1.  How do we get paid?

We get a fee based upon the value of the account under management.  The fee typically ranges from .5% to 1.5%, depending on the size of the account.  For accounts under $50,000, we get paid a commission. 

2.  Can portfolio management services be used in a qualified retirement account?

In most cases, yes. 

3.  Is there a minimum account size?

Yes.  For fee based services there is a minimum account size of $50,000.  There is no minimum for commision based services.  We feel that the smaller accounts have just as much need, if not more so, for our services as our wealthier clients.

4.  What is churning and how do I know if my broker is doing it to my account?

Churning, simply put, is excessive trading an account, solely to generate commissions to the broker.  It is also known as overtrading.  A quick rule of thumb to determine if your account is being churned is to look at the portfolio turnover rate.  To do this, simply divide the dollar value of the lesser of purchases or sales for the year by the average value of assets held for trading.  If the result is greater than 1, you should do some follow up.  You may have a case of churning.  Even if it is not a clear case of excessive trading, your account is not being handled in a tax efficient manner. 

Another approach to churning is to look at the commissions percentage earned.  If an account earns a broker more than 3% (total annual commission costs divided by total assets held for trading) there may be evidence of churning.

5.  We can't lose money by buying bonds, can we?

This is one of the more common misconceptions we run into.  Though buying debt obligations of the United States is considered the "safest investment," you can lose money.  If you need to sell the bond before maturity, you may end up selling it at a loss.  As interest rates fall, the value of your bond increases.  As interest rates increase, the value of your bond falls.  So if you bought a bond when interest rates were low and you have to sell when interest rates are higher, it is possible to lose money.  Another way to lose money on a bond is for the issuer to go bankrupt.

6.  What is the relationship between The WealthWise Company and Medallion Advisory Services, Inc.? 

The employees of WealthWise are contracted by Medallion Advisory Services, Inc. to provide financial advisory services to investors.

7.  Do you have other services available? 

Yes.  Listed below are some of our more popular services.