Assets are held at Charles Schwab. CWP will also manage assets held away (401(k), 403(b), annuities, etc.) directly at the custodian.

CWP is a 3rd Party Asset Management Company created to help Advisors succeed under a fee-based business structure. Our mission is to work with the Advisor to build their practice and grow all household assets along a risk-based model set according to the client’s risk profile.

1. CWP offers strategic insight and guidance to help the Advisor develop a plan to grow assets under management.
   
2. CWP has account management capabilities, technology, and established processes that Advisors would not be able to implement without substantial time and cost.
   
3. CWP offers to manage all household accounts including assets held away, which consist of 401(k), 403(b), profit sharing, and annuities. This will add more services for your clients and increase assets under management.
   
4. CWP offers full-service, active portfolio management at a low-cost relative to the industry.
   
5. CWP has a strong reputation with over 50 years of combined industry experience.

Turnkey Asset Management Program (TAMP) is a fee-based platform for asset managers, broker-dealers, CPA’s, and other financial professionals. TAMP’s can offer technology, back-office support, and tasks like investment research and trading.

A fiduciary is a person or legal entity, such as an Advisor or Brokerage firm, that has the power and responsibility of acting for another (usually called the beneficiary or principal) in situations requiring total trust, good faith, and honesty.

Fee-based advisors receive fees for their service, rather than basing their business on sales commissions. The model helps to limit or eliminate conflicts of interest. CWP uses the fee-based model as a means of aligning our interests with those of our clients.

Valuing your practice has several steps. The most important step is to identify “What Is Your Number?”

First, you need to find the recurring revenue that your AUM produces without your added input such as trails, 12b-1s, and fees. For example, if you have $40M in AUM, your recurring revenue might be $100,000.

Second, you will divide $100,000 by $40M in AUM, which is 0.0025 or 25bps. Consequently, “Your Number” is 25 bps.

Under these assumptions your practice could be worth 2 times recurring revenue or $200,000.

There are many ways to increase the value of your practice:
1. Change your practice to a fee-based business
2. Add more client services
3. Increase “Your Number” to 100bps

The more services you offer and deliver to your clients, the more valuable your business will become. Recurring revenue can be multiplied by a factor of 3 times earnings under a fee-based model. Using $40M in AUM as illustrated in the previous question, a fee-based model could produce recurring revenue of $400,000. Consequently, increasing the value of the business to approximately $1.2M.

50 Services to Offer Clients

Yes! By delivering extra services to your clients, they will become more loyal and turn into advocates for your business.

Yes! CWP creates two market commentary articles each month.

The first article is geared toward the advisor and is detailed with specific portfolio changes, drivers for the portfolio changes, current economics, and a forecast of the economy moving forward.

The second article is written for the client. This write-up highlights the economy, changes to the portfolio, and our forecast moving forward. The client write-up is layman so all clients can understand what CWP is doing for them.

Your clients will receive a position report and market commentary monthly, which is a minimum of 12 touches per year. During times of elevated market volatility your clients will receive bonus market commentary illustrating the reason for market movement. Clients will also be kept up to date on various changes made by CWP.

Portfolio modeling is a diversified system of securities that are grouped together to provide an expected return with a corresponding amount of risk.

CWP uses portfolio models for several reasons including:
1. Modeling allows CWP to manage large amounts of assets efficiently
2. Creates the ability to implement changes to the portfolio very quickly
3. We can apply our analytics very easily across all model sets

CWP has 6 models: 3 Income Models & 3 Growth Models. By having 6 models available, CWP can help the advisor guide the client into the most suitable model for their desired risk and objectives.

Working with CWP, an advisor can start managing Assets Held Away (AHA). AHA are defined as accounts not actively managed by an advisor or custodian affiliated with the advisor’s financial institution. Examples of AHA accounts are 401(k), 403(b), 457, Simple IRA, Annuities, and Life Insurance.

CWP has the account management capabilities to allow advisors to add these accounts to their platform. Based on our experience, assets held away can increase an advisor’s AUM by approximately 20%.

50 Services to Offer Clients