FREQUENTLY ASKED QUESTIONS

Why invest with PowerHouse Assets?

We professionally manage your money in an intelligent and cost effective way using the same approach used by top wealth managers. We want you to know how we invest and take the time to educate you on our approach. We also provide a supportive community to continue educating you and to keep you informed about what we are doing.

How do I know where my money is being held when I invest with PowerHouse Assets? Will I have online access to my account?

PowerHouse Assets uses Fidelity as the custodian of your assets. You will be able to log on to Fidelity.com at any time to see your account and Fidelity will also provide monthly statements reporting on your account.

What do you invest in? Why do you use DFA Funds? What about Vanguard funds?

We want to keep overall costs low and we will use exchange traded funds and other index funds to capture the returns of “the market” instead of picking individual stocks. Vanguard is well known for its low cost indexing products and is a great option for individual investors that want to do their own investing. We use Vanguard products when they are the best in their asset class.

However, we like the indexing funds offered by Dimensional Fund Advisors (DFA) better for many asset classes. They take indexing to another level by really taking advantage of the higher returns provided by small cap and value priced stocks. Dimensional Fund Advisors are also smart in how they manage their index funds. For example, they don’t buy a new stock on the day it gets added to the index when everyone else is required to buy it at a high price. They wait patiently for a more opportune time and get the same stock to add to the index at a more favorable price. DFA is advised by two Nobel Laureates whose work is the basis for much of the “smarts” in DFA funds.

To have access to DFA funds you must be an approved Investment Adviser (RIA) such as PowerHouse Assets. By limiting access only to approved RIA’s, turnover in the funds is kept very low and DFA can maintain low costs for all of their investors.

Can I invest my IRA with you? My roll-over 401K? My Roth IRA? My inherited taxable account?

Yes, we can manage all types of accounts. Please feel free to contact us about your specific situation and we can answer your questions and guide you through the process.

How do you protect my privacy?

Your privacy is very important to us. PowerHouse Assets will take all the necessary steps to respect and safeguard your privacy. Each year, as a client, you will receive a copy of our Privacy Policy. We review our Privacy Policy regularly and ensure that our PowerHouse Community Partners are well aware of their responsibilities to safeguard both our clients’ and prospective clients’ privacy.

How are you compensated?

We are an independent fee-only Investment Adviser firm. This means that you pay us directly based on assets under management. This is the only way we get paid. There are no commissions, no loads, no payments from anyone else besides you. This allows us to manage your money without any conflicts of interest. We have no incentive to sell you any products. And because we are independent, we can choose the best investments for you – we are not limited in our choices.

What does it mean to be a Fee-Only Registered Investment Adviser firm? How does a Fee-Only Investment Adviser firm differ from a brokerage firm?

PowerHouse Assets LLC is a Registered Investment Adviser registered with the Massachusetts Securities Division. The goal of registration is to ensure that individuals and firms dealing with investors in the Commonwealth of Massachusetts meet certain minimum standards of conduct, education, and financial solvency. This is a legal requirement for doing business and registration of an investment adviser does not imply any level of skill or training.

As a fee-only registered investment adviser, we have a higher level of fiduciary responsibility than a brokerage firm. We are required by law to work in our clients’ best interest, to walk in their shoes. You pay our fee directly, based on assets under management and that is the only way we are paid. In contrast, a brokerage firm sells and distributes financial products. A stockbroker is a salesperson working for the firm. By law, a broker needs to meet a suitability standard. Brokers can sell you a product that is suitable but it may not be in your best interest since it may not be the best or the cheapest option for you. A broker is usually paid a sales commission on products sold.

How do I talk to my husband/partner about PowerHouse Assets? My husband/partner manages all our investments, so why should I care?

Irrespective of who is handling the investing, we believe that it is in your best interest to be aware of the big picture – the goals, the custodian, the account numbers, passwords, the fees you are paying. You should be discussing your objectives and strategies together regularly so that you are both familiar and comfortable with what is happening. Remember, you both need to live with the results! PowerHouse Assets meetings are a good conversation topic.

I already have a financial adviser. He says he is taking care of everything and that I can trust him. What would you advise?

We would be happy to send you a list of questions to discuss with your financial adviser so that you can understand how your money is being handled and then you can decide for yourself if it is in your best interest. Ultimately, knowing more about how your money is working for you will help prevent unpleasant surprises in the future. For the list, email us at info@powerhouseassets.com.

How do I get started with PowerHouse Assets?

You can contact us at 800-830-6915 or e-mail us at info@powerhouseassets.com and we will be happy to introduce you to the PowerHouse way of investing.

powerhouseassets • 60 thoreau street, concord, massachusetts 01742 • 1-800-830-6915 • info@powerhouseassets.com