Frequently Asked Questions about Solaris

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What is the difference between a stockbroker and a fee-only Registered Investment Advisor (“RIA”)?

There are two significant differences between a stockbroker and a fee-only RIA.
Fiduciary Responsibility: Stockbrokers do not have a legal obligation to act in the best interest of their clients. In fact, many brokerage account applications include the following phrase:
“Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and our salesperson’s compensation, may vary by product and over time."

As a Registered Investment Advisor, we have a legal obligation to act in the best interests of our clients. In fact, our Client Agreements include the following phrase:
“Solaris has a fiduciary responsibility to act in the best interests of the Client”
Compensation is the other significant difference. Stockbrokers are salespeople and as such, they are compensated for their selling activities. Not only do they make money from commissions and fees paid by their clients, but at times, they also receive compensation directly from the financial company who’s products they sell, including residual payments, 12b-1 fees, trails and more.

As a fee-only Registered Investment Advisor, the only compensation that we receive is from the fee we charge our clients’ accounts. This provides the assurance to our clients that there is never a conflict of interest with our advice and that our advice is never based on increasing our own compensation.

If I am paying fees to your firm, does that mean I will be paying more money than if I went to a brokerage?

Typically no. Solaris Private Wealth Management has access to over 2,500 different no-load mutual funds that clients purchase without paying any fees or commissions. If we recommend individual equities or ETF’s, then our clients simply pay trading commissions (to Schwab) which normally run between $9.95-$19.95/trade.

What are your investment advisory fees?

Since each client has different financial and investment management needs, ours fees vary based on those unque needs. The majority of our clients pay an annual investment advisory fee ranging between .65-1.0% of actively managed assets.

Who holds my investments and money?

We utilize the custodian services of Schwab Institutional, a division of The Charles Schwab & Co. which custodians approximately $500 Billion in their RIA program. Schwab Institutional provides our clients with their monthly statements, trade confirmations, online account access and year-end tax reporting.

Do you have account minimums?

Absolutely not. One of the founding principles of Solaris was to help all investors, irrelevant of portfolio size, with their investments. While working at a well-known national brokerage, it was seen firsthand how the brokerage would charge low balance fess to smaller accounts in an effort to have the account holder move the account. Appalling, but true – there is never an account minimum at Solaris.

Do you provide other services besides managing client’s investments?

Yes, while each client is different in their financial planning needs, our most basic services include:

• Providing an annual Net Worth Statement – clients need to understand what they own and where they are financially headed.
• Assistance with their 401(k) allocations.
• Periodic email reminders to check their free credit reports at www.AnnualCreditReport.com
• Working with their other advisers, such as a tax accountant or estate planning attorney, as needed.

Are there additional fees for these services?

No, they are provided as a benefit of being a Solaris Private Wealth Management client.

Are there any type of investors that you will not take?

At Solaris Private Wealth Management, we believe the key to successful investing is implementing a strategy of disciplined asset allocation. If an individual is interested in heavy stock trading or looking for hot stock tips, we would recommend they look else where.

If you should have any further questions, please call us at 866.826.8420 or click here to complete our Information Request form.