Security & Privacy

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DOES ANYONE AT PROACTIVE WEALTH MANAGEMENT HAVE ACCESS TO MY MONEY?

No one at Proactive Wealth Management has access to the money in your account. We have limited power of attorney to do three things in a client account: 1) Trade securities with discretion, 2) request that TD Ameritrade/Charles Schwab send a check to a Client directly or to a Client’s bank, and 3) be paid a monthly management fee from the account based on the contract rate. We have no other access or authority.

​ARE MY ACCOUNTS INSURED FROM THEFT, FRAUD, ERRORS, OMISSIONS AND INSOLVENCY?

All accounts are insured on multiple levels. TD Ameritrade and Charles Schwab coverage is extensive and is explained in a public brochure that is available to all investors. Proactive Wealth Management also carries Errors and Omissions insurance for retirement accounts and pension funds.

HOW IS MY PRIVACY PROTECTED?

Proactive Wealth Management complies with all privacy laws affecting financial institutions. Each year, our clients receive a privacy statement that outlines this responsibility in detail. Those standards are reviewed on a regular basis to certify that they cover all forms of communication. Briefly, we will not release any information to any person who is not directly named on your account unless we have your permission to do so, with the exception of legal and regulatory authorities.

HOW DOES AN IAR DIFFER FROM A BROKERAGE FIRM?

IARs are in the investment management profession, and regulated by the Investment Advisors Act of 1940. In contrast, brokerage firms are primarily in the financial product sales and distribution business, and are regulated by the Securities Act of 1933 as well as other laws. As an IAR under the 1940s Act, we have a higher level of fiduciary responsibility than brokerage firms. We are mandated by law to act in our clients’ best interest. Our fee is based on assets under management (AUM) rather than the brokerage model that is tied to the sale of financial products.

 

Getting Started

 

HOW DO I GET AN INFORMATION PACKAGE?

Potential investors may request an information package by phone or email. For questions by phone, please call (801) 826-3985. For email questions, our email address can be located in the Contact Us section.

​CAN ANYONE GET AN INVESTMENT PROPOSAL?

We support anyone who is sincerely considering hiring a portfolio manager to request an investment proposal so long as they are financially qualified investors. However, we reserve the right not to write a proposal (or to withdraw a proposal) if we feel a person is not financially dedicated to a long-term relationship with our company or if that person does not agree with the guiding principles of our firm.

DOES PWM CHARGE A FEE IF I RECEIVE A PROPOSAL BUT DO NOT OPEN AN ACCOUNT?

Our investment plans are an examination we provide to you at no cost. We understand that choosing a financial advisor is an important long-term decision for you and your family. Because our investment strategy works best with a long-term commitment, we urge our prospective clients to consider our investment plans carefully before agreeing to our services.

WHAT IS THE MINIMUM ACCOUNT SIZE TO GET STARTED?

During the interview process, PWM will determine if the client will be a good fit for our services. Likewise, the client is able to determine if we are the best fit for the services needed.

WILL PWM GIVE ME COUNSEL ON ALL OF MY ACCOUNTS, EVEN IF THEY ARE NOT MANAGING THEM?

We only advise and manage assets that are set aside in specific TD Ameritrade or Charles Schwab accounts and placed under our care. We do not consult on financial assets a client holds outside of these managed accounts.

WILL YOU ACCEPT STOCKS, BONDS AND MUTUAL FUNDS THAT I TRANSFER IN?

We can accept securities into an account but most will not be retained unless they are the same securities that we used in your investment proposal. Our concern is to manage your portfolio to the best of our ability. That includes selecting and monitoring all securities held in your account.

WHAT DO I DO IF I HAVE MUTUAL FUNDS OR OTHER SECURITIES THAT I WANT TO KEEP?

Any investment that you currently own and want to keep should be placed in a separate self-managed account. We can help you set up a non-managed TD Ameritrade or Charles Schwab account; however, we cannot take accountability for the account or supervise the assets in the account.

 

Investment Approach

 

​AM I INVOLVED IN THE DAY-TO-DAY PORTFOLIO DECISIONS?

We believe an intelligent way to invest is by using emotion-free, proven investment formulas. By removing emotions from the investment process, our clients can invest confidently knowing each investment decision is rooted in academic research.

​HOW WILL I KNOW A TRADE HAS OCCURRED IN MY ACCOUNT?

TD Ameritrade or Charles Schwab will notify you by mail or email each time a trade is made in your account. All trades are conducted in accordance with your written Investment Policy Statement.

DO YOU PUBLISH THE PAST PERFORMANCE OF YOUR STRATEGIES?

As fiduciaries, we keep to the most stringent performance reporting standards. Each client receives a personal, quarterly performance report benchmarked to his or her investment policy.

WILL I HAVE INTERNET ACCESS TO MY ACCOUNT?

Yes, you may access your account(s) with Proactive Wealth Management 24 hours per day, seven days per week through the custodian’s client login. The client login section will display a basic summary of all of your account(s) with us, including your current portfolio value, current protected value, holdings and quarterly performance reviews. For access to more detailed account information, such as account activity and year-end tax reports.

​PWM also provides a link so that clients can view ALL their accounts in one place even if they’re not being managed or held by PWM. Clients can view balances, performance, allocations, detailed holdings information, weekly push updates, as well as secure data sharing and collaboration technology.

HOW OFTEN DO I RECEIVE STATEMENTS AND REPORTS?

TD Ameritrade or Charles Schwab sends monthly statements to all clients for all accounts. These statements show account balances, trades, cash flows, and unrealized gains. Statements are available in paper as well as through email.

WILL I RECEIVE REPORTS THAT WILL HELP WITH TAX PREPARATION?

At the end of each year, TD Ameritrade or Charles Schwab will send 1099s to each client that has a taxable account. In addition, a realized gain/loss statement is available online from TD.

IS THERE A COST TO TERMINATE THE AGREEMENT IF I AM NOT PLEASED WITH YOUR SERVICES?

No, Proactive Wealth Management does not charge a fee to terminate the agreement. Either party can terminate the Agreement at any time and for any reason. A concluding invoice will be drafted based on the number of days during the current quarter that the account was under management.

 

Asset Transfer & Withdrawals

 

Once you’re prepared to invest with Proactive Wealth Management, the first step is to create an account with our custodian, TD Ameritrade or Charles Schwab.

Once this custodial account has been set up, your assets can then transfer seamlessly into this account either by wire or check. From start to finish, the entire process usually requires three to five business days to complete. However, depending on the type of security to be transferred, it may take up to several weeks.  Typically we do not place securities into our portfolios that do not align with our investment strategy. We understand that many of our clients may have securities in existing taxable accounts and by selling those securities, a taxable gain would be realized. Should you not wish to liquidate a taxable security, we will arrange for those securities to be transferred into a non-managed TD or Schwab account under the same name as the managed account.

 

Withdrawing Assets

 

Clients may choose to withdraw money from a managed account at any time, either by automatic cash transfer, or by mailing a traditional paper check. Automatic cash transfers can move money electronically from your TD or Schwab account directly to your bank checking account. This process takes 24 to 72 hours, and the transfer is completed at no cost.