Are you Independent?
BD Wealth Management is independent of any company or organisation and acts solely on behalf our clients in recommending, facilitating, instigating and sourcing products and services
Why is independence important?
Our independence allows us to be unbiased in our recommendations. Advisors that are tied to one or more organisation are legally bound only to recommend from their own product range. Whilst we have access to these product ranges, we can also look and compare outside of these ranges.
How much do I have to pay?
Talking to us is free! Whenever a fee does arise, this is paid for by the financial institutions. These fees are already incorporated within the standard charging structure of the product and therefore whether you talk to us once or one hundred times, it is all taken care of. Occasionally fees may be charged for other non-institutional services to investors who prefer not be become clients of BD Wealth Management. These fees will always be disclosed before any such situation is likely to arise.
Do you replace my accountant?
No. If you already have a relationship with an accountant that you are pleased with, we will proactively work alongside your accountant. If you are looking to establish a new relationship, we will be happy to introduce you to an accountant who specializes in situations similar to yours.
Do you replace my lawyer?
No. Much like the situation with your accountant, we welcome your existing relationships with your legal advisors, or, should you choose, we can introduce you to someone appropriate for your particular needs.
Where are my assets held?
BD Wealth Management does not hold your assets. Your assets are held by an independent third-party custodian who helps provide an extra level of checks and balances. You will usually have 24/7 online access to your accounts and additionally will receive regular statements from both us and directly from that third-party custodian.
Who makes my investment decisions?
You do. We undertake regular reviews and offer regular recommendations that provide you with enough information to make wise choices, but ultimately you have the final say in every investment decision. We do not believe investment decisions should be a surprise, so whilst we can complete all the paperwork for you, we will not act without your authorisation.
How often will you contact me and how?
We appreciate that each of our clients is unique and each person has a preferred method of contact. During our initial meeting, we work with you to determine how you prefer to be contacted and how often. We strive to be consistent and meaningful in our client communications. We understand that some of our clients prefer shorter meetings more regularly whereas others prefer longer review meetings once a year, or a combination of the two. We accommodate your preferences whilst always remaining available by Skype, telephone or email.
What investor protection can you offer?
BD Wealth Management always completes due diligence on any institution that we recommend. Further BD Wealth Management will never receive your premium payment. All payments are made directly from you to the licensed financial institutions that have to comply with the regulators requirements for financial liquidity and separation of client money.
What Risks do you consider?
While all investments are risky some are safer than others. Usually the more the risk the more the return.
There are different types of Investment Risks that a BD Wealth Management advisor considers when making a recommendation to you.
A. First and foremost - You! The appetite for risk is different for each individual. Some are very cautious, while others prefer to be adventurous.
B. Interest rate risk is the possibility that a fixed-rate debt instrument will decline in value as a result of a rise in interest rates
C. Business risk is the measure of risk associated with a particular security. It is also known as unsystematic risk and refers to the risk associated with a specific issuer of a security.
D. Credit Risk refers to the possibility that a particular bond issuer will not be able to make expected interest rate payments and/or principal repayment. Typically, the higher the credit risk, the higher the interest rate on the bond.
E. Taxability Risk refers to the risk that a security that was issued with tax-exempt status could potentially lose that status prior to maturity.
F. Inflationary Risk also known as purchasing power risk, inflationary risk is the chance that the value of an asset or income will be eroded as inflation shrinks the value of a country's currency.
G. Liquidity risk refers to the possibility that an investor may not be able to buy or sell an investment as and when desired or in sufficient quantities because opportunities are limited.
H. Market risk, also called systematic risk, is a risk that will affect all securities in the same manner.
I. Reinvestment Risk - In a declining interest rate environment, bondholders who have bonds coming due or being called face the difficult task of investing the proceeds in bond issues with equal or greater interest rates than the redeemed bonds
J. Social/Political / legislative Risk is risk associated with the possibility of nationalisation, unfavorable government action or social changes resulting in a loss of value
K. Currency/Exchange Rate Risk is a form of risk that arises from the change in price of one currency against another.