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FAQ's

Here are a few questions that prospective clients ask frequently when we have our initial investment meeting with them. Please let us know if you have any other questions.

Which organization oversees and regulates Intelligent Investment Management, LLP?

Intelligent Investment Management, LLP (IIM) is a State Registered Investment Adviser Firm regulated by the Colorado Division of Securities. To verify the Firm’s status as a Registered Investment Adviser Firm, you may follow this link to the Securities and Exchange Commission’s Website here: http://www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx then click the Investment Adviser Search in the left hand column.  From here you can type in the firm name (Intelligent Investment Management, LLP) or search by CRD #108833 or by SEC Registration #801-64029. With the results you can follow the links to the Firm's form ADV filed with the regulators and view the Firm registration status.

What is a CFP Professional?

A CFP® professional is an individual who has a demonstrated level of financial planning technical knowledge, experience in the field and holds to a client-centered code of ethics.

Four E's to becoming a CERTIFIED FINANCIAL PLANNER™ Professional

Education
CFP® professionals develop theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum registered with the Certified Financial Planner Board of Standards, Inc.

Examination
CFP® professionals must pass a comprehensive two-day, 10-hour CFP® Certification Examination that tests their ability to apply their financial planning knowledge in an integrated format.  Based on regularly updated research of what planners do, the CFP® Board's exam covers the general principles of financial planning, insurance planning and risk management, employee benefits planning, investment planning, income tax planning, retirement planning and estate planning.

Experience
CFP® professionals must have a minimum of three years’ experience working in the financial planning process prior to earning the CFP® mark. As a result, CFP® professionals have demonstrated a working knowledge of counseling skills in addition to their financial planning knowledge.

Ethics
As a final step to certification, CFP® professionals must pass an ethics review and agree to abide by the CFP® Board's Financial Planning Practice Standards and a strict code of professional conduct, known as the CFP® Board's Code of Ethics and Professional Responsibility. The Code of Ethics states that CFP® professionals are to act with integrity, offering professional services that are objective and based on client needs.

Re-certification
It is also necessary for every CFP® professional, once certified, to complete re-certification every two years. Those seeking to maintain their certification must attain a minimum of 30 hours of continuing education in order to stay current with developments in the financial planning profession and to better serve their clients. Two of these hours must be spent studying the CFP® Board's Code of Ethics and Professional Responsibility or Financial Planning Practice Standards.

How do I verify the CERTIFIED FINANCIAL PLANNER™ Designation?

To verify the CERTIFIED FINANCIAL PLANNER™ designation, visit the CERTIFIED FINANCIAL PLANNER™ Board of Standards website and follow the process to search a CERTIFIED FINANCIAL PLANNER™ professional.

What is a fiduciary?

A financial advisor held to a fiduciary standard occupies a position of special trust and confidence when working with a client. As a fiduciary, the financial advisor is required to act with undivided loyalty to the client. This includes disclosure of how the financial advisor is to be compensated and any corresponding conflicts of interest.

What type of authority will Intelligent Investment Management, LLP have over my accounts?

As your Durango based State Registered Investment Adviser Firm we will have the authority to:

  1. Make transactions in your TD Ameritrade Institutional account in order to allocate your investments according to your financial plan and the Investment Policy Statement created for you.
  2. Request a check be sent directly to you, or a transfer be made to a like named account. No funds can be withdrawn or likewise transferred out in any other name except for your own.
  3. Deduct management and investment advisory fees from your accounts per our Investment Management Agreement and Fee Schedule. Account debits in excess of the normal or usual investment advisory fees (noted in our form ADV which is on file with TD Ameritrade Institutional) are not allowed. TD Ameritrade Institutional has safeguards in place to prevent excessive investment advisory fee debits from being processed.
  4. View online, monitor, maintain and discuss your accounts directly with you.

Are your fees tax deductible?

IRS Code Section 212 states that investment advisory and financial planning fees incurred may be deductible as miscellaneous itemized expenses to the extent that they exceed 2% of your adjusted gross income. Other miscellaneous itemized deductions which fall into the same category are fees paid for a safe deposit box, estate planning fees, tax preparation fees, attorney and legal fees and more. So the short answer is fees paid for investment management services may be deductible and we encourage our clients to ask their accountant or CPA about the deductibility of fees.

Can you take custody of my money?

No. TD Ameritrade Institutional has custody of your investments. Custodians have implemented safeguards to protect you and your financial assets. For example:

  • Any funds leaving your account will only be sent by the custodian directly to your address of record and in your name. Your address will not be changed by anyone in our office. We will, however, give you telephone or online instructions on how to update your physical and/or mailing address with TD Ameritrade Institutional.
  • Any money transferred out of an IRA account (with the exception of the Firm’s investment management fees) may only be transferred into an account with the exact same registration. For example, an account in the name of John and Jane Doe may only transfer to another account in the exact name of John and Jane Doe. For non-IRA accounts, fund distribution is subject to approval from TD Ameritrade Institutional through “Move Money” forms provided to our office that the account owner must sign.
  • TD Ameritrade Institutional retains on file a copy of the Firm’s most current Form ADV and reviews billing fees that Intelligent Investment Management, LLP submits to insure fees are not billed in excess of the stated billing schedule.

