Isn’t there something you’d rather be doing than worrying about your investments?
TJ Stearns - Established - Certified
© 2010 TJ Stearns, Inc. All Rights Reserved.
Frequently Asked Questions
Which organization oversees and regulates Tim Stearns?
Tim Stearns is a Registered Investment Advisor Representative with advisory services provided by Brookstone Investment Advisor Services an SEC registered RIA. To verify Tim’s status as a Registered Investment Advisor Representative, you may follow this link to the Security and Exchange Commission’s Website here: www.sec.gov
What do these financial industry designations mean?
You can conduct a search of financial advisors designations and learn more about those designations and their meanings through the Financial Industry Regulatory Authority at www.finra.org.
How do I verify Tim’s status as a Certified Financial Planner?
There is only one international organization of Independent financial planners - the National Association of Personal Financial Advisors (NAPFA)”. NAPFA has strict business and ethical standards for its members in addition to allowing ONLY those planners who accept no commissions from the sale of insurance or investment products.
To verify Tim’s membership status as a NAPFA registered financial advisor, visit NAPFA’s website here: http://www.napfa.org and click the link to “Find a NAPFA Registered Independent Financial Advisor”, then search the Chicagoland Northern IL area.
Does Tim belong to any other professional organizations?
Tim is a member of the CFP Board, FINRA, and the Illinois Dept of Insurance.
What type of authority will Tim Stearns and TJ Stearns, Inc. have over my accounts?
As your Chicagoland based Registered Investment Advisor Representative - we will have the authority to:
1.Make transactions in your Brookstone account in order to allocate your investments according to your financial plan and the Investment Policy created for you;
Make transactions in your Brookstone account in order to allocate your investments according to your financial plan and the Investment Policy created for you;2.Request a check be sent directly to you, or a transfer be made to a like named account. No funds can be withdrawn or likewise transferred out in any other name except for your own. For example, Brookstone will not send a check to “John Doe” at our request, but they will send one to you at our request.
Request a check be sent directly to you, or a transfer be made to a like named account. No funds can be withdrawn or likewise transferred out in any other name except for your own. For example, Brookstone will not send a check to “John Doe” at our request, but they will send one to you at our request.3.Deduct management and investment advisory fees from your accounts per our Advisory Services Agreement and Fee Schedule. Account debits in excess of the normal or usual investment advisory fees are not allowed. Brookstone has both have safeguards in place to prevent excessive investment advisory fee debits from being processed.
Deduct management and investment advisory fees from your accounts per our Advisory Services Agreement and Fee Schedule. Account debits in excess of the normal or usual investment advisory fees are not allowed. Brookstone has both have safeguards in place to prevent excessive investment advisory fee debits from being processed.4.View online, monitor and maintain, and discuss your accounts directly with you.
View online, monitor and maintain, and discuss your accounts directly with you.Are TJ Stearns’s fees deductible?
IRS Code Section 212 states that investment advisory and financial planning fees incurred may be deductible as miscellaneous itemized expenses to the extent that they exceed 2% of your adjusted gross income. Other miscellaneous itemized deductions which fall into the same category are fees paid for a safe deposit box, estate planning fees, tax preparation fees, attorney and legal fees, and more. So the short answer is fees paid for wealth advisory services may be deductible and we encourage our clients to ask their accountant or CPA about the deductibility of fees.
Can you take my money?
No. Your portfolio will be custodied at First Southwest Clearing. Both custodians have implemented safeguards to protect you and your financial assets. For example:
1.Any money leaving your account will only be sent by the custodian directly to your address of record and in your name. Your address cannot be changed without your written consent, and the Institutional Service Team verifies your signature matches the one they have on file for such a request;
Any money leaving your account will only be sent by the custodian directly to your address of record and in your name. Your address cannot be changed without your written consent, and the Institutional Service Team verifies your signature matches the one they have on file for such a request;2.Any money transferred out of your account (with the exception of the firm’s investment management fees) may only be transferred into an account with the exact same registration. For example, an account in the name of John and Jane Doe may only transfer to another account in the exact name of John and Jane Doe;
Any money transferred out of your account (with the exception of the firm’s investment management fees) may only be transferred into an account with the exact same registration. For example, an account in the name of John and Jane Doe may only transfer to another account in the exact name of John and Jane Doe;3.Both custodians retain on file a copy of the Firm’s most current Form ADV. Attempts to debit your account for investment management fees substantially in excess of the norm are immediately flagged as an excessive percentage of your portfolio and validated with an appropriate reason only (in the case of client fees for several accounts being taken from one account for example).
