Question 1

What types of accounts does BFG Wealth Management currently support?

Accepted Answer

We currently support taxable investment accounts including individual, joint, trust, and corporate accounts. We also support Traditional IRAs, Roth IRAs and Simplified Employee Pension (SEP) IRAs, IRA transfers and 401(k) rollovers.

Question 2

Who may open an account with BFG Wealth Management?

Accepted Answer

Any individual 18 or over, who is a legal U.S. resident or a U.S. citizen (with a permanent U.S. address) may open an account with BFG Wealth Management.

Question 3

Can I contribute to my account regularly?

Accepted Answer

Yes. You are able to contribute to each of your accounts weekly, monthly, and yearly, as well as a one-time basis.  The maximum amount that can be deposited to an account via EFT initiated with us is $5,000,000 per day. There are no maximum limits on deposits by check, wire, direct deposit, Bill Pay, or EFT initiated at your financial institution.
Please note that IRS regulations restrict the annual contributions of Traditional IRAs, Roth IRAs, and SEP IRAs based on a number of factors, including but not limited to, age, income, other existing qualified plans, etc.  Please consult a tax professional to determine the correct amount that you are able to contribute based on your own situation.

Question 4

Where is my money held?

Accepted Answer

Your assets are held in a brokerage account in your name at Goldman Sachs Advisor Solutions, a brand of Folio Investments, Inc (Folio). Folio is a leading provider of trading, custody and brokerage services to Registered Investment Advisors with the proven leadership experience, capital position, and technology expertise necessary to serve our clients.

Question 5

What is the minimum amount required to invest with our firm?

Accepted Answer

We don't have any minimum investment requirements. However, we recommend starting with at least $10,000. It's also important to ensure you have sufficient emergency cash reserves before investing.

Question 6

What are your fees for your Investment Management services?

Accepted Answer

Private Wealth Management
$0 to $500,000                        1.50%
$500,000.01 to $1,000,000          1.25%
$1,000,000.01 to $5,000,000       1.13%
$5,000,000.01 to $10,000,000     1.00%
$10,000,000.01 to $20,000,000   0.90%
$20,000,000.01 and up                0.80%

Institutions
$0 to $500,000                        1.50%
$500,000.01 to $1,000,000          1.25%
$1,000,000.01 to $5,000,000       0.80%
$5,000,000.01 to $10,000,000     0.70%
$10,000,000.01 to $20,000,000   0.60%
$20,000,000.01 and up                0.50%

Clients are responsible for the payment of all third-party fees (i.e. custodian fees, brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged by BFGWM.

For trades made outside of our BFG series investment strategies, Folio charges $3.95 per trade for market orders, limit, stop, or stop-limit orders. A client will be charged the Folio Brokerage Fee according to the following tired fee schedule, subject to a minimum fee of $100/year: Account Size Folio Brokerage Fee: $0-$500k is 0.20%; $500-$1,000k is 0.15%; $1,000k and up is 0.10%. If a client does not supply Folio with a valid email address, Folio is required to send the client paper statements, for which the client will be billed $150 per year ($12.50 monthly). Client will not be billed for paper statement if electronic statement delivery is chosen.

Question 7

Are there discounted investment management fees available for institutions and/or high net worth individuals?

Accepted Answer

Yes.  We understand that our clients in these categories are highly sophisticated and typically do not require the same level of support given to our traditional Investment Management clients.  Fee discounts begin at investment account sizes of $1 million, please see below for our Institutional Fee Schedule:
$0 to $500,000                        1.50%
$500,000.01 to $1,000,000          1.25%
$1,000,000.01 to $5,000,000       0.80%
$5,000,000.01 to $10,000,000     0.70%
$10,000,000.01 to $20,000,000   0.60%
$20,000,000.01 and up                0.50%

Question 8

I live outside of the United States, can I open an account?

Accepted Answer

We currently require all BFG Wealth Management clients to have a U.S. social security number or tax ID number and a permanent U.S. mailing address due to financial regulations.

Question 9

What is the difference between "long term" & "short term" capital gains?"

Accepted Answer

Long-term capital gains are taxed at a different (and lower!) rate. Here is Investopedia’s description of long-term capital gains tax rate (https://www.investopedia.com/articles/personal-finance/101515/comparing-longterm-vs-shortterm-capital-gain-tax-rates.asp#ixzz591BBNzrT)-- we really like their definition as it’s straight-forward and relatively jargon-free.

The IRS taxes long-term capital gains at a substantially reduced rate to encourage individuals and businesses to keep their investments. The difference between the long-term capital gains rate, generally referred to as simply the capital gains rate, and the ordinary income tax rate, which applies to short-term gains, can be almost as much as 20%.

Question 10

What are "Small-cap" and "Mid-cap" companies?"

Accepted Answer

“Cap” refers to market capitalization of a company. To calculate a company's market capitalization, multiply the total number of a company's outstanding shares by the current price to share. 
BFG Wealth Management defines "Small-cap" as approximately $500 million to $2 billion,  "Mid-cap" as approximately $2 billion to $10 billion, and "Large-cap" as approximately $10 billion or more.

Question 11

What is S&P 500?

Accepted Answer

"S&P 500" is an abbreviation for the Standard & Poor's 500 Total Return Index, a market-value weighted index of 500 stocks chosen to reflect the risk/return characteristics of the large cap universe and one of the common benchmarks for the US stock market. Any comparison to the S&P 500, or to any other benchmark, is shown for illustrative purposes only.

Question 12

What is a fractional share?

Accepted Answer

A fractional share is a partial share of an equity security equal to or less than one full share. Trading on an exchange can only happen in whole shares, which is why many investment platforms only allow you to trade in whole shares. However, unlike many other investment services, we use fractional shares to make sure that all of the money that you’ve allocated for investment is actually invested.

When you invest with us, you set the dollar amount that you wish to invest. Our platform then allocates the number of shares to you, even if they’re less than whole shares of stock. The full investment of every dollar according to your desired asset allocation means that your money is getting absolutely the most value possible out of investing. In addition, this means that our service is equal to all investors. An investor with a $4,000 account receives the same diversification benefit as one with a $4 million account.

Question 13

What is Goldman Sachs / Folio?

Accepted Answer

Goldman Sachs Advisor Solutions is a brand of Folio Investments, Inc. (Folio) is a registered clearing broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Folio, among other things, acts as the custodian, safeguarding the securities and cash.