Firm Description
MCS Family Wealth Advisors (MCS) offers asset management, personal
financial planning and family wealth counseling to individuals, families,
pension plans, business owners and family businesses. We specialize in
providing hard-to-break wealth management strategies for high-net-worth
clients. MCS offers informed and objective, yet highly personalized services,
which may include asset management; retirement, estate, fringe benefits,
education, charitable goals or special needs planning; family business issues
including succession; expert witness testimony; and family business or family
wealth diagnostic tools.
MCS is an independent, privately owned, fee-only wealth management firm
and was founded in 1991 by Michael C. Stalker, CFA. MCS employs Michael
Stalker and Jeff Yamada, a Certified Financial Planner® professional. MCS
outsources most of its non-professional tasks to specialists in fields such as
accounting, human resources, and operations. This structure allows our
advisors to focus their attention on professional services to our clients.
Independent means that we work for the client. MCS does not represent or
work for any other financial institution or firm. Clients receive unbiased,
individually tailored recommendations based solely on their personal and
financial needs and goals. Fee-only means that clients compensate MCS
directly for our services and all of our charges are clearly disclosed. We are
not influenced by potential commissions or referral rewards.
Our financial philosophy is based on research that shows conservative risk-
taking often leads to greater wealth accumulation than aggressive risk-taking.
We strive to produce more predictable results by narrowing the range of
possible outcomes. Our approach promotes consistent long-term asset
growth. We manage risk to increase wealth® for our clients.
The professionals at MCS take a pragmatic approach to achieve the best
possible outcome. We designed our approach to reduce the volatility of
returns, and our mission is to Transform money from a source of worry to a
resource for fulfillment®.
MCS asset management clients engage independent custodians, such as
Charles Schwab & Co., and MCS obtains a limited power of attorney from
each independent custodian to provide portfolio management services.
Clients receive account statements from both their independent custodian
and MCS.
Firm History
MCS Family Wealth Advisors was founded in 1991 by Michael C. Stalker,
who began his financial career in 1983 as a stockbroker for NYSE member
Newhard, Cook & Co. Michael soon came to realize that the interests of
financial service companies often conflicted with the financial goals of the
client. He saw that many clients needed more than mere brokerage services
(i.e. facilitating the purchase of investment products). Clients needed
unbiased investment advice from someone who would act in their best
interests. In 1988, Michael earned the Chartered Financial Analyst
designation, and began managing client investment assets in a fiduciary
capacity in 1991.
As the financial planning profession grew, Michael realized that many of his
clients required services that went beyond asset management. In 1998,
Michael met the requirements to hold the Certified Financial Planner®
designation, and since 2003 Michael has employed Certified Financial
Planner® professionals on his staff.
MCS is an independent, fee-only firm.
Types of Advisory Services
MCS provides investment supervisory services, also known as asset
management services or investment management services, and
comprehensive financial planning services. These services are described in
more detail in the “Types of Agreements” section of this brochure.
Occasionally, MCS furnishes advice to clients on matters not involving
securities, such as individual components of financial planning (including, but
not limited to: retirement planning, estate planning, tax planning, or education
planning), expert witness, business consulting, and family wealth consulting
services.
MCS also receives income from administering the Aspen Family Business
Inventory, an assessment used in family business consulting.
Sub-Advisors
As part of our investment advisory services, we may use one or more sub-advisors
to manage a portion or all of your investments on a discretionary basis. The sub-
advisor(s) may use one or more model portfolios to manage your account and/or
they may design a custom portfolio. We will regularly monitor the performance of
your accounts managed by the sub-advisor(s), and may hire and/or fire any sub-
advisor or re-allocate your assets without your prior approval based on you
granting our firm discretionary authority.
Upon entering into a Statement of Understanding with us, you authorize us to use
sub-advisor(s) to service your account. You agree to allow us to share non-public,
personal information with the sub-advisor for the purpose of administering and
managing your account. We require any sub-advisor to execute a confidentiality
agreement and not share Client information with any unauthorized person or entity.
