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What is a fee-only investment advisor?

A fee-only advisor is one who is compensated solely by the client, typically through a combination of hourly, financial planning, and/or investment advisory fees, thereby eliminating any conflicts of interest. A fee-only advisor receives no commissions or other compensation from investments that they recommend. Only in this capacity can an advisor be a true legal Fiduciary.

Why is a fiduciary so important?

As a Registered Investment Advisor (RIA), Dorman Skorheim Wealth Management is required to have a Fiduciary relationship with our clients.

Not all of those who call themselves financial advisors are bound by this law.  Many brokers, or registered representatives, earn commission revenues on each trade and often sell proprietary products.  This system creates a conflict of interest in which the client’s best interest rarely comes first.

We believe that it’s critical that your advisor be compensated solely by fees, and that he/she is not influenced by any commission or any other type of remuneration from any investment. 

Dorman Skorheim Wealth Management is a fee-only fiduciary, which means that we will always act in your best interest as your trusted investment manager. We have no financial interest in any firms that help us serve you. We receive no commissions or third-party payments from anyone.

Where is my money held?

All client accounts are held by a qualified independent third party custodian in your name. DSWM (Dorman Skorheim Wealth Management) has selected TD Ameritrade Institutional because of its excellent client service, low costs, security and a dedication to operational efficiency.

Does anyone at DSWM have access to my money?
How is DSWM affiliated with TDAI (TD Ameritrade Institutional)?

DSWM is completely independent from TDAI. We are not compensated by that company in any way through fees, commission, or incentives. TDAI is the institutional division of TD Ameritrade that serves investment advisors. Our firm is supplied the necessary software that allows our in-house portfolio management system to work efficiently with TDAI’s back office operations and trading desks. This software is available to all investment advisors.

Will I have online access to my account?

Yes. Free access is available to clients through a special TDAI website 24 hours per day, 7 days per week. The website also is the source for immediate information on account activity and provides you with many reports including monthly statements and year-end tax information.

How often will I receive statements and reports?
Will I receive reports that will help with tax preparation?

At the end of each year, TDAI will send a Form 1099 to each client that has a taxable account. In addition, Dorman Wealth Management will send you a realized gain/loss report that will assist you in preparing your annual tax return.

Privacy and confidentiality?

Confidentiality is paramount to Dorman Skorheim Wealth Management clients. We will never share financial or personal information with anyone else without your express permission in advance.

How is my account insured?

Your account is not an asset of the custodian, and not subject to their creditors. They simply safeguard your assets. However, SIPC provides an additional layer of protection in the event of their failure.

SIPC (Securities Investor Protection Corporation)

Your account(s) at TD Ameritrade Institutional are covered by SIPC.  Importantly, SIPC does not protect against fluctuations in the value of your securities. Rather it covers account holders against loss due to fraud or theft in the event of a custodian’s financial failure.

SIPC is an often misunderstood yet essential part of our financial safety net that protects investors by helping to maintain order in the world of brokerage accounts. While a number of federal, self-regulating, and state agencies deal with cases of investment fraud, SIPC’s focus is very narrow. SIPC was not chartered by Congress to combat fraud, instead the SIPC functions to free up investor assets when they get bogged down in a financially troubled or failing brokerage firm. When a brokerage firm is closed due to bankruptcy or other financial difficulties and customers are missing assets, the SIPC steps in, and works to return the customers’ cash, stock and other securities. Without SIPC, investors at financially troubled brokerage firms might lose their securities or money forever or wait for years while their assets are tied up in court. However, SIPC does have limits with regard to the types of assets that it will cover and to what amount it will extend the coverage to individuals. In addition, individuals must maintain records to verify claims if items are missing.

Asset Coverage and Limits – SIPC coverage is extended to cash and securities, such as stocks and bonds, and it is not extended to commodities, futures contracts, unregistered fixed annuity contracts, or limited partnerships. You can contact the SIPC or your custodial firms directly to see exactly what assets in your account are covered. When verifying coverage through your custodian, make sure you get it in writing. Customers of failed brokerage firms are able to get back all of the covered securities that are already registered in their name or are in the process of being registered. After this first step, the firm’s remaining customer assets are then divided on a pro rata basis with the remaining funds being shared in proportion to the size of their respective claims. If sufficient funds are not available in the firm’s customer accounts to satisfy the claims within their remaining asset pool, then the reserve funds of SIPC are used to supplement the distribution, up to a ceiling of $500,000 per customer, including a maximum of $100,000 for cash claims. Additional funds may be available to satisfy the remainder of customer claims through excess insurance coverage purchased by the custodian.  TD Ameritrade Institutional provides this excess insurance coverage.

Why should I work with a boutique investment firm as opposed to a large brokerage?

We have a single mission: Improve your security and help you to meet your goals. We don’t manufacture product, sell anything, custody assets, underwrite new issues, trade our own accounts, make markets, or loan money. At best those activities are a distraction from the core mission, at worst they generate unmanageable conflicts of interest. We are independent of any outside control and free to devote our entire resources to meeting your unique needs.

Will you work with our accountant?

Of course, with your permission we will share financial information (i.e. tax estimates, realized gain loss information, minimum required distributions, etc.) with any of your other professional advisors.

Do you have an account minimum that you’re willing to manage?
949.831.3899 | info@dormanskorheim.com | Schedule a FREE Portfolio Review |