Investment accounts are generally held at Charles Schwab1, and clients are able to view their accounts online through the Charles Schwab portal. We will work with Schwab to ensure your account transfers from other financial firms are as seamless as possible. Assets can often be transferred over into your Schwab account in kind.
A One Day In July financial advisor invests your money in low-cost index funds, provided we do not have other constraints. An index fund is a financial instrument that provides exceptional diversity at low cost. It is traded like a stock, except when you buy a stock you purchase shares in one company. When you buy an index fund, you buy all the companies in the index it tracks, all at once, in one simple transaction.
Our fees are extremely low. We offer clients a service at a low cost, and we believe the quality is excellent. As John Bogle once said, “In investing, you get what you don’t pay for.” We are a low-fee financial advisor; we encourage you to compare our financial advisor fees with others. We believe fees should be transparent and simple.
Unlike most mutual funds, an index fund does not have a fund manager making active decisions about what to buy and sell each day. The job of the people running the index fund is to closely track its underlying "basket" of securities - that is all. For example, all of the large companies in America, or all of the publicly-traded real estate investment trusts. Because of this, it is called a "passive" investment. Most mutual funds are considered "active" investments because fund managers are deciding what securities to buy and sell.
Asset allocation is an investment strategy aimed at balancing risk and reward by carefully assessing a client’s goals, risk tolerance, and investment horizon. At One Day In July, decades of work by our Founder have led to investment models that are diversified and prepared for different market environments. Each portion of the portfolio serves a specific function for you and your financial advisor will help you understand each one.
Your One Day In July financial advisor will rebalance your portfolio on a schedule that makes sense with your asset level and our internal models. Nobel Prize-winning American economist Harry Markowitz called diversification “The only free lunch in finance.” Worth noting.
Our financial advisors are always fiduciaries – on all of our client accounts. We represent only the interests of our clients, and no one pays us other than our clients. We are legally bound to be fiduciary financial advisors. Even if we were not legally bound, we would act in this manner, as we believe this is the ethical thing to do. This is how we would want you to treat us if our positions were reversed.
We are independent financial advisors in our decision making, and we do not cross-sell other financial products.
1We also manage accounts that are not held at Charles Schwab. Refer to our ADV 2A Item 4.B. for information on "Held-Away" Accounts.
Shelburne, VT 05482
Burlington, VT 05401