Risk Management

Wealth Transfer, Legacy Planning & Charitable Giving

Frequently Asked Questions