If my investment accounts are managed by Preferred Wealth Management, LLC, where are my assets and money held? Preferred Wealth Management, LLC utilizes Scottrade Advisor Services as custodian for our clients' assets.  Scottrade offers low $7.00 stock trades, no-fee IRAs, and 375 branch offices across the nation. Accounts are insured up to $25,000,000 and Scottrade consistently receives the highest ratings for customer satisfaction

What investment strategies do you use when managing client assets? We believe most clients are best served by the broad diversification available through no-load and load-waived mutual funds and exchange traded funds. At Preferred Wealth Management, LLC we create professionally diversified portfolios based on Modern Portfolio Theory. We use Exchange Traded Funds (ETFs) almost exclusively in the creation of client portfolios, keeping a watchful eye on internal expenses and tax efficiency. Preferred Wealth Management, LLC uses quantitative and graphical research to develop Strategic Core Portfolios and Tactical Satellite Portfolios. To increase income and reduce risk, we frequently write covered call options on portfolio holdings. This is an entremely conservative strategy that is appropriate for almost all equity investors.

While commission-free mutual funds and Exchange Traded Funds make up the lion’s share of client portfolios, the Chief Investment Officer has the ability to use individual stocks on a case by case basis. PWM does not specialize in active stock trading but prefers to invest in specific asset classes, sectors, and countries using ETFs.. Research indicates that hyper trading of securities in a portfolio is usually to the detriment of the investor and diminishes overall account performance. Our investment management services are best suited for the long-term prudent investor.

Does Preferred Wealth Management, LLC offer Certificates of Deposit (CDs)? Through our custodial relationship with Scottrade Advisor Services, our clients have access to a supermarket of fixed income products, including certificates of deposit (CDs).  By accessing our electronic database, we can scour the nation for the highest yielding bonds and certificates of deposit.     Does your firm recommmend annuities or life insurance products to clients?  On occasion, we do recommend insurance and annuity products to clients. Since Preferred Wealth Management is a fee-only firm, you can be sure that we are not making recommendations to generate a commission.

At our firm we believe in total disclosure regarding any compensation we earn or fees that you pay.  PWM believes you have a right to know. This may be a good time to remind you that our only source of revenue is fees from satisfied clients. Preferred Wealth Management,LLC has a fidicuiary responsibility to the client. That responsibility dictates that we serve as your advocate in the financial arena.   If you do not earn commissions from the sales of insurance or investment products, how is Preferred Wealth Management, LLC compensated? We operate on a fee-only basis. Our ideal client has a minimum of $100,000 invested with PWM and has placed their investment assets under our management. We charge an annual fee based on the dollar amount of those assets.

Assets Under Management (AUM) Fee Schedule.  Billed quarterly and debited from managed account(s)   Assets Under Management  Annual Fee $100,000 - $249,999 1.25% - 1.50% $250,000 - $499,999 1.10% - 1.25% $500,000 - $999,999 1.00% - 1.10% $1,000,000 + .80% -  .95%  Additional financial planning and advisory services are provided on a hourly fee basis or for a flat fee. Clients may want to address a specific financial concern or possibly desire a second opinion regarding insurance analysis, budgeting, or business and wealth transfer.  At Preferred Wealth Management, professional investment management and fee-only financial consulting is all we do.        Hourly and Flat Fee Schedule.  The flat fee is based on individual case complexity. 50% due at fact finding, 50% due at plan completion    Hourly Fee  $150.00  Flat Fee $500 - $5000   What types of financial planning do you do? Preferred Wealth Management, LLC can help you create a comprehensive financial analysis of your current situation. Our complete financial plan culminates in a 47 page document that accurately describes your current financial situation. We analyze your asset sheet, current budget, cash flow, and projections for your most important long-term goals. We can also focus on specific areas, tailoring our advisory services to address what is important to you.

Preferred Wealth Management, LLC is a Registered Investment Advisor registered with the Texas State Securities Board.  2323 Clear Lake City Blvd. Suite 180-144, Houston, TX 77062 Telephone  713-410-8899   Toll Free   800-304-1232   Fax   281-992-4756   contact@preferredinvest.com