Brown Wealth Management, LLC
I partner with individuals, families and entrepreneurs to provide a comprehensive, client based approach in all areas of financial planning.
By acting as a fiduciary, I give objective and unbiased advise based on my clients best interest.
Many times my role for clients is much like a quarterback. When developing ...(see more)
|Brown Wealth Management, LLC||10 years, 1 month||Sep 2005 - Present|
|Brown Wealth Management||13 years, 8 months||Feb 2002 - Present|
|Uniform Investment Adviser Law Examination||Series 65||01/14/2002|
Great article in Forbes Magazine. Here's an excerpt: There essentially are two phases to preparing your financial future. The first is financial planning. At its core, this is straight-forward, especially because it usually amounts to planning for retirement. You ascertain your current net worth–assets minus liabilities (what you owe on mortgages, credit cards, etc.). Then you estimate what you’ll need to live on in retirement, taking into account stuff like life expectancy, inflation and health-care costs. The difference between the two determines the amount of risk–stocks instead of fixed income–you’ll need to fund everything. There are a lot of variables to consider, but the thought process is relatively linear. The second phase is implementing and maintaining your plan. This involves picking specific investments–stocks, bonds, mutual funds, ETFs or whatever–to match the amount of risk your plan says is appropriate. Then the portfolio has to be monitored and adjusted as warranted to handle changed circumstances. This can be anything from developments in your own life–advancing age, declining health, a desire to make gifts the younger generation–to persistent changes in the economy, like high volatility and low interest rates. Whatever advice you decide you need and whomever you select to provide it, the help won’t come for free. But what you pay can vary widely, and not just because of the amount of assets you want managed. And it is often true that you get what you pay for.
Brown Wealth Management LLC will exercise its best efforts to act in good faith and in the best interests of our clients. We will provide written disclosure to our clients prior to our engagement, and thereafter throughout the term of the engagement, of any conflicts of interest, which may compromise our impartiality or independence. We do not receive any compensation or other remuneration that is contingent on any of our client’s purchase or sale of a financial product. We do not receive a referral fee or other compensation from another party based on the referral of our client or our client’s business. Putting My Client’s Interests First: 1. I believe in placing my clients’ best interests first; therefore I am proud to commit to the following five principals. 2. I will put my client’s best interests first; I will act with prudence; that is, with the skill, care, diligence and good judgment of a professional. 3. I will not mislead clients and I will provide conspicuous, full and fair disclosure of all important facts; I will avoid conflicts of interest. 4. I will fully disclose and fairly manage, in my client’s favor, any unavoidable conflicts.
The congressional Committee on Education and Labor found that paying just 2.4% in higher administration fees can cost a plan one-third of its potential earnings when annual contributions are compounded over 30 years. This study was done to examine proposed legislation on Fee Transparency. Simply put, high expenses are like termites eating away at your investment returns. So, where are the termites? The fees inside a 401k plan go to management fees, record-keeping, “shelf Space” fees, trading costs, and commissions paid to sales people who sell the plan (sometimes referred to as 12b-1 fees). The best pest control is a plan with an open architecture in which all fees are listed up front and there are no hidden costs. Unfortunately, the majority of 401k plans offered are based on a closed architecture platform with hidden fees and limited—often mediocre—mutual fund choices. There are two ways you can easily determine if you have a closed platform: First, nearly all plans offered through an insurance company or a mutual fund family are closed architecture; Second, plans with a mutual funds containing B,C, T or R share classes are also closed. These shares are particularly worrisome because they always underperform their no-load or A-share class counterparts.
Broker-dealers and insurance companies disagree with a fiduciary standard. They argue that their salespeople already have to adhere to rigorous regulations and that applying a fiduciary standard to them might prohibit them from charging commissions or limit the products that they can sell. As one broker/dealer spokesperson said ”The group now has ’concerns about imposing the fiduciary duty and its unintended consequences on small investors.’" What is the unintended consequence about putting your clients’ interest first? Simply put, lucrative commissions disappear. Bob Veres, renowned financial columnist and editor of Inside Information, a newsletter for financial planners, offers some valuable insight about this debate. “Look at the motives of those who are in favor of a fiduciary standard, and at the motives of those who oppose it. Those in favor--generally the most informed consumers and members of the RIA community--have very little to gain, personally and professionally--from their advocacy. The astute consumer will find the fiduciary needle in a haystack regardless of the regulatory structure. RIAs are actually advocating for more meaningful standards imposed on professionals like them. The brokerage firms, meanwhile, are protecting extremely lucrative sources of revenues, including profit margins dramatically higher than most American businesses. I would argue that the SEC should give their arguments less weight in the fiduciary debate; not only are they predictable and self-serving, they are also visibly not in the interests of the retail financial customer.”
During two separate new client meetings I was asked the same question: What is a fiduciary? I find the question particularly interesting because it mirrors a very significant debate taking place in Washington. First, the ambiguity of financial advice among the public and regulating bodies, and second, the lobbying from the broker-dealer industry to keep the word out of your vocabulary. The point of contention centers on the word fiduciary. Fiduciary is derived from the Latin fidere, to trust. Trust is the pillar in an advisory relationship. If a fiduciary standard means “putting a client’s interests above your own,” who would argue about that? If you guessed Wall Street, you are right. Because so much media attention is given to the healthcare debate, most of us don’t know about this David vs. Goliath battle taking place in the House Financial Services Committee.
|High Net Worth Individuals|
No Disclosures Found
|As of Date||
This advisor has certified that they are compensated solely by their clients, and do not accept commissions or compensation of any kind based on the products they recommend.