Revere Asset Management
President & CIO
Daniel Stewart is President & CIO of Revere Asset Management and has been providing financial services and portfolio management for over twenty years. Revere Asset is a Fee Based RIA which Always Acts as a Fiduciary in the Best Interest of its Clients. Prior to joining Revere Asset Management, Dan advised on investment portfolios exceeding $200M. He is also well versed in comprehensive planning including corporate, individual, and estate planning.
Dan joined the NorAm Capital team in 2010 to create and manage their Private Wealth Management firm. This eventually led Dan to buy the business and rename it Revere Asset Management. He graduated from The University of Texas at San Antonio with concentrations in Finance and Accounting. Dan has passed the CPA Examination on the first attempt and subsequently earned his CFA® Charter (Chartered Financial Analyst).
Dan, a native of San Antonio, Texas, is married with 3 children. Dan played NCAA tennis on a full scholarship at Vanderbilt University. He played professional tennis on the United States and European circuit and was then the Head Tennis Professional at both the Retama Polo & Tennis Club and Thousand Oaks Indoor/Outdoor Racquet Club, in San Antonio, Texas.
Chartered Financial Analyst (CFA®), BBA in Accounting
Assets Under Management:
Fee Based Only - Fiduciary with No Conflicts of Interest
#Yes Primarily Term
No information presented constitutes a recommendation by Revere Asset Management, to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities by Revere Asset Management. Revere Asset Management does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
It all depends upon whether it is active management or passive management. I am an active, fee based only manager and charge anywhere from 1% to 1.6% depending upon strategy and how much work it entails. For passive "pie" charts, you should only pay around .10% to .25% because you could easily do a passive strategy yourself with a little research and there is very little maintenance. For a "blended" strategy which would be some L-T passive, it is called "strategic", and some M-T active, called "tactical:, fees generally range around .70% to 1%.
Then, there is a whole broker/insurance group who rely on commissions. Annuities fall into this category and commissions can be as high as 8% to even 10% of the principal placed in the annuity. I vehemently disagree with this approach because there is a conflict of interest. And there are actually commission free, fee based only annuities but you never hear about them. Most fee based advisors only act as your Fiduciary with your best interest first.
The most important thing is to do your homework and know HOW the advisor is getting paid. It is not necessarily about lowest costs/fees, but the value you are getting for those fees.
Hope this helps, Dan Stewart CFA®
That's the million dollar question in this QE world of near zero interest rates. The Central Banks have flipped investments on their head and there is truly nothing completely "safe" anymore that will pay you anything reasonable. With interest rates now on the rise, this puts bonds and bond funds in a much riskier position, and you are right, CDs and Savings Accounts won't even keep up with inflation and is a guaranteed loss of purchasing power.
So the question is what to do. In my opinion, the most attractive risk/reward right now is in the very large dividend paying stocks based upon what you stated above. But you do need some type of sell discipline in place so if the whole market begins to implode, you have an exit strategy. 75% to 80% of all stocks will follow the general market direction. So, bad stocks will go up in an uptrend or bull market, and conversely, good stocks will go down in a downtrend or bear market.
You don't want to short term trade, but need some solid mid-term technical indicators so you can separate the signal from the noise. You want to determine the main, big picture trend of the market. I know this is not what you want to hear, but it is the truth in my opinion.
This is also in isolation, not knowing what you are currently doing with your other assets, which could have an effect on my answer.
Hope this helps, Merry Christmas. Dan Stewart CFA®
Roth distributions are tax free and not counted as income. You stated above that your were going to "withdraw funds from my 401(k) & IRA." Are those Roth 401(k) & Roth IRA? Because if you are talking about "converting" your before tax 401(k) and Regular/Rollover IRA into a Roth, then that whole conversion is taxable.
I would think long and hard before doing that. Many advisors do like that approach, but usually the math doesn't play out due to the loss of compounding the portion you paid in tax. I would almost always take a current tax deferral or deductions than pay now in order for a future tax benefit. You never know what the rules may be.
Best of luck and Happy Holidays, Dan Stewart CFA®
Whenever there is a major change - company structure, merger, etc.. there is a "blackout period." Even simply switching a Third Party Administrator (TPA), which is the plan's "accountant," can trigger a blackout period. Under ERISA guidelines, this can take up to 90 days (max), but this should have been disclosed to you before the blackout period so you could make any necessary changes to your allocations of funds.
It is probably nothing to be alarmed about and is just the switching over to a new provider, TPA, or due to the merger itself. But it is definitely worth the phone call to HR. They should be able to give you answers, especially on your own withholdings which are always 100% vested and yours. Remember, this should have been disclosed before any Blackout Period.
I would say this though, you may have an opportunity to rollout your existing balances to an IRA Rollover where you have complete control and are not limited to their plan's investment choices, usually 12 or less mutual funds. Whenever there is a major change in the plan, which this sounds like this definitely qualifies, you must be given that option because it changes your original "deal" and you may not want to contribute your already accumulated assets going forward.
This doesn't preclude you from contributing and making new contributions to the plan, it just allows you to rollout your existing balances into an IRA Rollover. It will almost certainly provide you with more flexibility. In fact, as people change jobs, they should normally roll each old balance into their IRA Rollover and begin fresh with each new 401(k). This way, they will accumulate a nice rollover with unlimited options along with a 401(k). Hope this helps.
It's never to early to begin saving, whether it be for college, retirement, or otherwise. If you are talking about for your kids, though, I am not a big fan of 529 Plans. This is because they have limited investment choices and you can only make changes once per year. I would rather open an individual or joint (with spouse) taxable investment account, pay the tax, and have control of my destiny.
Educational IRAs are very limited in how much you can put in each year, but does leave you with more choices and flexibility. Uniform Trust to Minors Act (UTMAs) & Uniform Gift to Minors Act (UGMAs) are not as common anymore for some very good reason. You are gifting, or giving away control, of the assets. So while you control minors, once they reach the "age of majority," either 18 or more often 21, they can raid the account and buy a little Red Corvette (or worse) and there is nothing you can do to stop them. There are actually seniors in college teaching classmates how to raid their accounts.
For this reason, I usually prefer counseling my clients to have their own investment account that they can own and control. When the time comes, write a check. This is not what you will hear from the mainstream investment community. I want to think my child will be very responsible (and have been blessed as they are), but a lot of things can happen.
That said, these are tools which can be used for other planning. For instance, wealthy grandparents could use a 529 Plan to gift $50K into the plan and remove from the estate. So, the lack of investment direction and control is offset by a high estate tax (55%) once you are over approximately $11M joint & $5 1/2M individual. If you have complicated issues, seek advice. But for someone starting out early, I usually advise to save early in an account that you can keep and have control. Hope this helps.