Both custodians retain on file a copy of the Firm’s most current Form ADV. Attempts to debit your account for investment management fees substantially in excess of the norm are immediately flagged as an excessive percentage of your portfolio and validated with an appropriate reason only (in the case of client fees for several accounts being taken from one account for example).Do you have Professional Liability Insurance (E&O)?
Yes. Through Brookstone Securities, Tim Stearns carries professional liability insurance in the amounts of $1,000,000 per claim maximum and $2,000,000 per year total. If you would like a copy of our professional liability insurance policy please request one directly from Brookstone Securities.
Is my information safe with TJ Stearns?
Through Brookstone Securities, TJ Stearns Inc. maintains state-of-the-art information handling security measures. While no guarantees can be made in today’s world of high-tech criminals and hackers, we have consulted with leading computer security experts about policies and procedures. As such, we feel confident we are doing everything we can to protect our clients to the maximum extent available with the current technology. We are very concerned with computer security and take this matter very seriously.
In addition, we shred all client documents using a cross cut, high capacity shredder and test our security measures on a regular basis.
Is my information confidential?
Yes. By law we cannot disclose your private information to anyone but you directly, or your other financial advisors (attorneys, accountants, estate planners) and only with your consent. Our client’s information is highly confidential; we take this matter very seriously.
Do you guarantee returns?
No. We absolutely do not guarantee returns whatsoever, under any circumstances. Alternatively, we help design solid and focused financial and retirement plans for our clients. These plans are designed to help them achieve their goals. We cannot predict the future performance of any investment vehicle nor guarantee returns in or of any form.
Can I speak to some references?
Absolutely! We work diligently for all of our clients and as such, the overwhelming majority of them are happy to provide a reference regarding our services. While not every client chooses to provide a reference (some high profile clients wish to maintain their privacy), you can contact TJ Stearns, Inc. directly and we will be happy to contact clients for permission to pass along their names and contact information to you.
Do you hold my money directly?
No. TJ Stearns Inc. will not take possession of cash or securities in any form for any time frame. We provide clients with postage paid envelope to forward checks and/or securities directly to Brookstone, and of course provide you detailed instructions on the safest manner for funding your accounts.
Is my money safe at Brookstone?
Brookstone is a member of the Securities Investor Protection Corporation (SIPC), the assets you have custodied are insured by SIPC up to $500,000 for each separate account including up to $100,000 in cash.
Such insurance DOES NOT protect your investment principal from market fluctuation or volatility; however it does provide an amount of protection in the event of your custodian going out of business.
Are your fees competitive to other providers?
Our fees are not only competitive, they’re a great value for the services provided and value added to your financial and investment planning! We’re happy to provide you with a side-by-side comparison of the fees you’re paying or the proposed fees you’ll pay another financial advisor and our fees. Our fee schedule is reasonable and simple to understand. Most importantly, we practice full disclosure.
Do you have a minimum investment portfolio size?
No. When you work with TJ Stearns, Inc., you will work directly with Tim Stearns, a Registered Investment Advisor Representative, CFP®. Tim puts his substantial experience, knowledge, and credentials to work for each an every client equally. Rather than providing smaller clients the disservice of a lower level and quality of service as most other financial advisors do, Tim provides every client the same attention to detail, regardless of portfolio size. An average new client relationship takes approximately 10 to 15 hours of meetings, consultations, reviews, research, and behind the scenes planning and preparation - and that's just the first few months of a relationship!
Can you provide advice related to my retirement plan at work?
Yes, as part of the evaluation and planning process, Tim helps ensure your investment assets, both through work related retirement plans and separately held at the directed custodian, will work together in compliment.
