Financial Planning
VanderPol Investments provides financial planning for all our clients. Creating a financial plan provides insights into how much to save(spend), where opportunities may lurk for better tax efficiency, and what to expect for years to come. All first time clients are encouraged to do an in depth financial plan. Future financial plans are available upon request and are suggested when major changes occur. All financial planning work is included in the 1% or less fee paid throughout the year.
Assets Under Advisement
VanderPol Investments (VPI) provides advice not only on publicly traded securities, but on privately owned businesses as well. This service is different than most financial firms and is what makes VPI unique. Many investors have found their wealth while being an owner or major investor in a private company. We believe this engine of wealth creation should be considered and used whenever appropriate for our clients.
Private placement opportunities (opportunities to buy or lend to private businesses) are abundant in the world. To narrow our focus and provide valuable advice, VPI continuously evaluates Private Capital firms with whom clients may participate. Private Capital Firms lend to or invest in private businesses and are similar to actively traded mutual funds, but in the privately owned space. They analyze many private capital opportunities and attempt to generate the best returns possible. However, these funds also contain wide range of terms and conditions with some charging “2 and 20” while others may charge “1 and 10”, some require 12 year holding periods while others expect to be finished in 6 years, others are investing in specialized areas of interest like, Qualified Opportunity Zones, while most cover entire sectors like, real estate. VPI helps by performing due diligence on the terms and conditions, track record of the managers, investment strategy, team members, and parent firm. Picking the right investment partners for a 12 year holding period is a critical decision and can make all the difference.
How it works. VPI believes there are several opportunities that you may hear about or be privy to, but we narrow our focus to private capital funds from firms that likely manage a billion or more in assets. These firms will have professionals on staff for valuing private companies, analyzing their projected cash flows, drafting purchase agreements and financial relationships for moving capital. Once we have determined that a private capital fund is appropriate for you, we will review the fund with you and let you decide if you would like to make a commitment. If yes, then we make your commitment to the fund within your account held at Charles Schwab & Co., Inc. (our preferred, unaffiliated, custodian). From there we will sign a Limited Power of Attorney agreement allowing VPI to make capital calls on your behalf to the fund. Most funds will call your capital commitment over the next 5 years and begin paying out your principal and profit(loss) in years 6 through 12.
Private capital funds are unique in two ways. First, they are an irrevocable choice. This means that VPI can exercise due diligence up front, but cannot change your choice if circumstances change, markets drop, or a key manager dies. While we believe private capital funds will likely generate larger returns than publicly traded securities due to their illiquid nature, it also requires a good understanding of your cash flow needs, goals, and risk tolerance. Once committed, private capital funds are binding for the duration of the terms stated in the Private Placement Memorandum (PPM). Second, private capital funds are not “managed” by VPI and are thus an Asset Under Advisement (AUA). Regardless, VPI bills for these assets the same way it would if it were a managed mutual fund. In this way, clients can understand the service provided clearly. If the asset is held within the Schwab account, then it is charged the 1%-or-less annual fee. Additionally, private capital opportunities outside of private capital fund evaluations are considered outside of our realm of service.
Assets Under Management
VanderPol Investments manages stocks, bonds, mutual funds, ETFs, and other publicly traded securities on behalf of our clients. Clients open accounts at Charles Schwab & Co., Inc our preferred, unaffiliated, custodian. Client account types can be Roth IRAs, Traditional IRAs, Rollover IRAs, SIMPLE IRAs, SEP IRAs, solo 401ks, Brokerage accounts, Trust accounts or many others available at Schwab. VPI typically uses factor based ETFs in conjunction with individual stocks optimized to clients’ preferred level of risk. All the services listed above are included in our 1% or less fee charged throughout the year.