Frequently Asked Questions
Q: How is Smith Shellnut Wilson any different
from my broker?
A: We are registered with the SEC as an investment adviser and
therefore we have a fiduciary duty to place a client's interests
first. Brokers have no such obligations. Typically
brokers are compensated and incented by the sale of their firm's
products. A broker's first obligation is to their employers.
Q: What does it mean to have a fiduciary
duty?
A: As your fiduciary, we have a legal and moral obligation to put
your interests first, above all others A fiduciary is legally
required to act in your best interest and is defined as “a person in
a position of authority whom the law obligates to act solely on
behalf of the person he represents and in good faith.” Examples of
fiduciaries are executors, trustees, guardians, and officers of
corporations.
Fiduciaries are not permitted to seek personal benefit from their transactions with those they represent. We take this responsibility very seriously.
Q: How does Smith Shellnut Wilson get compensated?
A: Smith Shellnut Wilson is a fee-only business. Generally, we charge a fee based on the percentage of assets under management
(AUM) for services rendered. We believe that this model of
business is the best way to ensure that the client's interests are
always first.
Q: Why is fee based better?
A: Some businesses give investment advice in return for fees based
on the transactions (buys or sells) that are generated for a client.
At Smith Shellnut Wilson we sit on the same side of the table as the client.
That is, it is in our best interest, as well as our client's, to
grow the investments. We don't have any incentive or pressure
to buy any particular investment, nor do we have reason to make
purchases or sales other than the tangible merits of the investment
as it relates to our client's investment needs. Quite
simply, we are NOT compensated in any way for choosing any
particular investment. You can rest assured that we take an
independent view of the market.
Q: How long is your contract?
A: We use an Investment Management Agreement (IMA) to communicate
the scope of the work that we will be doing for you.
They are written as one-year auto-renewing, however you have the
right to cancel at any time without cost or penalty. Simply
notify Smith Shellnut Wilson of your intentions. Since we bill in
arrears, you will be responsible for any pro-rated unpaid management
fees.
Q: I have multiple accounts at multiple
custodians. Can you help me?
A: Sure. In many cases, we can manage the investments and
leave them at your current custodian. Still, you may decide to
consolidate your portfolio at one of our custodians and simplify
your reporting while quite likely reducing your custodial costs.
Q: What types of accounts do you
service?
A: Nearly all. Seriously, we bring over a century of
cumulative investment experience and in that time we have dealt with
nearly every variation of individual, corporate and retirement
account that exists. We can help you make sense of the
numerous options available and advise you as to the best structure
and type of account to meet your investment needs.
Q: How do I know that my money is safe?
A: Smith Shellnut Wilson uses reputable custodians for all of our
clients. We do not accept or keep any deposits or securities.
When you partner with Smith Shellnut Wilson, you will have access to third party
custodial financial reports as well as our reporting.
This makes it very easy to reconcile your account activity and
balances.