Alternatively, we may recommend and you may choose advisory services that focus on a specific area
such as college funding, portfolio second opinions, or evaluating the quality and sufficiency of a
retirement plan. For example, some specific projects for which a client might engage us include:
• College funding - While a comprehensive plan includes recommendations as to how to save for
college and whether your family is likely to be eligible for college financial aid, we may also take
an in-depth look at how to maximize eligibility for aid, or business and tax strategies designed to
reduce out-of-pocket costs and improve cash flow to pay for college. This planning may include
an estimation of the level of aid or merit awards the child is likely to secure, direction and
guidance on filling out aid applications and advice on managing the application process.
Depending on the complexity of your financial picture, whether you are a candidate for aid, the
nearness of the college application process, and whether you need guidance with filling out
applications, this in-depth service can take two and a half (2.5) hours to six (6) hours as a standalone
report and analysis.
• Portfolio second opinion - You may have accumulated a variety of investments over a period of
time, but either do not understand the purpose of a specific investment, may no longer be
confident that the investment or allocation is correct for your financial situation, may be seeking a
different level of risk or return, or may be looking to simplify the management of your portfolio. We
may review your current investments with regard to appropriate asset allocation (mix between
equities, fixed income, and alternative investments), asset location (taxable vs. tax advantaged),
and quality. Depending on the complexity of the portfolio, this service will take approximately
three (3) to six (6) hours.
• Retirement planning and review - We may provide: A projection of retirement income based on
current investments; suggest adjustments to your current portfolio to improve the return on
investment; reduce risk to appropriate levels; and aim for tax efficiencies. We may help you map
out a future savings strategy or withdrawal plan, as appropriate. We may run a Monte Carlo
simulation, which is designed to run hundreds of simulations to illustrate worst case/best case
results of the retirement plan. This plan will take approximately three (3) to six (6) hours.
• Small Business Retirement Plans - We may assists small business owners and professionals in
establishing employer or employee retirement plans. Specific tasks include: Screening for the
appropriate type of plan; evaluating administrators; identifying and comparing all costs;
developing criteria for and menus of investment choices; establishing and implementing the plan;
and providing employee education. This plan will take approximately three (3) to six (6) hours.
• Insurance and employee benefits review - We may evaluate the proper types of insurance in
place for both coverage and tax efficiency. Should you seek additional private coverage beyond
what is provided by the employer? If you have a 401(k) plan available at work, we may also help
you sort through the options for investment, suggesting appropriate selections and allocations.
This plan will take approximately two (2) to five (5) hours.
• Debt management and spending plans - We may give you assistance in developing a reasonable
spending plan and roadmap for paying off debt. While we do not negotiate with creditors, we can
assist you in developing a strategy to achieve sound future financial management. We may also
be able project the length of time it will take until you achieve your goals. This plan will take
approximately two (2) to five (5) hours.
Disclosure Brochure – Page 10
• Charitable Giving - We may assist you in assessing and determining the size and type of
charitable gift to set up; a charitable remainder annuity trust (CRAT); a charitable remainder
unitrust (CRUT); a pooled income fund; a charitable lead trust; long-term and/or short-term
charitable giving strategies. We may review, as appropriate, estate tax; asset protection plans;
generational giving; and the dynamics of leaving a monetary legacy as well as a value-based
legacy to heirs and the people and organizations you care about. This plan will take
approximately two (2) to five (5) hours.
• Annual review - We urge clients to notify us of any change in their circumstances, and to
schedule an annual review. An annual review should be considered even if there is not a
substantial change, because tax laws, estate laws, and insurance and investment products are
rapidly evolving. A review or update of a financial plan takes approximately one (1) to three (3)
hours. We recommend periodic reviews of any financial plan to adjust recommendations and for
validation of your current financial situation. It is the client’s responsibility to schedule these follow
up meeting.
During the execution of an agreed upon scope of work additional factors may be discovered that could
add to or take away from the original work agreed upon to be completed. This will be reason to generate
a newly revised quote for the total job. A summary of the revised work scope and reasons for addressing
or not addressing the work will be presented to the client for approval before the modified work scope is
executed. YFE will always use its best judgment and good faith efforts in rendering investment advice for
our clients.
YFE also charges a $250 fixed fee for initial consultations and planning consultations of an immediate
nature or any major life event, such as, death, divorce, accident, serious illness, etc. Fixed fee
consultations may be scheduled for one (1) to two (2) hours or more per consultation. This fixed fee may
be waived at our discretion and YFE reserves the right to be the sole determinant of what qualifies for a
fixed fee consultation, as well as, the amount of time scheduled over one hour. At all times, clients may
engage YFE on an hourly as needed basis for any issues or concerns.
Selection Of Other Investment Advisers
YFE has reasonable belief that most clients would benefit from professional money management. Based
on consultations with you, we may recommend the benefits of professional money management advisory
services. If you accept our recommendation for professional money management, we may select and
monitor money managers registered in the State of Illinois on your behalf. When we do so, the money
managers pay us a portion of the fees generated by the referred clients. Through these arrangements, we
are paid a referral fee by money managers based upon a percentage of Assets Under Management
(AUM), or in other words, "the amount of money being managed by the money manager." You are under
no obligation to follow the recommendations of YFE. The referral of clients to third-party money managers
does not increase the amount of advisory fees paid by you to the money manager. In other words,
advisory fees paid by you to third-party money managers are not increased as a result of fees paid to
YFE for the referral.