If a sub-advisor is utilized for your account, you will incur additional advisory fees.
On your behalf, MCS will exercise its best efforts to negotiate the lowest sub-
advisory fee available. You will be required to execute a limited power of attorney
(“LPOA”) with MCS authorizing the sub-advisor to trade securities in your
account, deduct its fee directly from your brokerage account, and granting MCS
the power to open one or more separate brokerage accounts for the sub-
advisor(s) at the custodian.
Principal Owners
The Restated Stalker Family Trust is the sole owner of MCS Financial
Advisors, LLC, dba MCS Family Wealth Advisors.
Amount of Assets Under Management
As of 12/31/2022, MCS manages approximately $146,775,000 in assets for
68 clients. All assets are managed on a discretionary basis.
We Do Not Participate in Wrap Fee Programs
MCS does not sponsor, nor has it ever sponsored, any wrap fee program. A
wrap fee program is defined as any advisory program under which a specified
fee or fees not based directly upon transactions in a client’s account is
charged for investment advisory services (which may include portfolio
management or advice concerning the selection of other investment advisers)
and the execution of client transactions.
Agreements and Compensation
The following agreements define the typical client relationships.
Investment Management Agreement
The financial needs of each person, each family, and each business are
unique. We learn as much as we can about a client’s situation - financial
status, lifestyle, values, and goals. This attention to each individual allows the
professionals at MCS to provide effective investment selection and ongoing
care of the investment portfolios under our management.
A Statement of Understanding is executed by the client and Michael Stalker
for all Asset Management engagements.
MCS provides investment management services on a discretionary basis.
Investment Management Fees
The annual fee is subject to a $19,000 per client per year ($4,750 per quarter)
minimum. Client accounts may be aggregated for fee calculation purposes.
Where an exception to this minimum is granted for grandfathered Clients or
for family members of Clients or employees, the minimum annual Fee may be
expressed as 0.95% of assets with lower annual minimum amounts or, for
Allied Professionals (defined as an attorney, tax professional or consultant
with whom MCS shares, or shared, a client), 0.95% of assets with a $9,500
annual
minimum fee. In any case, the annual fee will not exceed 3% of the
value of assets under management. Fees for portfolio advisory and
management services are based on the account market value, prorated for
any cash flow, at the end of each quarter. If the management of the Account
commences at any time other than the beginning of a calendar quarter, the
first quarterly fee shall be the greater of the prorated minimum quarterly Fee,
or the prorated cash flows occurring during the quarter times the above
scheduled percentages. Fees are deducted directly from Client’s brokerage
account upon separate written authorization, unless Client requests to pay by
check. Clients who pay by check are mailed an invoice. Payment of fees may
result in the liquidation of Client’s securities if there is insufficient cash in the
Account. If Client assets are invested in mutual funds, Client may be required
to pay, in addition to the Adviser’s fee, a proportionate share of the mutual
fund’s fees and charges. Clients are responsible for fees charged by their
custodian, such as trade commissions, wire transfer fees, special custody
fees, etc.
Our fee schedule is as follows:
First $2,000,000: $19,000 annually
Next $3,000,000: 0.85%
Next $5,000,000: 0.70%
Balances over $10,000,000: Negotiable
Comprehensive Financial Planning Agreement
A comprehensive financial plan is designed to help clients with the major
aspects of their finances and does not require investment management after
the financial plan is completed (although asset management may be part of
the engagement). Comprehensive financial planning services are outlined in
the Financial Planning Engagement Letter.
The financial plan may include, but is not limited to: a SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis; a net worth statement; a
cash flow statement; a review of investment accounts, including reviewing
asset allocation and providing repositioning recommendations; strategic tax
planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning
review and recommendations; and education planning with funding
recommendations.
Detailed investment advice and specific recommendations are provided as
part of a financial plan. Implementation of the recommendations is at the
discretion of the client.
