FAQ's How does SPC develop investment strategies? Each client portfolio is tailored to their specific income tax and risk tolerance objectives. For these reasons, we do not have audited performance history of our client’s investment strategies. We do utilize various models and analysis and may buy many of the same investments for our clients. An examination of financial, tax, and estate documents, along with risk assessment and retirement aspirations, will be explored. What type of investments do you offer? We do not sell proprietary products nor are we required to buy certain investments for our clients. We have a vast universe of investments available to our clients and we make recommendations based on your situation. How does a fee based relationship work compared to a traditional commission? A fee based portfolio charges a flat percentage fee based on the value of the account. This fee is an annual fee and is deducted quarterly from the portfolio. There are no trading or commissions based on the purchases or sales under this relationship. Compare this to a traditional commission based model where the broker earns a fee whenever a client buys or sells a security. How does your financial planning process work? We start by scheduling an initial fact find meeting. The purpose of this meeting is for us to learn more about your unique needs and to determine if we have the appropriate skills for your goals and objectives. It is also an opportunity for you to determine if we would be a good fit for your goals and objectives. If we collectively decide to move forward, we will begin the process of compiling all of your financial documents and begin to develop the initial plan. Our next meeting is where we will present your customized financial plan and go over the initial implementation steps. We schedule a follow-up meeting within 30 days to review your questions or changes you may want to make to your plan. If we then move forward we begin to implement your plan and review the progress quarterly. We will typically meet with clients 3-4 times in the first year of our relationship and then annually thereafter. However, we are always available to meet should there be a need. How often do you meet with clients? We meet with our current clients at least annually. Many clients find that additional meetings are needed during transition points such as marriage, death of a family member, birth of a child, job/career change, approaching retirement, change in personal situation. How often are clients’ portfolios reviewed? Each investment advisory team routinely conducts a comprehensive portfolio assessment and its impact on changes to tax laws, investment environments, and financial, as well as employment status. What does “discretion” mean? Discretion allows your advisor to make buy and sell decisions in your portfolio without having to verbally confirm the transaction. Discretion is important for us to make timely investment strategy changes. If I become a client, do I need to stay a client for a certain period of time? No, the relationship between a client and SPC Financial® can be severed at any time with written notice. Will you meet with me even if I have no assets? Yes, provided we are able to help with your needs and goals and you are committed to helping to improve your financial situation. Do you provide any additional services? Many of our advisors are also insurance licensed and are able to help implement life, disability and longterm care insurance plans. In addition, we offer tax preparation and planning services for individuals, families, business, estates and trusts through our related firm Sella & Martinic, LLC. Can you serve as a trustee, POA, executor, etc.? We are not able to serve as a trustee, POA, executor or in any other legal capacity for our clients except under very limited situations. Do you provide legal services? No, we are not attorneys and do not provide legal advice. We can work closely with your attorney to help implement your plan. Do you charge for an initial introductory fact find meeting? Our 2-hour comprehensive initial consultation meetings are complimentary and there is no obligation to move forward. How long does it take from when I request monies from my portfolio to have them in my bank account? If there is cash available in your account, we strive to have the funds to you by the next business day. If you do not have sufficient cash available in your account and we need to sell investments, we ask clients to provide 5 business days’ notice. If funds will be sent by check, please allow additional time for the mailing of the check. What is Insights® by SPC Financial®? Insights® by SPC Financial® is an online financial hub for all of your financial accounts. By using the system, you are able to aggregate your various financial accounts to get a complete picture of your financial life at any time. This tool also provides an online vault to store important documents, downloads spending data to help manage your personal spending and income plan and other tools. Is client information secure? The protection of private, personally-identifiable client information is of the utmost importance to SPC. SPC, its employees, and third party vendors work diligently to ensure that client-sensitive information is protected, encrypted and securely stored. How do I request transfers from my joint account and how long should the transfer take? We generally recommend that a client contact his/her advisor 5 business days before funds must be received in order to ensure that liquid funds are available. What’s your investment philosophy? For the past 4 decades, SPC Financial® has strived to understand our clients’ individualized investment goals and objectives to best meet their needs. We establish and allocate our accounts strategically and tactically generally utilizing low-cost, passive securities with a focus on tax-efficiency to help allow our clients’ portfolios to grow over time, while managing unforeseen downside risk. What is your (Advisor) best means of contact? Each client relationship is unique. You and your advisor will decide together how you as a client would like to communicate to ensure that our service model meets your personalized needs and goals. How do I stop receiving paper confirmations and prospectuses in the mail? You can easily choose your document delivery preferences by letting your financial advisor know or by logging into your online account and making the changes yourself. Why can't I send you an e-mail with the requested information (e.g., PII)? Given the increasing risk of identity theft, we strongly recommend that any personally identifiable information be sent either by fax, regular mail or encrypted email or through our portal. I would like to be able to contribute to my accounts via online transfer as my cash flow permits? How can I set this up? Please let your Advisor know and they would be happy to establish or facilitate this transfer. What is the difference between JTWROS, T/B/E and TIC? JTWROS - Property held in JTWROS is shared by several owners. Control, ownership, and enjoyment of the property are shared equally by all the joint tenants. Income from income-producing property is split equally among all joint tenants. The distinguishing feature of joint tenancy is its survivorship feature. Upon the death of each tenant, the property immediately passes to the surviving joint tenants in equal shares. This means the property is not controlled by the terms of a will and will be excluded from the probate estate. T/B/E - Ownership can only be held by a husband and wife. Control, ownership, and enjoyment of the property are shared equally by both of the joint tenants. The distinguishing feature is that the property is protected from the claims of each spouse's joint creditors. At death the property passes automatically to the surviving spouse. Not all states permit this type of ownership, the only states that allow Ten/By/Entry accounts are AR, DE, DC, FL, HI, IL, IN*, KY, MD, MA, MI*, MN, MI, MO, NE, NH, NJ*, OK, PA, RI, TN, VT, VA, WY*. *Not all of these jurisdictions recognize a tenancy by the entirety in personal property. The tenancy does not exist generally in personal property. TIC - Property can be owned by several owners simultaneously. Each owns an undivided interest in the property and is entitled to a division of income from income-producing property according to their respective interest. Owners are free to transfer their respective shares of the property to other individuals. There are no survivorship rights, and the interest of a deceased owner will pass through their probate estate. Are my retirement accounts protected from creditors? Creditor protection is subject to state law. You should consult with your legal advisor regarding creditor protection strategies. If I receive confirmations and prospectuses electronically, can I continue to receive monthly statements in the mail? Yes.