For your convenience we have compiled some of the most frequently asked questions about Potomac Wealth Management, LLC. We also encourage you to contact us directly to explore your options in working with us on managing your personal assets, retirement planning, wealth management and preservation strategies as well as company retirement plan management and fiduciary services.
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We are an independent Registered Investment Advisory practice that works with a select group of clients to help them make intelligent decisions with their investments and finances. We have significant experience working with high net worth clients and understand their unique needs. As fee only advisors, we have removed the conflicts of interest that exist with most brokerage, banking and other commission based providers. We are motivated only by providing the best possible advice to our clients and not by the need to sell certain products in order to earn a commission. Removing conflicts of interest in order to be completely objective with our advice, along with our independence, is central to our service model and one of many qualities that sets us apart from larger institutions.
A fee-only Registered Investment Advisory (RIA) company is one that does not earn or accept commissions or revenue from sources other than its clients for services rendered. At its core, the fee-only model differs from other models that receive compensation from sources other than the client in the form of commissions paid by mutual fund companies or insurance companies. Those commissions, often substantial, may tempt an advisor to provide an investment solution that generates the best outcome for themselves at the expense of the clients. Advisors at most large brokerage firms and banks are required to generate and maintain a certain level of commission income in exchange for their continued employment. At Potomac Wealth Management, LLC, clients can rest assured that our investment models and recommendations are made based on sound academic underpinning with the client's interests as the only priority.
Minimum account sizes at Potomac Wealth Management, LLC are $500,000 per client. Household accounts may be aggregated to meet this threshold. Exceptions may be made to our stated minimum account size at the discretion of the advisor. Please inquire with us if you would like to discuss your personal situation in greater detail.
As you consider various service providers to manage your funds, you will want to be sure there is an independent third party serving as a safekeeping function for your investments. That provider is referred to as a custodian; they provide a measure of safety and protection for your funds against fraudulent schemes. Potomac Wealth Management, LLC currently uses Altruist as our custodian and clearing firm.
A fiduciary is defined by the Encarta dictionary as: "A manager entrusted to control property or to act on behalf of and for the benefit of another". In other words, a fiduciary is required to put the client's interests ahead of all others' including their own. Most broker dealers, insurance agents and other commission eligible service providers do not serve in a fiduciary capacity.
We believe markets work and that prices reflect the collective information and expectations of millions of participants. Instead of trying to outguess short-term market movements, we focus on building globally diversified portfolios that reliably capture the broad returns markets offer. Effective implementation is central to our approach: we prioritize cost-efficient trading, disciplined rebalancing, and tax-aware portfolio management to help maximize each client's after-tax results. Above all, we maintain a long-term perspective, recognizing that successful investing requires patience, consistency, and a clear connection to each client's goals and tolerance for risk. Our role is to provide structure, clarity, and discipline—helping investors stay focused through market cycles and make decisions rooted in evidence rather than emotion.
We provide robust periodic performance reporting for clients on a scheduled basis, not less than annually. Our performance reviews include an aggregate look at all accounts together as well as a look at how individual accounts have performed. Performance is also monitored at the account level and at the individual security level. Among the many features included in the report is a breakdown of how client assets are allocated among different asset classes which helps maintain adherence to financial planning guidelines.
Either party upon written notice may terminate client relationships at any time without penalty.
That form is available at this link for download.