Frequently Asked Questions
You may have questions that you would like answered before contacting us. See frequently asked questions below.
Yes, Weatherstone Capital Management is registered with the United States Securities and Exchange Commission under the Investment Advisors Act of 1940 (Registration does not imply endorsement by the Commission or that the advisor has attained a level of skill or training.
We provide strategic solutions that have minimal trading which may be suitable for all registration types as well as tactical strategy that have a higher frequency of trades. Trades made in tactical strategies are short-term in nature, and because retirement plans and annuities grow tax-deferred, they are particularly well-suited for this type of investing.
The portfolio manager chooses the combination of investments within the accounts that are most appropriate for the current investment environment.
All programs can begin with a minimum of $25,000. Smaller amounts require special approval. We can begin managing your portfolio with either a cash investment or a transfer of mutual funds or variable annuities. We can also help you roll your qualified retirement plan into an IRA without incurring any penalties.
For the tactical strategies, we have the ability to monitor accounts daily. If circumstances warrant, such as market irregularities or a specific client need, we can review and make changes immediately. The strategic portfolios take a longer-term time horizon into account. And while we monitor them regularly, chances are, they will not trade very frequently.
If you have a tactical strategy it will consider circumstances in the markets that change, such as war, natural disasters and other negative economic indicators. The portfolio may change to a defensive asset allocation until the market again looks favorable. Your portfolio may also change depending on the various seasonal periods of the year. You will receive confirmations or statements informing you of the trades and of the new asset allocation from the investment company where the funds are being held. The strategic portfolios are designed for investors who are looking for long-term growth. Short-term impacts caused by the markets to the portfolio will not affect the asset allocation. The portfolio will be rebalanced regularly and occasional minor shifts to the asset allocation will occur.
This depends on the program or strategies being utilized. Some programs trade as few as once a year, while others (tactical) trade several times a month. Tax-deferred accounts are best suited for those programs that trade frequently.
Your Investment Advisor will consult with you prior to any initial investments that are made. They will discuss our different investment strategies and what you can expect from those strategies. How we plan to invest from a strategic standpoint will be discussed with you as we report to you throughout the year. However, Weatherstone will not discuss each and every trade with you. You may, of course, call your Investment Advisor or Weatherstone to discuss any moves we have made.
No, the accounts will always remain in the client’s name. We will only move money between investment vehicles and money market funds. This limitation is clearly stated in our management agreement.
Each client will receive statements and possibly proxy material directly from the participating investment company. (custodian) In addition, you should receive the Weatherstone quarterly newsletter typically bundled with the statement. Tax documents, if applicable will be sent directly from the custodian.
Accounts are charged a flat percentage fee for its advisory services, based upon total assets under management for a client at the beginning of the calendar quarter. Management fees are billed in advance for the upcoming quarter. Your investment account will be debited directly for the fees. The management fee decreases as the size of your account increases. Please refer to the fee schedule for specific fee information.
No, we are compensated through a quarterly management fee and we do not receive any additional compensation for making trades. Most of our trades are made without any transaction fees.
We of course would like you to stay with our services forever. However, there is no obligation to do that. We disclose in our contracts that clients are allowed to terminate service with us at any time upon written notice. We will require payment of any fees owed through the date of termination.
No. Investment decisions are based upon historical research and data believed to be reliable, but there is no guarantee that future performance will conform to the past, nor that it will be profitable.
The success of any of the Weatherstone Capital Management programs are best reviewed over a complete market cycle. This typically includes both a bear and bull market or a series of years, typically 3-6 years. This provides an opportunity to evaluate the performance during both good and bad times and make a more informed decision about its effectiveness. Typically as a new portfolio is placed into a strategy it can be significantly influenced by the market direction. There needs to be sufficient time provided to allow the strategy and management to make a marked difference. A short period to evaluate a new strategy is not indicative of how it will perform over a complete market cycle. Due to the nature of tactical management that seeks to avoid large losses in portfolios, there will be times when on a short-term basis they lag market returns in a strong bull market rally. This is to be expected. However, a more noticeable difference can be seen as a bull market gives way to a bear market and the portfolios maintain a larger portion of the principal which in the end makes a greater difference for investors who are seeking consistent returns to fund retirement dreams.