What’s the difference between Active Management and Passive Management?
Active management has a live person monitoring the underlying investments whereas passive is tied to an index or some other investment and just has a computer manipulate the investment choices. Because of this, active management has a higher fund-level fee (typically around 0.60%) to pay for the fund manager, and passive management has a lower fund-level fee (typically around (0.10%) to just pay for the computer and software. One theory is that an active manager should be worth their fee in the returns they are able to seek; and the other theory is the market is so efficient that a live person cannot beat it, so there’s no point in paying the higher fee. There are pros and cons to each type of management, so this is more of a personal preference than a mathematical question.
What does the Return percentage and Risk percentage mean?
These are calculated from historical data for you to have an idea of the ranges of return your projected portfolio should see. Using a standard bell curve in statistics, if your return is 4% and risk is 7%, than your account should return somewhere between –3% and 11%, calculated as return – risk and return + risk.
What should I do if I don’t know which account type I should open?
Call or email us! This is very important because there may be adverse tax consequences to which account type you open. We are more than happy to double check to make sure you are selecting the correct account type.
What information will I need to open an account?
Depending on the type of account, you will need all of your personal information (ssn, address, employer, net worth, income, etc.) and maybe your spouse’s information. You also will need to designate at least one beneficiary to the account, so you will need their name, address, date of birth, and social security number.
What is a trusted contact?
“A ‘trusted contact person’ is a person that you authorize your brokerage firm to contact in limited circumstances, such as if your broker has trouble reaching you or has a reasonable belief that your account may be exposed to possible financial exploitation. A trusted contact person must be age 18 or older.” - finra.org
What does “Per Stirpes” mean for a beneficiary?
If selected, this would mean that should your beneficiary die before you do, the portion of the account that you have designated to that beneficiary would go to their next of kin, or next person in line on the family tree.
Should I add my banking information right away on the account application?
Yes! It’s a good practice to fund an account right away when you open it. It also makes it easier to transfer money later or set up recurring transfers.
Can I save my application and come back to it later?
Unfortunately, no, if you leave the application process you will need to start over.
How do I log back into my account/profile?
You can go to www.jhpierce.com and under “Account Access” click “Login.” This will be how you will access your online account to view your investments and account balances.
I’ve opened my account and have money in it, but how do I transfer more money into this account or withdrawal from it?
On the bottom right-hand corner click on “Transfers” then at the top of the page click “Request Cash Transfer” and follow the prompts to transfer money in or withdrawal from the account.
Active management has a live person monitoring the underlying investments whereas passive is tied to an index or some other investment and just has a computer manipulate the investment choices. Because of this, active management has a higher fund-level fee (typically around 0.60%) to pay for the fund manager, and passive management has a lower fund-level fee (typically around (0.10%) to just pay for the computer and software. One theory is that an active manager should be worth their fee in the returns they are able to seek; and the other theory is the market is so efficient that a live person cannot beat it, so there’s no point in paying the higher fee. There are pros and cons to each type of management, so this is more of a personal preference than a mathematical question.
What does the Return percentage and Risk percentage mean?
These are calculated from historical data for you to have an idea of the ranges of return your projected portfolio should see. Using a standard bell curve in statistics, if your return is 4% and risk is 7%, than your account should return somewhere between –3% and 11%, calculated as return – risk and return + risk.
What should I do if I don’t know which account type I should open?
Call or email us! This is very important because there may be adverse tax consequences to which account type you open. We are more than happy to double check to make sure you are selecting the correct account type.
What information will I need to open an account?
Depending on the type of account, you will need all of your personal information (ssn, address, employer, net worth, income, etc.) and maybe your spouse’s information. You also will need to designate at least one beneficiary to the account, so you will need their name, address, date of birth, and social security number.
What is a trusted contact?
“A ‘trusted contact person’ is a person that you authorize your brokerage firm to contact in limited circumstances, such as if your broker has trouble reaching you or has a reasonable belief that your account may be exposed to possible financial exploitation. A trusted contact person must be age 18 or older.” - finra.org
What does “Per Stirpes” mean for a beneficiary?
If selected, this would mean that should your beneficiary die before you do, the portion of the account that you have designated to that beneficiary would go to their next of kin, or next person in line on the family tree.
Should I add my banking information right away on the account application?
Yes! It’s a good practice to fund an account right away when you open it. It also makes it easier to transfer money later or set up recurring transfers.
Can I save my application and come back to it later?
Unfortunately, no, if you leave the application process you will need to start over.
How do I log back into my account/profile?
You can go to www.jhpierce.com and under “Account Access” click “Login.” This will be how you will access your online account to view your investments and account balances.
I’ve opened my account and have money in it, but how do I transfer more money into this account or withdrawal from it?
On the bottom right-hand corner click on “Transfers” then at the top of the page click “Request Cash Transfer” and follow the prompts to transfer money in or withdrawal from the account.
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