Frequently Asked Questions
Herges Wealth Management
Do I have to commit to Herges Capital for a certain period?
No. Herges Capital has no minimum holding period. You may cancel services and withdraw funds at any time, even at short notice. However, you pay at least for nine months when initially becoming a client.
What is the minimum account size Herges Capital accepts?
The minimum investment is $100,000. Herges Capital starts with an even lower volume if it is expected that additional contributions within the coming six months would bring the size to the $100,000 threshold.
For the alternative investment strategy ‘trend-following’, the minimum asset requirement is an initial $300,000.
Why not applying the performance-fee-only fee structure from your alternative investment strategy ‘trend-following’ also to the other traditional investment offers?
The alternative investment ‘trend-following’ is futures trading. With futures contracts, it is just as easy to sell an asset as it is to buy. Consequently, the account manager is able to express and directly exploit price-directional views. In other words, one can possibly profit from bull and bear markets. Independent of the market’s direction, it is completely in the account manager’s ability to generate returns. Hence a performance-fee-only structure is possible and fair.
In contrast, traditional investments, offered by Herges Capital in its role as registered investment advisor, are long-only investments. We do not short-sell assets. That means portfolio performance will depend to a much higher degree on the upward direction of the stock market and prevailing interest rates. A bear market cannot get exploited easily nor directly. A pure performance-related fee structure would be unfair to the account manager as he/she cannot be held responsible for a general market downturn.
Still, there is a performance-related incentive to do well: As your assets grow Herges Capital’s compensation would also increase, as it is a percentage of assets under management. We do better when you do.
Can Herges Capital withdraw funds from my online broker account?
No. Technically that is not possible. Online broker money can only be transferred to a dedicated account of yours, an outside account in your name. Money cannot be transferred to a third-party account. Likewise, checks will only be forwarded to your home address on file. Those are important fraud protections.
How often do I pay Herges Capital’s fees?
Herges Capital sends quarterly invoices. A pro rata invoice would be sent when services are stopped before the end of the quarter.
Does Herges Capital charge for general advice?
Herges Capital earns fees exclusively through portfolio management. Only if we compose a portfolio, buy and sell securities in your account do you pay us quarterly in arrears. General consultation and advice on investments and other money affairs are not billed.
Are advisor fees tax-deductible?
You really have to consult your own local tax advisor.
Here in the U.S., the latest (Trump) tax act, effective 2018, eliminated those investment-related tax deductions altogether, at least on the federal level. Bad news for investors and the U.S. investment industry alike.
On a state level, you might possibly still deduct fees exceeding 2% of your California adjusted gross income. You will have to contact a specialist.
Why should I work with Herges Capital?
Herges Capital is an independent investment advisor. We don’t receive kickbacks from fund companies for selling their products nor earn commissions for trading. By federal law, we have to and indeed do work IN YOUR INTEREST ONLY. That is the highest, the fiduciary responsibility
But the main reason you should try Herges Capital and maybe even put us in parallel competition with your current financial advisor is cost- and tax-efficiency. Net you will have more money in your pocket.
Does Herges Capital manage foreign accounts?
Absolutely. As long as we have online access from the U.S.. Currently, we manage accounts in US $, Canadian $ and Euro.
Do I have to transfer my money to Herges Capital?
No. Herges Capital does not take physical custody of clients’ assets. Instead, you will maintain an account with an independent, qualified online broker-dealer and custodian. Herges Capital will trade on and manage YOUR ACCOUNT. That is important fraud protection.
Contact us for a free Consultation
Often an initial step for investors is to trustfully forward their latest broker’s statement for us to comment on. Common are also requests for fund recommendations out of a 401k program. In both cases, fees and sufficient diversification guides our reply.