Frequently Asked Questions

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Whiston Asset Management Group's Proprietary Managed Portfolios are tailored upon determination of the clients risk tolerance and selected based upon investment objectives.  

After meeting with your Advisor and setting out your goals;  Your Registered Investment Advisor (RIA) will determine appropriate allocations into various risk and objective models consisting of different stocks, bonds, ETF's, mutual funds or if needed tax deferred annuities to help you achieve your goals by diversifying your investments and allocating them among the appropriate asset classes. Whiston Advisors will monitor your investment progress and make the necessary adjustments to re balance model allocations or change positions based upon market outlooks and to meet the changing economic and financial markets. 

Proprietary Research has consistently shown that asset allocation is the most important factor in determining a portfolio's total return.  

Whiston Asset Management's focus' on reviewing the expertise of institutional money managers who invest for some of the nation's largest corporations and pension funds.  Access to top-quality managers is usually limited to very large multi-million dollar accounts.  Our research is proprietary, intellectual property that is independent and unbias.    (Clients participate in non-transferable Proprietary portfolio models that are the intellectual property of Whiston Asset Management, RIA, the manager) 

How is Performance measured?

To monitor your progress IBKR  will provide you with a customized quarterly-consolidated statement.  You also have 24 hour online access to your account.  Performance is measured against the appropriate indexes.  Every year your investment advisor will meet with you personally in order to review ongoing performance and to restate objectives.  Whiston Advisors will also provide a Schedule of Gains and Losses for all of your taxable accounts.  This report provides you with IRS Schedule B and D information which will save you accountant fees.

Whiston Asset Management (WAMG) offers Managed Discretionary Accounts (MDA's).   

MDAs are discretionary investment accounts that permit a money manager  to trade investments without the investor’s approval for each  transaction. WAMG has the ability to select, buy and sell securities for  the proprietary models that make up your portfolio.  All model portfolio's are considered the "intellectual property of the manager" Whiston Asset Management.  Clients provides the custodian with a signed Advisor Authorization for the facilitation of depositing or distributing funds to and from managed  portfolios directly to your designated bank accounts, by wire or ACH.  Distributions require redemption's from the model.  Signed Distribution forms may also be necessary.   Third Party distributions require indemnifications.

 As an investor, WAMG offers you a separate account of various proprietary model portfolios of  various securities according to your risk tolerance and needs. Unlike investing in a mutual fund. Here you own the securities in your separate  account, unlike in mutual funds where you hold units in the fund. Since  you have direct share ownership of securities, you enjoy greater  transparency and tax efficiency. 

Am I locked into Whiston Advisor Managed Portfolio's?

NO, you may cancel the Whiston Advisor service at any time in writing by certified mail.  

Upon termination by either party, Your portfolio's participation within models will be liquidated* and charged for the remaining portion of the current annual fee.  Accounts with special* discounted management fees will be charged the minimum 10% performance bonus based upon the YTD capital appreciation.  Fee arrangements can vary.  

Clients participate in Proprietary Model Portfolio's that are not transferable and require redemption's from the model.  WAMG Proprietary Models are considered intellectual property of the manager.  Termination fees will apply.  

Annuity products are used for tax deferred long term plans and can be subject to insurance company redemption fees or tax penalties that may apply separately.  *Unlike other proprietary securities models Indexed Annuities can be re-registered and transferred upon termination of services.

How do I withdraw money from my Managed Portfolio's?

Distributions require "redemption's" from the models in the portfolio participates.  

Redemption's are needed to generate the necessary cash to meet the distribution request.  Withdrawals are facilitated through your advisor who will submit requests to the custodian to distribute the cash via your choice of check, wire or by ACH.   An Advisor Authorization to send distributions to a specific bank can be established and the Advisor can transfer directly to a bank account with the same registration.  All third party distributions require a signed distribution form and a letter of indemnification to the advisor.

Will all trades be profitable?

NO, Whiston Advisors cannot guarantee results, and there may be times when losses can occur in our attempt to avoid larger losses.  However, we believe that the asset allocation diversity strategy can minimize your investment risk.  A three-year commitment is suggested to allow for various market conditions, economic changes and business cycles.

YES, Stocks, Bonds, ETF's Mutual Funds and Variable Annuities are suitable investments for IRA's, SEP's, SIMPLE's, 401K's, 403(b)(7)'s, Profit Sharing Plans, Defined Benefit and Defined Contribution Plans, and Keogh's.

Employers act as Fiduciaries and may be relieved of liability from losses under ERISA Section 404c as long as they "educate employees about risks associated with investing".  Stockbrokers and Insurance Agents do not meet these requirements, however as a Registered Investment Advisor Whiston Asset Management can assist you with this process, because we can accept that Fiduciary Responsibility.

YES, the minimum account size is $10,000,000.  Arrangements may be made for other amounts.

The truth is that there are several ways a financial advisor can be compensated. Understanding financial advisor compensation can help you to select the right advisor who puts your interests ahead of their own.   Management Fees are negotiated based upon the account size and can vary.  Special* Reduced Management Fees are compensated with an additional Performance Bonus (minimum of 10%) .  

The client can choose a (1) full fee or a (2) Reduced fee with an additional Performance Bonus.  The Management Agreement provides details.

All fees are annual and charged quarterly.  The full year's fee is collected prior to termination. The Performances Bonus' of a minimum 10% applies to all customized discounted management fee programs and are payable on the yearly account anniversary or early termination.  

Refer to your signed Management Agreement for further details.  

Fees apply to as long as the assets are at the RIA's Custodian. Fund operating expenses may also apply.

Understanding Performance Bonus Rule 205-3 under the Investment Advisers Act of 1940 governs the circumstances under which investment advisers can enter into performance-based fee contracts with clients. Typically, advisers are prohibited from charging fees based on a percentage of capital gains or appreciation of a client's account, unless the client qualifies as a "qualified client".

Key Provisions of Rule 205-3:

1. Qualified Clients: Investment advisers can charge performance-based fees only to clients who meet the definition of a "qualified client." A qualified client is one who meets at least one of the following thresholds:

Net worth: A client with a net worth of $2.2 million or more, excluding the value of their primary residence.

Assets under management: A client with at least $1.1 million under the adviser's management at the time of the contract.

Knowledgeable Employees: Certain executive officers, directors, or employees of the investment adviser who are knowledgeable about the investment activities.

2. Disclosure Requirements:

The adviser must disclose the potential conflicts of interest that arise from charging a performance fee, such as the adviser's incentive to take higher risks. Any performance-based fee arrangement must be structured in a way that aligns the adviser’s interests with the client’s.

3. Performance Fee Structure:

Performance fees may only be calculated based on capital gains or capital appreciation, and they must be in addition to other management fees, unless the fee is explicitly structured differently.

These fees are typically structured as a percentage of the gains above a specific hurdle rate or benchmark.

4. Annual Adjustments:

The SEC periodically adjusts the net worth and assets under management thresholds for inflation, with the current thresholds being $2.2 million in net worth and $1.1 million in assets under management (as of 2021).

Purpose of Rule 205-3:

The rule exists to protect investors who may not have the sophistication or resources to fully understand the risks associated with performance-based fees. By restricting these types of arrangements to qualified clients, the SEC ensures that only wealthier and more experienced investors are exposed to such contracts, which could incentivize advisers to take excessive risks with client funds.

Contact your advisor if you would like more details on performance-based fees.  

 Clarification for Clients: By disclosing the possibility of a performance fee, clients (and prospective clients) are better informed about the potential costs associated with the advisory relationship. This disclosure helps clients understand the terms under which the adviser could earn additional compensation.