Frequently Asked Questions

  1. What separates Coast Wealth Management from other advisors?
  2. How are we compensated?
  3. How often do you reevaluate my investments/plan?
  4. Can I request a copy of your SEC Form ADV, Part II?
  5. Can I review your investment performance over the last several years?
  6. What are your minimum requirements for accepting new clients?
  7. What are your fees?
  8. Can I just use Coast Wealth Management for Financial Planning Services?
  9. Can you help me with my taxes?
  10. Why don’t you implement portfolios by picking individual stocks?
  11. I am uncomfortable with investing in international markets. Do you normally recommend international exposure?
  12. Why should I hire a wealth manager when I can buy the same funds on my own?

 

 

What separates Coast Wealth Management from other advisors?

Locally Owned and Operated.  We are an independent firm with no ties to some large, faceless corporate parent. 
Comprehensive Planning.  All of the work we perform is custom tailored to each clients objectives and circumstances.
Experience.  Michael Vandenburg is a Certified Financial PlannerÒ (CFP) and has 18 years of experience in serving the needs of wealthy families across the nation.
Focus.  Wealth Management is the only service we provide and we work exclusively with high net worth individuals and families.

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How are we compensated?

Coast Wealth Management provides services on a fee-only basis.  Fees are calculated as a percentage of assets under management.  We do not accept any other compensation, either directly or indirectly from other sources.

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How often do you re-evaluate my investments/plan?

Because of the highly customized nature of each client relationship, the frequency of formal reviews or meetings varies from client to client, based on individual preferences and circumstances.  After the initial discovery meetings and comprehensive planning, we maintain an ongoing dialogue with our clients in all aspects of their financial decisions.  We recommend that progress on all plans be reviewed annually and be thoroughly re-evaluated every three to five years.
We communicate with all clients throughout the year whenever there is a need, but at least quarterly.  About 2 – 3 weeks after each quarter, every client will receive their quarterly report, along with our view on the current market and economy.  Since we often serve as our clients “Personal CFO”, we may be in touch very often, discussing cash flow issues, tax planning, charitable gifting, or foundation planning.

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Can I request a copy of your SEC Form ADV, Part II?

The SEC requires Registered Investment Advisors to provide the Form ADV, Part II to all clients.  This form gives detailed information regarding our firm, including its principles and our business.  Our current Form ADV, Part II is always available on our website (click here), or you may give us a call at (949)366-5995 and request a copy to be mailed to you.

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Can I review your investment performance over the last several years?

Prospective clients often ask to see performance results or a “composite” of our investment results.  Regretfully, under strict AIMR (industry standard) rules designed to ensure fairness and comparability, we are not able to prepare a meaningful composite.  The reason is very simple:  we do not have a “typical” client portfolio.  Instead, each portfolio reflects the time horizon, risk tolerance, return objectives, and personal financial goals of the client.  However, in the absence of a composite, we are able to show the performance of actual client portfolios that we manage.  We can also show the performance of actual funds or positions that we have or are currently recommending.  Prospective clients can observe the range of actual returns of specific portfolios and the component elements often used in those portfolios.

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What are your minimum requirements for accepting new clients?

To ensure that we remain able to provide the level of service, which our clients, existing and new, deserve, Coast Wealth Management has certain minimum thresholds for new clients.  These thresholds are:

A minimum portfolio of $1,000,000 to be managed by Coast Wealth Management as the primary financial advisor.
A commitment to the financial planning process and a willingness to be a part of the process. 
A commitment to a long-term relationship.  Coast Wealth Management has extremely low client turnover and enters into each client relationship with the expectation that we will be there for you through the realization of your goals and dreams.

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What are your fees?

Coast Wealth Management does not charge an initial planning fee.  Although the initial planning is time consuming and costly, the time spent allows us to gain a deeper understanding our clients’ values and circumstances surrounding their goals.
Fees for Comprehensive Wealth Management services are according to the following schedule:

1% per annum of the first $1,000,000, plus
.85% per annum for amounts greater than $1,000,000 up to $3,000,000, plus
.75% per annum for amounts greater than $3,000,000 up to $5,000,000, plus
.60 per annum for amounts greater than $5,000,000

Fees are paid directly from the managed accounts on a quarterly basis.

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Can I just use Coast Wealth Management for Financial Planning Services?

Generally, no.  We require that all clients utilize our comprehensive Private Wealth Management service.  Over the years we have observed that clients who utilize the full comprehensive services available to them have better results and a much more efficient portfolio. 

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Can you help me with my taxes?

Although tax analysis and considerations are a part of the wealth management process, we do not directly prepare tax returns.  We will work very closely our clients’ accountants to ensure the best possible two-way exchange of information, facilitating the accountant’s return preparation and an accurate view of our clients’ tax situation. 

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Why don’t you implement portfolios by picking individual stocks?

To help reduce overall portfolio volatility we use sophisticated methods of diversification in the construction of durable, long-term investment portfolios.  We provide the smartest solution for each client using “best of breed” opportunities, regardless of their source.  We will look at several avenues for implementing client portfolios based on each clients’ needs, including, separate account managers, large, institutional managers or mutual funds, most of which are not normally available to individual investors.  A majority of portfolios can be implemented with a mutual fund strategy, which is the most cost effective way of constructing globally diversified portfolios.

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I am uncomfortable with investing in international markets.  Do you normally recommend international exposure?

Yes, we believe U.S. investors should seek opportunities internationally.  The U.S. equity markets today represent far less than half of the worlds total equity value.  We believe that by ignoring international markets, investors deprive themselves of the opportunity for higher long-term returns.  Furthermore, by diversifying into international markets, investors will generally experience lower volatility for their portfolio, as a whole, over time.  For these reasons, we include appropriate levels of international exposure for each client that is consistent with their return objectives and tolerance for risk.

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Why should I hire a wealth manager when I can buy the same funds on my own?

Often it is not possible to buy the same funds on your own.  Many of the funds we use to implement portfolios are institutional or restricted by large minimums, or qualified advisors only.  But this is just one very small part of the wealth management process.  Our clients retain us as advisors because of a coordinated matrix of services we provide.  We serve our clients as comprehensive wealth managers, providing personal financial planning, and disciplined investment management based on each clients goals and values.

Some of the benefits our clients receive include:

The coordination of investment plans with financial planning objectives.
Strategic investment plan for target returns within your risk tolerance
A disciplined approach to portfolio management (as opposed to the “fear and greed” syndrome many clients experience managing their money n their own).
Access to institutional priced mutual funds (often much less expensive than their retail counterparts).
Ongoing monitoring of mutual funds and managers.
Consideration of income, gift, and tax implications of any portfolio actions.
Portfolio rebalancing to maintain the target asset allocation.
Efficient coordination with accountants and attorneys for all tax and estate planning issues.
Professional measurement of portfolio performance and reporting.
Ongoing consultation of market behavior and expectations for your portfolio

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