Do you have Professional Liability Insurance (E&O)?

Yes. The Firm carries professional liability insurance in the amounts of $1,000,000 per claim maximum and $2,000,000 per year total. If you would like a copy of our professional liability insurance policy please contact James Brost to request a copy.

Is my information safe with Intelligent Investment Management, LLP?

Intelligent Investment Management, LLP maintains state of the art security measures. While no guarantees can be made in the current day and age of cyber hackers and other criminals, we have consulted with our technology providers who feel confident that we are doing what we can to protect our clients to the fullest extent available. We are very concerned with computer security and take this matter very seriously. In addition, we test our security measures on a regular basis.

Is my information confidential?

Yes. By law we cannot disclose your private information to anyone but you, or your other financial advisors (attorneys, accountants, estate planners) with your written consent. Our clients' information is highly confidential and we take this matter very seriously.

Why do you use closed-end mutual funds (CEFs) for many of your portfolio equity investments?

In the process of developing a model portfolio, we found that CEFs can produce excess returns as value driven, discount-based investments. As exchange-traded securities, CEF managers are not influenced by the buy or sell decisions of the fund's shareholders (unlike open-end mutual funds which are required to deal at net asset values directly with the fund holders).

We believe the management of CEFs is more efficient since they tend to have smaller pools of assets and the funds operate at generally lower levels of cost than larger open-end mutual funds. Each client's model portfolio includes a globally diversified mix of CEFs reflecting both growth and value investment characteristics.

Do you guarantee returns?

No. We absolutely do not guarantee returns whatsoever.  We put together solid and focused financial and retirement plans for our clients which are designed to help them achieve their goals. Financial and investment planning is more of an art than it is a science, and we cannot predict the future nor guarantee returns in any form.

May I speak to some references?

Absolutely! We work diligently for all of the Firm's clients and as such, the overwhelming majority of them are happy to provide a reference regarding the Firm’s services. While not every client chooses to provide a reference (some high profile clients wish to maintain their privacy), you can contact Intelligent Investment Management, LLP, and we will be happy to contact our clients for permission to pass along their names and email addresses or contact numbers.

Do you hold my money directly?

Absolutely not. We will not hold or take custody of cash or securities in any form for any time frame. We will however forward checks and/or securities directly to TD Ameritrade Institutional, by the next business day via overnight delivery service.

Is my money safe at TD Ameritrade Institutional?

TD Ameritrade Institutional is a member of the Securities Investor Protection Corporation (SIPC), assets custodied with TD Ameritrade Institutional are insured by SIPC up to $500,000 for each separate account. For details, please see www.sipc.org

Additionally, TD Ameritrade Institutional provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers.

Such insurance DOES NOT protect your investment principal from market fluctuation or volatility; however it does provide protection in the event of your custodian going out of business.

What type of investment management reporting do clients receive?

Intelligent Investment Management, LLP (IIM)  trades securities through TD Ameritrade Institutional. They do not charge any custody fees. Trades initiated by IIM are executed by TD Ameritrade Institutional.  Trade confirmations and monthly account statements are provided by TD Ameritrade Institutional. Clients can receive these in either paper or electronic format. IIM sends quarterly performance reports to all of its clients in either paper or electronic format. Reports sent electronically will be uploaded to a secure online client specific AdvisorVault account.

We utilize Advent Axys, a comprehensive performance reporting package to help us provide clients their quarterly performance reports. All account activity is downloaded and reconciled daily. This data is stored in IIM’s computer database and backed up locally and remotely.

How often is a client updated on their portfolios?

We provide quarterly performance reports, which specifically state the beginning balance, contributions and withdrawals, the different sources of return, the ending balance, and the percentage and dollar return net of fees during that time frame. We also send to each client a monthly letter that addresses a variety of investment and economic issues.

The client will also receive from TD Ameritrade Institutional a monthly statement via mail or an email notice informing them that they can view their statements electronically.  Statements list their securities and the associated current values as of month-end. Furthermore, as securities trades are executed, each client will receive a confirmation statement with full details of each buy or sell.

Are your fees competitive compared to other providers?

Our Firm fees are not only competitive; they’re a great value for the services provided and value added to your financial and investment planning!

We are happy to provide you an apples to apples comparison of the fees you are paying another advisor (or the proposed fees you will pay another financial advisor) and our fees. Our fees are simple to understand and reasonable. Most importantly, we believe in FULL DISCLOSURE – so we never hide or bury our fees like other brokers or “financial advisors” who are commission or "fee-based" (not fee-only).

Can you provide advice related to my retirement plan at work?

Yes, as part of the financial and investment planning process we can help ensure your investment assets, both through work related retirement plans and separately held at the directed custodian, will work in concert together.