Financial Planning Fees
The estimated fee for a financial plan is based upon the facts known at the
start of the engagement. Fees are computed at an hourly rate of $300 or
$400 (depending on the advisor), and the final cost generally runs between
$7,000 to $10,000 for a personal financial plan and $12,000 to $25,000 for a
financial plan for business owners. Fees are billed monthly in arrears, and
clients are required to make an initial payment of $2,500 before a
comprehensive financial planning engagement begins.
Since financial planning is a discovery process, certain financial exposures or
predicaments may be brought to the client’s attention. Once identified,
additional time and expense may be needed to address these issues. Also,
clients impact the overall cost of the financial plan by providing accurate and
complete information, making financial plan development less time
consuming.
After delivery of a financial plan, future face-to-face meetings may be
scheduled as necessary. Should the client wish to engage MCS to assist in
implementation of planning recommendations, this service can be performed
at a reduced rate of $225 per hour (see Hourly Planning Engagements).
Hourly Planning Engagements
In certain circumstances financial advice that falls outside of our asset
management or comprehensive financial planning services may be provided
at the request of the client. This may include personal or corporate business
and financial matters not involving securities, such as acting as an expert
witness in securities litigation cases, insurance consultation, succession
planning, estate planning, etc. These services are computed at an hourly rate
as services are delivered and are invoiced monthly.
Hourly rates are:
Family Business / Wealth Counseling $400
Chartered Financial Analyst (CFA) $400
CERTIFIED FINANCIAL PLANNER® (CFP®) Professional $300
Expert Witness Engagement $500
Concierge / Financial Plan Implementation $225
Family Business Consulting and Business/Practice Consulting may be billed
on an hourly, project or per diem basis. Rates vary by scope of the
engagement.
MCS does not provide investment management or investment allocation
advice on a stand-alone, hourly basis. Securities investment supervision on a
fiduciary basis involves continuous, ongoing monitoring of client assets, and
advice given today could be impacted dramatically by tomorrow’s events.
Termination of Agreement
A Client may terminate the Comprehensive Financial Planning or Hourly
Planning Engagements at any time by notifying MCS in writing and paying the
outstanding hourly charges for the time spent on the engagement prior to
notification of termination. If the client made an advance payment, MCS will
refund any unearned portion of the advance payment.
MCS may terminate any of the aforementioned agreements at any time by
notifying the client in writing. If the client made an advance payment, MCS will
refund any unearned portion of the advance payment.
Conflict of Interest Management
MCS limits potential conflicts of interest in the following ways:
We are independent – no other firm owns MCS, nor does MCS own
other financial firms. We are not affiliated with a brokerage firm, an
insurance firm, a bank, or any other financial institution that would
directly or indirectly compensate us for our clients’ business
We do not participate in Wrap-Fee programs
We do not manage or act as principal in any private investment funds
We do not sell insurance or other financial products for a commission
We do not act as principal and sell securities that we own to our clients
We do not have performance fee arrangements
We do not enter into “Soft Dollar” agreements with brokers
We do not participate in revenue-sharing arrangements
We neither pay nor receive client referral fees
A potential conflict of interest arises when our Investment Management
clients engage us for financial planning. Any financial planning advice that
increases assets under our management will increase the investment
management fee, and any advice that decreases assets under our
management will decrease the management fee. The types of questions
which could give rise to this conflict are questions such as: whether to pay off
or pay down a home mortgage; whether to take a lump sum or an annuity
from a pension plan; and whether to invest or maintain investments in assets
that we will not manage. We strive to maintain a high degree of objectivity and
to ensure that our advice is not based on these considerations. However, the
potential for conflict of interests exists, and investment management clients
should be aware of that fact as they consider our financial planning
recommendations.
Performance-Based Fees
Performance-based fees are fees based on a share of capital gains on or capital
appreciation of the assets of a client (this formula is common in hedge funds or
other pooled investment vehicles), usually in comparison to a market benchmark
index. MCS believes that performance-based fees may provide an incentive to
favor riskier investments that are more likely to produce volatile returns, a result
anathema to our investment philosophy.
MCS does not charge performance-based fees.