The minimum size of asset is $250,000 to establish a client relationship with Songbird.

We use a sliding fee schedule, in which we charge $2,500 on the first $250,000; from $250,000 – $1,000,000, we charge 0.6% on the assets; and for the amount above $1,000,000, the rate will be reduced to 0.4%. Assuming assets under management of $2,000,000, the fee calculation would be as follows: $2,500 + $750,000 x 0.6% + $1,000,000 x 0.4% = $11,000, which equates to 0.55% effective annual rate for $2,000,000 under management.

The fee schedule above is quoted as an annual fee. We typically charge directly to clients’ accounts monthly in arrears with clients’ prior consent. Monthly fee is one twelfth of the annual rate.

Fee-only advisers charge the management fees for providing clients investment advisory services.  The fees they charge their clients are the only source of revenue.  Fee-only advisers do not sell products, take commissions or share any type of fees or take compensation from brokerage firms or mutual fund companies.

Fee-based advisers can take commissions and share sale charges or be compensated by brokerage firms and mutual fund companies for selling their products.

We believe that as a fee-only adviser our interests fully align with our clients and focus on the best interest of our clients.

No, Songbird is not a broker dealer.

Songbird is not a custodian of client’s assets. We recommend our clients to consolidate their assets with Charles Schwab & Co., which is the custodian and the broker dealer for our clients’ accounts. Songbird is an independent investment adviser and is not associated with Charles Schwab although we use Charles Schwab Institutional Platform to manage our clients’ assets. Charles Schwab provides technology and operational support to Songbird. Songbird does not receive any type of monetary compensation from Charles Schwab. For the detailed disclosure, please check Form ADV 2A & 2B.

Songbird manages clients’ assets on a discretionary basis only.  Our clients grant us trading authority when they hire us to manage their portfolios.  Songbird’s investment manager usually determines the asset allocations based upon a client’s specific situation and creates a model portfolio for the client.   When implementing the investment portfolio, Songbird’s investment manager will determine the timing and the size of purchases or sales.  Clients will receive detailed trade confirmations directly from Charles Schwab on all purchases/sales.

Charles Schwab has a long history and a good reputation for serving independent advisers.  Its advanced technology platform, quality services and competitive fees are the main reasons we selected Charles Schwab Institutional Platform to manage our clients’ accounts.

Songbird does not have access to clients’ assets. Clients only grant Songbird authority for trading and the deduction of quarterly management fees from the accounts.

Charles Schwab, as custodian, will provide tax statements at year end to help with your tax preparation.