FAQs

1. Who needs an Investment Advisor?

In our opinion, everyone. You do not need to be incredibly wealthy to benefit from an investment advisor. You just need to have the desire to know that your financial future is sound and that you and your family will be prepared for life changes and unexpected circumstances. A qualified investment advisor has the expertise and experience to help you set achievable goals, recognize your financial weaknesses, and develop a comprehensive strategy.

2. How do Registered Investment Advisors (RIAs) work?

Registered Investment advisors are governed by the U.S. Securities and Exchange Commission (SEC), and work on your behalf to invest assets or manage wealth according to a defined investment objective suited to your needs.

3. How does an investment advisor like Girard Partners get paid?

Girard Partners is what is known as a "fee-only" advisor, meaning we charge you a fixed percentage based on the assets we manage. We are not paid commission on transactions or by the investments placed in your accounts. Trading fees do apply to stock and some mutual fund transactions, which are imposed and gathered by the custodian. These fees are in the range of discount brokerage commissions. Our fee-only approach allows us to have an unbiased approach to how we invest your assets.

4. Is there a long-term contractual obligation for Girard Partners services or any funds I invest in?

No. Girard Partners requires 30-days written notice for termination of service. The investments we utilize for our clients can be sold without penalty or deferred sales charges.

5. Who holds my assets? Can I get to them?

TD Ameritrade is the independent third-party custodian Girard Partners employs to safeguard our clients' assets. This relationship provides an additional benefit because we do not take custody of your assets; instead we act on your behalf to position your account to effectively achieve your goals.

6. Can I access my account via Girard Partners/TD Ameritrade?

Yes. You may access your account via the web and TD Ameritrade's voice-automated response system, 24/7. You will also receive quarterly statements from Girard Partners and monthly statements and trade confirmations from TD Ameritrade. Girard Partners is fully accessible to provide custom reports specifically to meet your requests.

7. Do I have access to my Portfolio Management Team, and how often?

Yes. Girard Partners prides itself on excellent client service and open communication. You can speak with your portfolio management team as often as you like. Your team will also provide you with updates on your portfolio and market conditions.

8. Do Girard Partners employees invest in the same vehicles used by clients?

Yes. Our employees follow the same principles and philosophy, and we utilize the same vehicles as our clients.

9. How are investments selected?

Girard Partners utilizes a rigorous proprietary research process to select the best possible stocks, bonds, and mutual funds. We adhere to standards of both quantitative and qualitative evaluation for investments on our approved list. The approved list is maintained by our Investment Committee, which is charged with the function of determining what investments are added or subtracted from the approved list.

10. What type of mutual funds does Girard Partners use for clients?

No-load funds are the primary funds used for clients. No-load means commissions are not paid for purchase, redemption, or ongoing position in fund. There are internal expenses charged by the fund for ongoing management (expense ratio). However, this expense is not a commission, but the cost imposed for the management of the fund. We use expense ratio reasonableness as criteria for selecting funds.

11. Does Girard Partners follow stocks, and who is best suited for purchasing individual stocks?

Yes, we follow and maintain a list of approximately 80 large cap U.S. stocks. We base our research on the fundamentals of each company and utilize a proprietary quantitative system to ascertain fair value for each holding. We then calculate buy-and-sell triggers based on a measure of where the stock trades in relation to fair value. Those who invest in individual stocks should have an asset base that can support the additional diligence, longer return on investment, and potential volatility intrinsic of individual stocks.

12. What is Girard Partner's Investment style or Philosophy?

Our investment philosophy is based on the fundamentals of asset allocation and diversification. We question our clients on how they feel about risk, and based on those results, we define an individual strategy for each client. Our philosophy will diversify you among different asset classes (foreign, U.S. small & large stocks, REITS, bonds) based on a predetermined percentage. We also believe in and deploy diversification strategy based on economic sectors, i.e. financial, consumer, and energy.

13. Should I own bonds/fixed income?

We believe all clients should own some bonds or fixed income securities. The question as to how much depends on your stage in life, income, needs, attitudes towards risk, and time horizons. Bonds are an asset class just like stocks, and are an important component of asset allocation and risk management.

14. How does Girard Partners manage risk?

By investing in different asset classes, investment styles, economic sectors, the first layer of risk management is diversification. We also like to spread our bets among holdings; therefore no single security will make up a disproportionate amount of your wealth. Stocks and other investments carry risk and markets are unpredictable. Periods of time do go by where asset levels go down; however, over the long run, a properly-diversified portfolio will put you in the best position to succeed while managing risk.

15. Does Girard Partners perform its own research?

Yes. Our firm has developed proprietary methodologies and technologies to aid our team in the investment selection process. We also invest greatly in outside third-party research to help in our analysis.

16. Does Girard Partners have conflicting interests regarding the investments selected?

No. Because we are paid by our clients directly and not from product or investment sales, we avoid conflicts of interest. If a conflict arises in the beginning or over the course of our relationship, we must disclose that conflict to the client.

17. Can I talk to my Girard Partners Advisory Team about other financial matters such as tax, estate planning and general financial concerns?

Yes. We are available to speak with you about other financial matters outside your investment portfolio, such as taxes, estate planning, or questions about a home purchase. Give us a call to find out more.