FAQ

Who are Orchard’s clients? Do you only serve individuals and families?
Orchard provides investment strategies to affluent and wealthy individuals as well as family trusts, business entities, and non-profit organizations. Our private client group consists predominantly of individuals ranging in age from 50 to 90 years old—though you are never too young to secure your financial future. While our clients are mostly pre-retirees and retirees, we also service numerous trusts—family and otherwise. Our clients, like you, tend to have similar concerns and reasons they turn to us to take care of their financial needs: they want professional guidance on their assets without the typical conflicts of interest; they dislike the ongoing sales pitches they get from strictly commission-based advisors; they prefer to keep it personal and not become just a number, as it often happens at larger firms; and they don’t have the interest, discipline or even the time to manage their own assets—and they may not have the financial knowledge to manage them in the most effective manner.

What is the minimum investment?
We typically work with qualified investors having a $500,000 minimum (to start) of liquid investable assets and an investment net worth of over $1,000,000, excluding your house. Occasionally we do make exceptions to these new client minimums.

If we were to engage in an advisory relationship, how much contact should I expect to have with Orchard and how often would you review my account?
We recommend a minimum of quarterly reviews and at least one face-to-face meeting with each of our clients. We can have as little or as much contact as you desire because, at the end of the day, you are in charge of our relationship. Your account, however, is monitored by us on a regular basis. We continuously review changes in market, industry, sector, and asset class conditions. If we find it appropriate to make a tactical change we will contact you and get your approval before repositioning and/or implementing a corrective risk management strategy. 

Does Orchard consult its clients when making trades?
Yes, yes and yes—starting on day one! Our practice is to consult with you regarding the portfolio’s construction prior to any initial investments being purchased. We will discuss our different investment strategies, and what you can expect from those strategies. Once a strategy is decided upon, trades will be sent to implement the portfolio strategy. Orchard will manage the accounts/investments on an ongoing basis. This investment strategy will be discussed with you throughout the year—an ongoing dialogue. We will consult with you regarding all allocation or reallocation suggestions and wait for your concurrence before making any changes. This is, after all, your orchard—we are merely its caretaker.

I have a brokerage account(s) elsewhere. Will it be difficult to transfer these accounts to you for management?
After establishing a full and complete understanding of your present situation and future objectives, we will open a brokerage account on your behalf. The remainder of the process is actually quite simple and takes about a week to complete. We prepare a form for your signature that says you wish to transfer the assets over to our management. We then submit that form, plus a recent copy of an account statement, and the back offices of Interactive Brokers, LLC will complete the process.

Does a client have to stay with Orchard for any specific length of time—am I locked in? Are there any termination penalties?
We would like every client to stay with us forever; however, there is absolutely no obligation to do so. Our contracts clearly disclose that clients may terminate our services at any time. Additionally, there are no termination fees, no hidden charges, and no forced liquidations. The only exception to your ability to liquidate your investments would be in the rare event that an illiquid type of investment is owned, such as private placement real estate (i.e., a Real Estate Investment Trust). Naturally, we will require payment of any fees owed through the date of termination.

Can I review my account online?
Yes, through the Orchard website we provide private online access to your accounts through the client portal, where you can see monthly statements, trade confirmations, annual performance, and more—all of which can also be sent by mail. 

How do I add money to, and take money out of, my account when I need it?
Money can move in or out of your account in a number of ways. Because this is a brokerage account, not a bank account, it requires you to establish an online ACH link. You can always mail a check directly to the custodian, Interactive Brokers, LLC. You can also wire money in or out of your account. We can help you set up a feature to make regular electronic deposits or withdrawals. If you make a large withdrawal, we kindly request advance notice so we can be certain cash is available. Remember, Orchard never handles your money directly. This step is yet another safeguard put in place to protect your assets.

Is my money safe at Interactive Brokers, LLC?
Interactive Brokers, LLC, the third-party custodian of Orchard Wealth and Legacy Management, LLC, is a member of the Securities Investor Protection Corporation (SIPC). The assets any of our clients have with them are insured by the SIPC for up to $500,000 for each separate account, including up to $100,000 in cash. It also includes up to an aggregate of $250 million in additional securities protection, of which $900,000 may be applied to cash, which is provided by London Insurers, also limited to a combined return to any client from a Trustee, SIPC and London Insurers of $150 million. This coverage provides you with protection against brokerage insolvency. The SIPC does not protect your investment principal from market volatility; however, it does provide protection in the event the custodian of record goes out of business. For more information, please visit sipc.org.

Does Orchard offer accounting and legal services?
The short answer is no. The longer answer is that Orchard feels it is in the best interest of its clients to not muddy the waters by having these services under the same roof. Although these are important components to your financial future, we never want there to be a perceived conflict of interest in any of the recommendations we make. It is for this reason that we work with your existing professional relationships (tax or otherwise) and can offer you a referral in these area(s) when needed.

How are income taxes factored into portfolio management?
We are very sensitive to the erosion of portfolio returns caused by income taxes. For individuals, we are vigilant in selecting portfolio investments, which are tax-sensitive, and then manage each client's portfolio in a tax-sensitive way. With the prime objective of preserving capital, at times we will advise selling a security to take the capital gain (or loss) more for investment efficacy than tax planning. Institutional clients such as pensions, foundations, endowments, and IRAs are tax-free (or tax-deferred) entities. As such, we manage for the best gross return possible, unconstrained by current income tax considerations.

As part of your advisory role, I’d like to seek your counsel on how to more effectively mitigate my taxes. Can Orchard help me with this?
We regularly work with clients' tax professionals to accomplish this by customizing your investment holdings specifically for your unique needs. It is not just what you make but what you (and your eventual heirs) get to keep that is your true rate of return. Tax mitigation means that, in collaboration with your tax professional, we find ways to ensure that both you and your eventual heirs are not writing gigantic checks to the IRS each year.

Where are you licensed?
We are registered as a Registered Investment Advisor (RIA) in Puerto Rico. 

What does SIPC stand for, and what is it?
The goal of the Securities Investor Protection Corporation is to restore funds to investors with assets in accounts at bankrupt or financially troubled brokerage firms. When a brokerage firm is closed due to bankruptcy or other financial difficulties, and customer assets are missing, SIPC steps in quickly and works to return customers’ cash, stock, and other securities.

Now that I’m comfortable with Orchard’s philosophy, process, and qualifications, how do I get started? 
The first step is an initial inquiry from you, which can either be by phone at 609.937.8064 or via email at jason@orchardwlm.com. We offer an initial free, no-obligation meeting based on availability, Monday through Friday between the hours of 8AM-6PM.

Do you have additional questions that we did not answer? Please call or email Orchard Wealth & Legacy Management, today!