Our Firm is a Registered Investment Adviser (RIA) located in Torrance, CA. The Firm registered
with the Securities and Exchange Commission (SEC) in 1988 and was incorporated on January
20, 2005.
The Firm provides three basic types of services for our clients: a managed account service
[Greater Value Account (GVA)], a variable annuity allocation service [Capital Asset Management
(CAM)], and a Quarterly Report Advisory Service. Fees for these services may be billed on a
fixed, hourly, or percentage of assets under management formula. Clients who choose to work
with our Firm on these accounts are provided with our Form CRS, ADV 2A and Supplements 2B
Disclosure Brochure. When we engage an ERISA client, those clients will also receive our
408(b)(2) Notice.
The GVA managed account service and CAM variable annuity allocation service each
involve the establishment of investment objectives, the gradual implementation of a portfolio
that attempts to meet the stated objectives, a frequent review of the securities within the
portfolio, and recommendations for the purchase and sale of securities within the portfolio.
Client portfolios are tailored to the individual needs of each client through investment selection
and asset allocation. Clients may restrict investments in certain securities or types of securities.
For CAM clients, the Firm’s ability to construct portfolios is inherently limited by the finite
amount of sub-accounts (investment options) available within the Client’s variable annuity
contract.
The Firm may assist managed account clients in other areas of finance. Generally, a client will
request information or assistance in these other areas, and we will attempt to provide
information, answer questions, and render assistance. Unless otherwise agreed upon, there is
no additional charge to provide this extra service.
All advisers of the Firm are also Registered Representatives and Investment Advisory
Representatives (“IARs”) with a non-affiliated, independent broker-dealer (member FINRA /
SIPC). As sole proprietors, and separate from the Firm, these advisers may also manage
investment portfolios via the investment advisory platform offered by their non-affiliated,
independent broker-dealer. When one of these accounts is established, the Form CRS, ADV Part
2A and Supplements Part 2B from the broker-dealer are provided to the client. Note: Any
advisory assets within the broker-dealer’s platform are not included in the assets under
management calculations for the Firm because they are in a separate program through a
separate firm.
Albitz/Miloe & Associates, Inc. ADV Part 2A 2B – Page 2
When furnishing investment advice through consultations, it is possible advisers of the Firm
will suggest utilizing services for portfolio management via the GVA managed account service.
Since the Firm receive fees for GVA portfolio management, a conflict of interest occurs.
As of 12/31/23, the Firm manages $1,893,276 of non-discretionary assets and $603,621,349 of
discretionary assets. Total assets $605,514,625.
The Quarterly Report Advisory Service involves data collection, establishing objectives,
reviewing circumstances and portfolios (held through our Firm and held outside our Firm), and
then making recommendations and/or suggestions to assist clients in an attempt to meet their
goals or answer their questions. If requested, a written report is prepared.
The report may
include specific recommendations to purchase, sell, or hold securities, along with other types
of recommendations that may not involve securities. Other types of recommendations could be
a review of and suggestions for beneficiary designations on retirement accounts, life insurance,
annuities, etc. We might be asked to make recommendations on amounts of life insurance
needed, whether to have an umbrella liability rider on their homeowner’s insurance; comments
on when to take social security benefits; assisting with required minimum distribution
calculations and advice as to which account to take the withdrawal from; and providing general
market commentary. While we cannot list everything, this should give a general idea of what a
Quarterly Report Advisory service might entail.
The cost of this service is negotiated and is dependent upon the amount of time required to do
the analysis, the complexity of the case, and the necessity for meetings and review. The fee for
this work is billed and is payable after the work is completed to the satisfaction of the client.
If the client chooses to work with the Firm on a quarterly review basis, we will prepare a
quarterly report (on occasion, this may include a spreadsheet valuing assets), make
recommendations (which may include a review of the prior quarter’s results), and offer to meet
with the client to discuss aspects of the client’s financial situation.
At times, we offer advice on individual real estate holdings: Decisions as whether to buy,
refinance, sell, or hold real estate can be part of the Quarterly Report Advisory service. As such,
fees are quoted on an individual, case-by-case basis.
IRA Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor (“DOL”) Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL’s
Prohibited Transaction Exemption 2020-02 (“PTE 2020-02”) where applicable, we are
providing the following acknowledgment to you.
Albitz/Miloe & Associates, Inc. ADV Part 2A 2B – Page 3
When we provide investment advice to you regarding your retirement plan account or
individual retirement account, we are fiduciaries within the meaning of Title I of the Employee
Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are
laws governing retirement accounts. The way we make money creates some conflicts with your
interests, so we operate under a special rule that requires us to act in your best interest and not
put our interest ahead of yours. Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice);
• Never put our financial interests ahead of yours when making recommendations (give
loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your
best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account
that we manage or provide investment advice, because the assets increase our assets under
management and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when
we believe it is in your best interest.