Frequently Asked Questions
Investment Services
What type of investments do you use in portfolios?
Most client portfolios are invested in mutual funds and exchange-traded funds because we find these investments usually generate the highest total portfolio return with the lowest volatility. However, some portfolios can benefit from individual security selection, and for those portfolios we use individual stocks and bonds. We also incorporate alternative investments as well as separate account managers when appropriate. Together, we will decide what works best for your portfolio.
Will my portfolio be customized for my needs?
Yes, your portfolio is individualized depending on your personal financial goals. As an organization we subscribe to certain standard investment management principles, but your personal portfolio will be unique.
Do you recommend hedge funds or alternative investments?
It is our practice to incorporate alternative investments when appropriate. These include absolute return strategies, private equity, long-short equity managers and managed futures. The advantage is that these investments have the potential to lower portfolio volatility while improving returns.
Will you give me advice on all of my assets, even those you are not managing?
Occasionally, a client wishes to hold a financial asset outside their Evermay portfolio. In this situation, if desired, we can provide advice on the asset and include it in your portfolio report, even though we do not directly manage the asset.
Will you work with my existing team of professionals, including my attorney and accountant?
Absolutely. Our goal is to simplify your financial life and the best way to do that is to collaborate with your other advisors. Keeping those lines of communication open enables us to provide the best possible advice.
Will you accept securities that I transfer in, including stocks, bonds and mutual funds?
We always prefer to transfer your securities in-kind rather than liquidating your holdings and transferring in cash. It allows us to evaluate your positions more carefully before selling any holdings and makes it easier to calculate the tax ramifications.
What if I have particular mutual funds, stocks or other securities that I do not want to sell?
Should you have certain assets that you do not wish to sell, we can hold them but omit from billing and Evermay management, if desired. However, we can include these holdings in your client reports and consider them in the overall construction of your portfolio.
Tax Strategies
Will you manage my portfolio in a tax-sensitive manner?
Yes, we take a proactive approach to tax management. We carefully review all tax lots and assess all tax implications prior to selling specific securities. We look to place less tax-efficient investments, such as those that generate high ordinary income, in tax-deferred accounts including Individual Retirement Accounts (IRAs), Simplified Employee Pension (SEP) and 401k plans. When appropriate, we invest in high quality, tax-exempt state and local bonds to help mitigate your tax liability.
Do you provide tax reporting?
To facilitate your tax filing, we have a sophisticated reporting system that records all transactions and distributions in your portfolio throughout the year. This reporting can be used to determine quarterly estimated tax payments. Shortly after the end of the tax year, we can forward to you and your accountant your custodian’s comprehensive, tax-reporting package that includes a detailed accounting of gains, losses, income and expenses for your portfolio(s).
Estate Planning and Insurance Services
Will you evaluate my estate plan?
As part of our comprehensive approach, we review your current estate planning documents, and discuss your desired legacy, wishes for your family and philanthropic inclinations. We evaluate your plan against current tax legislation to ensure that it is thorough, effective and tax efficient. If there are any deficiencies, we help you work with legal counsel to make the appropriate adjustments.
Are you able to recommend estate-planning attorneys?
We work closely with several prominent estate-planning attorneys and are pleased to recommend one.
Are you able to evaluate my current insurance policies?
Yes, we can help you evaluate your current policies’ effectiveness in light of your personal risk factors. We are impartial with respect to any particular insurance company, but work with several that specialize in the needs of high net worth individuals.