Firm Description
The Registered Investment Advisory firm, David S. Reinders, Inc., (“Reinders, Inc.”) was
founded in 2007.
Reinders, Inc. provides comprehensive personalized confidential financial planning and
investment management to individuals, pension and profit sharing plans, trusts, estates, and
small businesses. Advice is provided through consultation with the client and may include:
determination of financial objectives, identification of financial problems, cash flow
management, tax planning, insurance review, investment management, education funding,
retirement planning, and estate planning.
Reinders, Inc. is a fee–only financial planning and investment management firm. The firm
does not sell annuities, insurance, stocks, bonds, mutual funds, limited partnerships, or other
commissioned products. The firm is not affiliated with entities that sell financial products or
securities. No commissions in any form or finder’s fees are accepted by the firm.
The firm provides investment advice as an integral part of financial planning. In addition,
Reinders, Inc. advises clients regarding cash flow, college planning, retirement planning, tax
planning and estate planning.
A written evaluation of each client's initial situation is provided to the client, often in the form of
a net worth statement. Periodic reviews generally conducted semi-annually, are also
communicated to provide reminders of the specific courses of action that need to be taken.
More frequent reviews occur but are not necessarily communicated to the client unless
immediate changes to their investment account are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged directly
by the client on an as-needed basis. Conflicts of interest will be disclosed to the client in the
unlikely event they should occur.
The initial meeting is free of charge and is considered an exploratory interview to determine
the extent to which financial planning and investment management may be beneficial to the
client.
In this document, David S. Reinders, Inc. discloses all material conflicts of interest which could
reasonably be expected to impair the rendering of unbiased and objective advice.
Principal Owners
David S. Reinders is a 50% stockholder. Anne L. Reinders is a 50% stockholder.
Types of Advisory Services
Reinders, Inc. provides financial planning and investment supervisory services, also known as
asset management services and furnishes investment advice through consultations. On more
than an occasional basis, Reinders, Inc. furnishes advice to clients on matters not involving
securities, such as taxation issues, and trust services that may include estate planning.
As of December 31, 2022, Reinders, Inc. manages approximately $105 Million in assets for
approximately 245 client relationships.
All assets are managed on a discretionary basis. With discretionary authority, we make all
decisions to buy, sell or hold securities, cash or other investments in the managed account in
our sole discretion without consulting with you before implementing any transactions. You must
provide us with written authorization to exercise this discretionary authority. Discretionary
authority is limited. We do not have access to your funds and/or securities with the exception
of having advisory fees deducted from your account and paid to us by the account custodian.
Any fee deduction is done pursuant to your prior written authorization provided to the account
custodian. Reinders, Inc. does not act as a custodian of client assets. The client always
maintains asset control.
Tailored Relationships
The goals and objectives for each client are documented
in our client relationship management
system. Investment Strategies are created that reflect the stated goals and objectives. Clients
may impose restrictions on investing in certain securities or types of securities.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreement defines the typical client relationships.
Investment Advisory Agreement
An Investment Advisory Agreement is executed when the client decides to implement the
financial plan that Reinders, Inc. proposes. Fees included are for:
- Financial Planning Services which range between $2,000 and $4,000 annually, depending
on the complexity of the client’s financial goals and assets. Financial planning fees are
paid 50% upon commencement of the client relationship and after the first six months 25%
per quarter.
- Portfolio Management Services are calculated as a percentage of assets under
management as follows:
Total Account Assets Annual Percentage
Under $100,000 2%
More than $100,000, up to $400,000 1.8%
More than $400,000, up to $700,000 1.6%
More than $700,000, up to $1,000,000 1.4%
More than $1,000,000, up to $1,500,000 1.2%
More than $1,500,000, up to $2,000,000 1.1%
More than $2,000,000 1.0%
Asset Management Fees are charged quarterly in advance, which means that we invoice you
before the three-month billing period has begun. These fees are for Portfolio Management
Services only and do not include any transaction costs. Clients are responsible for paying
transaction costs that are charged by the brokerage firm that custodies the client’s account.
The firm does not receive any part of the transaction costs.
If a client terminates an Investment Advisory Agreement before the end of the first year, fees
for Financial Planning Services that were calculated at a fixed rate as detailed above, will be
recalculated at an hourly rate of $275.00 per hour, taking into consideration the actual number
of hours spent.
Hourly Planning Engagements
Reinders, Inc. provides hourly planning services for clients who need advice on a limited scope
of work. The hourly rate for limited scope engagements is $275.00.
Asset Management
Assets are invested primarily in no-load or low-load mutual funds and exchange-traded funds
through National Financial Services, LLC and Fidelity Brokerage Services LLC, (“together with
all affiliates: “Fidelity”) the brokerage firm that custodies our client’s assets. Fund companies
charge each fund shareholder an investment management fee that is disclosed in the fund
prospectus. Fidelity may charge a transaction fee for the purchase of some funds. Reinders,
Inc. does not receive any compensation, in any form, from fund companies.
Stocks and bonds may be purchased or sold through the client’s brokerage account with
Fidelity when appropriate. Investments may also occasionally include: equities (stocks),
certificates of deposit, investment company securities (variable life insurance, variable
annuities, and mutual funds shares).
Initial public offerings (IPOs) are not available through Reinders, Inc..
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by notifying
Reinders, Inc. in writing and paying the fees for the time spent on the investment advisory
engagement prior to notification of termination. If the client made an advance payment,
Reinders, Inc. will refund any unearned portion of the advance payment.
Reinders, Inc. may terminate any of the aforementioned agreements at any time by notifying
the client in writing. If the client made an advance payment, Reinders, Inc. will refund any
unearned portion of the advance payment.