Frequently Asked Questions
Q: WHAT IS YOUR INVESTMENT PHILOSOPHY?
Our Investment philosophy is based on overwhelming evidence and empirical data in the field of Investment Science and Modern Portfolio Theory. Our clients draw comfort from the knowledge that our strategies are shared by many noble laureates in economics, investment gurus such as Warren Buffet, and top business schools throughout the United States.
Q: WHOM DO YOU SERVE?
We provide wealth management and financial planning services for wide range of clients, including individuals, families, small/medium-sized businesses, and non-profit organizations throughout the United States.
Q: WHAT GENERAL SERVICES DO YOU PROVIDE?
In our initial “Discovery Meeting”, we gather information from our client to allow us to create a financial plan for each client that provides financial planning, asset protection, tax planning, investment management, retirement planning, and estate planning services. Furthermore, each plan will include a Monte Carlo analysis which is a more precise and scientific calculation of analyzing risk and reward.
Q: HOW DO YOU CHARGE FOR YOUR SERVICES?
FIS charges a flat fee based on an asset-tiered schedule. Fees are computed and billed quarterly, in advance, and are based on the market value of the client’s account on the last day of the month in the prior quarter. Fees will be prorated, on a monthly basis, with respect to new accounts opened during a quarter.
Clients who want financial planning without having their assets managed are charged an hourly rate of $175/hour.
Q: DO YOU OFFER FREE CONSULTATIONS?
Yes, FIS is happy to meet with any potential client that has a minimum of $100,000.
Q: WHAT HAPPENS TO MY CURRENT HOLDINGS IF I BECOME A CLIENT?
Once a new client’s investment plan is finalized, FIS may recommend that certain assets be held or sold. FIS will receive a Limited Power of Attorney over the assets but will never have a custodial relationship with any client assets.
Q: WHERE ARE MY ASSETS/ACCOUNTS HELD?
Every client has the choice of holding their assets in an account(s) at Charles Schwab, Fidelity, or TD Ameritrade. Clients can get access to their account(s) 24/7 via the internet from any of these custodians.
Q: WHAT DO YOU MEAN BY AN EVIDENCE-BASED INVESTMENT APPROACH?
Evidence from practicing investors and academics alike points to an undeniable conclusion: returns come from risk. Gain is rarely accomplished without taking a chance, but not all risks carry a reliable reward. Financial Science over the last fifty years has brought us to a powerful understanding of the risks that are worth taking and the risks that are not.
Everything we have learned from this Financial Science is that expected returns in the equity markets can be summarized by three factors. The first is that stocks are riskier than bonds and have greater expected returns. The other two factors are based on overwhelming statistical evidence that shows small cap stocks outperform large cap stocks and value stocks outperform growth stocks over time because the market rationally discounts their prices to reflect underlying risk. The lower prices give investors great upside as compensation for bearing this risk.
Q: WHAT IF I NEED A BOND (FIXED INCOME) PORTFOLIO?
FIS can create individualized, laddered bond portfolios consisting of Corporate, Municipal, Agency, or US Treasury bonds. FIS does not mark up the cost of bonds it acquires for clients.
Q: DO YOU ONLY WORK WITH CLIENTS IN SOUTHERN CALIFORNIA?
Most of our clients are generated by referrals from our existing clients. FIS will work with clients outside of California where we may be registered or licensed to do business. We welcome inquiries from all over the United States.
Q: DO YOU USE DIMENSIONAL FUND ADVISOR (DFA) FUNDS?
FIS believes in DFA’s “evidence-based” advice and will try to use DFA as much as possible; however, there are specific situations when other funds such as Vanguard or Exchange Traded Funds (ETFs) are used due to specific tax liabilities, asset selection, and/or tax efficiencies.
Q: HOW DO I GET MORE INFORMATION?
Please contact us through the information provided below.
Fischer Investment Strategies
Ted Fischer, President, CFP®
870 Hampshire Road
Westlake Village, CA 91361
Telephone: (805) 418-7686
Fax: (866) 279-7711