What to Expect
Investments are one important part of your financial life. As a client of Tandem, you can expect to understand the way your portfolio is built and managed, and how it supports your investment objectives. Investing blindly without a plan while hoping for maximum return isn't meaningful, and it often leads to unnecessary risk and poorly-timed decisions.
You want to know that you're investing the right way. If you're working with Tandem that means making sure your investments are aligned with your financial goals and what you value. We help you to build allocations across your household that pair your investment objectives with an appropriate level of risk. We manage your accounts so they work together to build toward your goals, and we work with you along the way to adjust course.
Tandem offers investment management services to help you with the following:
Investment Goals - You are likely investing for short, medium, and long-term goals. So how can you invest appropriately to support all three? By assigning a time-horizon to different goals, we can manage your household portfolio holistically.
Personal Values - There are different ways to support your values through your investments. You can use portfolio gains to fund your personal endeavors. You can use appreciated investments to donate to causes you care about. You can also use Socially Responsible Investments and Values-Based Investments inside your portfolio. Tandem can help you to decide what's right for you.
Investment Plan - What a financial plan does for the way you set goals and make money decisions, an Investment Plan Statement (IPS) does for your portfolio and how it reacts to external forces. It outlines when and how portfolio changes will be made. We plan ahead for market changes so we don't overreact at the wrong times.
Fiduciary Advice - As a Fee-Only advisor, Tandem never receives any commissions or sales incentives of any kind. Our only product is our service to you, and you’re the only one paying for the advice you receive.
Risk Tolerance vs Risk Capacity - Your risk tolerance is your natural inclination to take or avoid risk. It's how much you can stomach. Your risk capacity is how much or little risk you need to take in order to accomplish your investment objectives. These two don't always align, and neither can be ignored.
Portfolio Construction - Tandem believes that while the market doesn't always behave rationally, the best practice is to build a diversified portfolio to control risk for a given level of expected return. For the most part we use low-cost, passively-managed index funds as the building blocks to gain exposure to various asset classes while controlling cost.
Portfolio Management - Portfolios are analyzed for drift away from the target allocation and rebalanced as outlined in your portfolio's IPS. We also allow for legacy positions and can build around investments you've acquired elsewhere. You don't have to sell everything and start over to get good advice.
Tax Management - It's important to monitor your portfolio and track your cost-basis. We can identify opportunities to harvest losses or gains depending on your needs as outlined in your portfolio's IPS.
|Total Household Account Value||Annual Management Fee|
|Portfolio Only||For Planning Clients|
|$0 - $40,000||$360||$200|
|$40,001 - $250,000||0.90%||0.50%|
|$250,001 - $500,000||0.80%||0.50%|
|$500,001 - $1,000,000||0.70%||0.40%|