A major benefit that YFE offers clients is access to institutional money managers. The selection of
institutional money managers is our core business. As such, YFE actively seeks out prospective clients
that may benefit from the services of institutional money managers through the Eqis Capital Wrap Fee
Program sponsored by Eqis Capital Management, Inc., an SEC registered investment adviser.
Throughout this brochure, Eqis Capital Management, Inc. (Eqis), affiliated Model Portfolio Managers, and
non-affiliated Model Portfolio Managers are commonly referred to as “third-party money managers."
Alternatively, we may recommend and you may choose advisory services that focus on a specific area
such as college funding, portfolio second opinions, or evaluating the quality and sufficiency of a
retirement plan. For example, some specific projects for which a client might engage us include:
• College funding - While a comprehensive plan includes recommendations as to how to save for
college and whether your family is likely to be eligible for college financial aid, we may also take
an in-depth look at how to maximize eligibility for aid, or business and tax strategies designed to
reduce out-of-pocket costs and improve cash flow to pay for college. This planning may include
an estimation of the level of aid or merit awards the child is likely to secure, direction and
guidance on filling out aid applications and advice on managing the application process.
Depending on the complexity of your financial picture, whether you are a candidate for aid, the
nearness of the college application process, and whether you need guidance with filling out
applications, this in-depth service can take two and a half (2.5) hours to six (6) hours as a standalone
• Portfolio second opinion - You may have accumulated a variety of investments over a period of
time, but either do not understand the purpose of a specific investment, may no longer be
confident that the investment or allocation is correct for your financial situation, may be seeking a
different level of risk or return, or may be looking to simplify the management of your portfolio. We
may review your current investments with regard to appropriate asset allocation (mix between
equities, fixed income, and alternative investments), asset location (taxable vs. tax advantaged),
and quality. Depending on the complexity of the portfolio, this service will take approximately
three (3) to six (6) hours.
• Retirement planning and review - We may provide: A projection of retirement income based on
current investments; suggest adjustments to your current portfolio to improve the return on
investment; reduce risk to appropriate levels; and aim for tax efficiencies. We may help you map
out a future savings strategy or withdrawal plan, as appropriate. We may run a Monte Carlo
simulation, which is designed to run hundreds of simulations to illustrate worst case/best case
results of the retirement plan. This plan will take approximately three (3) to six (6) hours.
• Small Business Retirement Plans - We may assists small business owners and professionals in
establishing employer or employee retirement plans. Specific tasks include: Screening for the
appropriate type of plan; evaluating administrators; identifying and comparing all costs;
developing criteria for and menus of investment choices; establishing and implementing the plan;
and providing employee education. This plan will take approximately three (3) to six (6) hours.
• Insurance and employee benefits review - We may evaluate the proper types of insurance in
place for both coverage and tax efficiency. Should you seek additional private coverage beyond
what is provided by the employer? If you have a 401(k) plan available at work, we may also help
you sort through the options for investment, suggesting appropriate selections and allocations.
This plan will take approximately two (2) to five (5) hours.
• Debt management and spending plans - We may give you assistance in developing a reasonable
spending plan and roadmap for paying off debt. While we do not negotiate with creditors, we can
assist you in developing a strategy to achieve sound future financial management. We may also
be able project the length of time it will take until you achieve your goals. This plan will take
approximately two (2) to five (5) hours.
Disclosure Brochure – Page 10
• Charitable Giving - We may assist you in assessing and determining the size and type of
charitable gift to set up; a charitable remainder annuity trust (CRAT); a charitable remainder
unitrust (CRUT); a pooled income fund; a charitable lead trust; long-term and/or short-term
charitable giving strategies. We may review, as appropriate, estate tax; asset protection plans;
generational giving; and the dynamics of leaving a monetary legacy as well as a value-based
legacy to heirs and the people and organizations you care about. This plan will take
approximately two (2) to five (5) hours.
• Annual review - We urge clients to notify us of any change in their circumstances, and to
schedule an annual review. An annual review should be considered even if there is not a
substantial change, because tax laws, estate laws, and insurance and investment products are
rapidly evolving. A review or update of a financial plan takes approximately one (1) to three (3)
hours. We recommend periodic reviews of any financial plan to adjust recommendations and for
validation of your current financial situation. It is the client’s responsibility to schedule these follow
During the execution of an agreed upon scope of work additional factors may be discovered that could
add to or take away from the original work agreed upon to be completed. This will be reason to generate
a newly revised quote for the total job. A summary of the revised work scope and reasons for addressing
or not addressing the work will be presented to the client for approval before the modified work scope is
executed. YFE will always use its best judgment and good faith efforts in rendering investment advice for
YFE also charges a $250 fixed fee for initial consultations and planning consultations of an immediate
nature or any major life event, such as, death, divorce, accident, serious illness, etc. Fixed fee
consultations may be scheduled for one (1) to two (2) hours or more per consultation. This fixed fee may
be waived at our discretion and YFE reserves the right to be the sole determinant of what qualifies for a
fixed fee consultation, as well as, the amount of time scheduled over one hour. At all times, clients may
engage YFE on an hourly as needed basis for any issues or concerns.
