Broker Check


How long has FMA been in business?

FMA began business in April 1980 and was incorporated on October 28, 2002.

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What type of investment strategies do you offer?

We offer several types of investment strategies. New strategies are added as client needs develop. For further information, please contact Arnold T. Beck, Jr., President of Financial Management Associates, Inc., at 916-985-9559

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What are your fees for these investment strategies?

The fees are dependent upon the amount of assets that are allocated to each strategy, as well as the amount of assets that you are asking the advisors at FMA to manage. Generally, depending on the fee schedule, fees range under one percent for large amounts of funds up to 2 percent for some of the most aggressive strategies. However, to get a better idea of what your actual costs will be, it is best to discuss this in a meeting with Arnold T. Beck, Jr., President of Financial Management Associates, Inc.

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How does FMA select outside private money managers and model portfolios?

We look for portfolio managers with consistent, long-term, excellent track records in a particular investment style. The process used is designed to select the very best talent from a global network of institutional money managers who specialize in specific sectors of the market.

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Does FMA use separate account managers?

Yes. FMA works with some of the best investment management firms available. Separate account managers design and manage individual equity or fixed income portfolios in a tax-efficient manner to help meet specific goals of each client.

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How often is my account traded?

Typically, managed account portfolios are reviewed monthly and rebalanced when necessary. FMA utilizes a tactical approach to determine changes in the asset allocation developed for the clients' investment portfolio. Changes to any asset allocation are designed to retain your risk objective and portfolio volatility. Please be aware that rebalancing may result in tax consequences.

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How often will you review my account?

Generally, we review each account on a monthly basis. If circumstances warrant, such as market irregularities or a specific client need surfaces, we will review accounts immediately.

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If I am one of your investment management clients, how often will you meet with me?

During the first year for investment management clients, we will probably want to meet with you one or two times to explain and to review your first one or two quarterly asset management reports. After that we will generally give you the option to meet with us a minimum of every time that an asset management report is available to you. If you choose not to have a meeting or your schedule does not permit time to meet, you are welcome to schedule a conference call with us.

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How often will I be updated on my managed portfolio?

You will receive quarterly reports, which state beginning balances, the ending balance, and the percentage and dollar return during that time period. These returns are compared to various indexes, depending on the type of investment strategy. If securities are traded, you will receive a confirmation statement giving full details of each buy and sell.

You may also access your accounts through the client area of FMA's Client Center. The Client Center area provides information regarding various investments, stock and mutual fund quotes and account balances.

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Do you have discretion to trade my account?

No. We do not retain discretion to trade your account without your permission. It is extremely important that you are an intregal part of all trade decisions. We discuss the investment options available to you and potential consequences of making any trades.

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Do I have to stay with your service for any length of time?

Obviously, we would want you to stay with us forever. However, there is no obligation to do so. A client may terminate service with us at any time. Of course, we will require payment of any fee owed through the date of termination. A few exceptions arise with illiquid type of investments, such as hedge funds, venture capital or limited partnerships. In these cases there is very little liquidity.

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What will you provide me at year-end to prepare my taxes?

Typically, each managed portfolio and separate account manager will provide you with a Form 1099 at the end of the year. The same is true for mutual fund distributions. These companies generally provide the form 1099 on January 31st of each year.

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How often will you meet with me for your financial planning services?

For financial planning services during the first year, we generally would like to meet with you four or more times. The reason we do this is because during this first year, there is a great deal of work and information to collect, and discussion that needs to be done on various issues. In order to provide you with the best advice possible, we must have a thorough understanding of your financial situation. The second year, we typically meet a minimum once or twice a year. After that, whenever possible, we try to discuss specific changes over the telephone versus a meeting so that we can quickly respond to your needs. During these time periods, we will review your financial situation and, if necessary, provide you with an updated balance sheet, tax projections, and other financial issues that need to be addressed.

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How do you charge for your financial planning services?

The financial planning fee that we charge is for a year's service. The first year's fee is based on the complexity of your situation. The second year's fee, depending on the assets under management is reduced significantly. The second year's financial planning fee, typically, is 50% of the first year's fee, assuming certain minimums. Please note that financial planning fees are separate from the investment management fees. Please note, if you place a minimum of $2,000,000 under management with FMA we do not charge financial planning fees in the second year and thereafter.

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Will you provide me with a fee estimate and a written proposal for your financial planning services?

Yes. After meeting with us, you will receive a proposal letter that outlines what we will be doing for you with a calculation for the first year's fee.

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If I sign up for FMA's financial planning services what will occur?

The financial planing process involves extensive information and data gathering. Our initial request is for you to complete one or more of our comprehensive questionnaires as well as provide us with all of your financial information and documents. If necessary, we will send questionnaires to insurance companies for all your insurance policies and annuities. We will prepare authorization letters from you to each of your professional advisors prior to contacting them. Once we have all this information we will begin preparing your financial documents. These include a balance sheet, an income tax projection and other documents as needed. We will then meet with you to verify that we have all the relevant information. After this meeting, we will prepare other projections such as retirement calculations, college funding, estate tax issues, IRA, 403b, 401K and 457 qualified and non qualified distribution analysis and, if necessary a survivor needs analysis. Next we will begin reviewing your overall situation as well as what issues that you need addressed in these areas. For example we will discuss with you refinancing your home mortgage, commercial loan needs or other debt, and other issues you may have. We will spend time discussing how to reduce or defer tax consequences, funding your children's or grandchildren's education in a tax efficient manner. We will review your estate planning documents to ensure your wishes will be implemented, as well as suggest alternatives to plan your estate.

In addition to the information and data questionnaires, a separate estate and personal legacy questionnaire will be given to you to complete. We will analyze your insurance to determine if you have adequate personal and business coverage. We will also discuss with you an overall investment strategy to meet your goals. If you are retired or near retirement, we will thoroughly discuss these issues as well as distribution strategies from qualified retirement plans and non-qualified tax deferred plans.

Once we provide you with your financial and legacy recommendations, we will assist you with implementing them. In the implementation process, the value-added services that FMA provides, that most firms do not, is that we will meet with your professional advisors to ensure that everyone is working on your behalf to implement your financial and legacy goals.

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How do advisors at FMA differentiate themselves from other financial advisory or brokerage firms?

Advisors at FMA provides advice on a client's finances while at the same time, assisting them with implementing their recommendations. FMA's client services are designed to be unparalleled. FMA strives to analyze a client's financial and estate planning and personal legacy as completely as possible. At FMA, we bring together the client's financial situation to assist our clients achieve their goals. We do this with unequalled service. Interaction with the client's other professional advisors, such as accountants, attorneys, bankers, and insurance agents, is encouraged to ensure everyone are working on the client's behalf.

Many financial advisory firms offer one investment service, such as asset allocation with mutual funds. Some of these advisory firms receive commissions in addition to fees. FMA offers a number of investment strategies in addition to asset allocation. Brokerage firms offer some of the same investment offerings as FMA. However, the investment trading costs can be very expensive and, in some cases, are done without an understanding of their client's overall goals and objectives.

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