1.  Is ASC a fiduciary?

Yes.  ASC is an RIA which stands for Registered Investment Advisor in the state of California.  ASC is a fiduciary, and Fiduciaries work in the best interest of the client.  In contrast, non-fiduciaries need to only to recommend products and services that are acceptable which may not be to the best interest of a client.

2.  How does ASC get paid?

At ASC, we are paid either as a small percentage amount of the assets under management or we are paid by at a rate of $300 per hour for monitoring, analysis, and reporting of the performance of certain or all investments in client’s account.  In the latter, ASC may recommend changes, provide the client with reports or other information, and periodically review the suitability of the investments for client, and ASC will be paid on an hourly basis for these services

3.  What are a client’s costs?

ASC’s fee is exclusive of, and in addition to, brokerage commissions, transaction fees, and other related costs and expenses, which may be incurred by the client.  However, ASC will not receive any portion of these commissions, fees, and costs.

4.  What are ASC’s qualifications?

We have academic and professional training and education in the world of finance, economics, and asset management.  is a good indicator that your advisor is plugged into the world of finance and and understands many of its complexities.  In addition, to become an investment advisor, one needs to  pass “Series 65 – the Uniform Investment Adviser Law Examination.”  Altman Sacks Corporation is registered as an Investment Adviser with the State of California.  Registration of an Investment Adviser with the State of California, SEC, or any other state securities authority does not imply any level of skill or training.

5.  How will ASC-Client Relationship work?

You will access to ASC by phone and other means all year long.  ASC will be available for phone calls and meetings.

6.  What’s your investment philosophy?

ASC generally employs a long-term investment strategy for its Clients which is to be consistent with their financial goals.  ASC will typically hold all or a portion of a security for more than a year, but the Advisor may hold the securities in the portfolio for shorter periods for the purpose of rebalancing a portfolio or meeting the cash needs of Clients.  At times, ASC may also buy and sell positions that are more short-term in nature depending on the goals of the client and/or the fundamentals of the security, sector, asset class, or the current or upcoming United States and global economic conditions.

7.  What asset allocation will you use?

ASC will develop a tactical asset allocation that is targeted to meet the investment objectives, time horizon, financial situation, and risk tolerance for each client.  Tactical asset allocation is different from the traditional strategic asset allocation.  A tactical asset allocation requires active management to meet the changes in the conditions of the United States and global economies.  Asset allocation that is best for a portfolio will generally include a highly diversified “non-correlated” domestic and international stocks, ETFs,  and other equity and bond securities from the United States and other countries.   The stock and equity funds’ blend will include small-cap, mid-cap, and large-cap companies.

8.  What investment benchmarks do you use?

Over time, ASC would like to beat either Russell 2000 index or the S&P 500 index.   However, bear in mind that a client’s diversified portfolio generally includes international stocks and equity and bond securities in it as well.

9.  Who will be the custodian?

ASC does not provide securities custodial or other administrative services.  At no time will ASC accept or maintain custody of a client’s cash or securities, except for authorized deduction of the Advisor’s fees from client’s account.  All client’s assets will be managed within their designated separate brokerage or pension account pursuant to the client investment advisory agreement.   Clients who utilize our advisory services will have their assets custodied at Fidelity Investments (“Fidelity”), Charles Schwab & Co., Inc. (“Schwab”), Interactive Brokers (“IBKR”), or other brokerage firms.

10.  What annual taxes does a client face?

It varies.  There are qualified dividends as well as ordinary dividends.  Qualified dividends are generally tax free at the Federal level.  On the other hand, for a non-retirement account, ordinary dividends are taxable at both Federal and state levels.  When you gain a realized capital gains from selling equity which was held in your account for more than one year, you will be exposed to a lesser tax bracket known as capital gains tax which may change from time to time.  However,  capital gains tax is generally much less than an income tax for people who can afford to make investments in the securities market.