Selection Of Other Investment Advisers
YFE has reasonable belief that most clients would benefit from professional money management. Based
on consultations with you, we may recommend the benefits of professional money management advisory
services. If you accept our recommendation for professional money management, we may select and
monitor money managers registered in the State of Illinois on your behalf. When we do so, the money
managers pay us a portion of the fees generated by the referred clients. Through these arrangements, we
are paid a referral fee by money managers based upon a percentage of Assets Under Management
(AUM), or in other words, "the amount of money being managed by the money manager." You are under
no obligation to follow the recommendations of YFE. The referral of clients to third-party money managers
does not increase the amount of advisory fees paid by you to the money manager. In other words,
advisory fees paid by you to third-party money managers are not increased as a result of fees paid to
A major benefit that YFE offers clients is access to institutional money managers. The selection of
institutional money managers is our core business. As such, YFE actively seeks out prospective clients
that may benefit from the services of institutional money managers through the Eqis Capital Wrap Fee
Program sponsored by Eqis Capital Management, Inc., an SEC registered investment adviser.
Throughout this brochure, Eqis Capital Management, Inc. (Eqis), affiliated Model Portfolio Managers, and
non-affiliated Model Portfolio Managers are commonly referred to as “third-party money managers."
Selection of Other Investment Advisers
A major benefit that YFE™ offers clients is access to institutional money managers and the tools they use like separately managed accounts (SMAs). SMAs provide many benefits of mutual funds but with additional advantages. Both mutual funds and SMAs provide diversification and professional management, but SMAs offer individualized customization, increased transparency, and greater tax efficiency. Our clients can own all of their equities directly and this allows clients to view each equity they own 24/7. A mutual fund only reveals its investments each quarter, so you rarely know what companies are currently in the fund. With our SMA program, you know exactly what you own on a daily basis and exactly how much is being charged for investment management.
If you wouldn't leave your wallet with a few dollars in it on the table in a crowded public place and think it will still be there the next day, why would you leave your life savings with some of the biggest names in the financial industry that have already proved that they can't be trusted?
Please realize that until recently due to recent advances in technology most investors could not benefit from global diversification and professional management without using mutual funds. But wealthy investors with larger accounts have chosen to use fully diversified, separately managed accounts for many years. Finally, most investors are able to receive the attention, customization, diversification, tax efficiency, and direct ownership of equities that they deserve.
While investing through separately managed accounts, a trusted advisor is critical to your success, especially in the following three areas.
Asset allocation selection: The first step in engineering a custom investment solution is to determine the proper asset allocation – proportion of asset classes and equity styles that will combine to create the greatest advantage for the client. Engineering the proper asset allocation requires a keen understanding of an individual's goals and priorities combined with an expertise in finance, especially modern portfolio theory.
Manager selection: The asset allocation will typically combine fixed income, domestic equity styles, and equities from several international regions. The advisor provides the expertise necessary to select the proper combination of managers for each of these distinct investment categories. Track record and investment philosophy are the main criteria in this due diligence process.
Confidence: Long-term investing requires confidence in one's plan, for only with confidence can one stay the course to prosperity. Your financial professional inspires confidence, because he or she understands your goals, knows how to accomplish your goals, and makes certain that your portfolio is maintained to maximize the probability of your success.
The analogy below should prove useful...
Your YFE™ adviser learns your goals, designs an asset allocation, and selects the managers. These roles are tantamount to the combined expertise of an architect and general contractor when building a house. The architect must learn about you to know what style and floor plan would make you happiest. Your adviser will do the same when designing your asset allocation. The general contractor must find the best specialist to perform each of the jobs involved in constructing a home; such as, masonry, carpentry, roofing, plumbing, HVAC, tiling, flooring, wiring, drywalling, cabinetry, painting, and landscaping. Similarly, you advisor must find the best money manager for each specialty: large cap growth, large cap value, mid cap growth, mid cap value, small cap growth, small cap value, Asia, Europe Latin America, fixed income, and alternative investments. The general contractor must monitor the experts he or she has hired to make certain that they perform their roles properly. Your adviser monitors the individual managers with whom individual investment decisions are trusted.
A trusted adviser is just as critical to a solid financial future as an inspired architect and reliable general contractor are to a beautiful, reliable home. We are dedicated to providing excellent investment solutions exclusively through YFE™ advisers, precisely because of the value our advisers are trained to provide for their clients.
Shouldn't you demand that your life savings be managed responsibly by the most insightful, knowlegeable, and attentive experts available. We and our elite affiliated advisers instill confidence by implementing the most scientifically established methods available via state-of-the-art technology. Our clients enjoy the benefits of separately managed accounts (SMAs) that were previously reserved only for the wealthy.
Your choice is clear. Shouldn't you upgrade to YFE™ today?
Welcome to a better investment solution!
