Orcam’s services are customized to each individual client. Because of this it’s difficult to say whether we will be a perfect fit for your needs. Here are some common questions that might help you decide whether Orcam is a good fit:
1) Are you paying high fees and looking to reduce your fees? At .2%-0.35% Orcam has one of the most competitive fee structures in the asset management business. In addition, any financial advisory services are wrapped in this low fee.
2) Are you skeptical about “active management”, Modern Portfolio Theory and “passive” indexing approaches? Orcam’s approach is different from the standard high fee “market beating” sales pitches that consistently fail to live up to expectations. Our indexing approach is more akin to a low fee Vanguard style indexing approach, however, unlike a static indexing approach we create portfolios that are countercyclical and therefore better align the investor’s risk profile with the relative risks of the underlying assets in the portfolio.
3) Are you too busy to manage your own investments? Many people are simply too busy with life to manage their portfolios year-round. Our low fee indexing approach provides clients with a tax efficient and low fee approach that is systematically managed year-round so that the investor can focus on their lives and work without the hassle of portfolio management.
4) Do you tend to be overly emotional and reactive to your portfolio? Research has shown that the most valuable aspect of having a financial advisor is helping you establish a plan and stick to that plan. In many ways an advisor is like hiring a personal trainer. They’re not going to turn you into the next Arnold Schwarzenegger, but they will establish a plan, help to maintain that plan and help you avoid making many of the big mistakes that would otherwise result in you being worse off without the trainer.
5) Are you a patient and cyclical investor? Our approaches can take years to play out because of their inherently cyclical nature. If you’re looking for short-term “market beating” returns our cyclical approach might not be ideal for you. Our portfolios are designed around a minimum of 3-5 year time horizons and require some degree of patience without the unrealistic idea of the “long-term” that is necessary for so many indexing strategies.
6) Are you concerned about your risk profile and your current asset allocation? Our alternative approach to risk profiling and asset allocation can create much greater stability in portfolios relative to the traditional advisory approach which tends to be much more aggressive than what we often find to be appropriate.
7) Are you looking for financial planning without the 1% fees? Our 0.2%-0.35% fee is a comprehensive wrap fee that covers asset management fees, financial planning fees and a comprehensive review of outside financial accounts (such as 401k plans, etc).