Firm Description
BERKELEY, INC. (the Firm) was founded in 1996.
BERKELEY, INC. provides personalized, confidential financial planning and
investment management to individuals, pension and profit-sharing plans,
trusts, estates, charitable organizations 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.
BERKELEY, 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.
BERKELEY, INC. does not act as a custodian of client assets. The client
always maintains asset control. BERKELEY, INC. places trades for clients
under a limited power of attorney.
A written evaluation of each client's initial situation is provided to the client,
often in the form of a net worth statement or list of investable assets. Periodic
reviews 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 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, which may be in person or by telephone (208-853-6980),
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.
Principal Owners
Michael Ling is a 50% stockholder. P. Stephen White is a 50% stockholder.
Types of Advisory Services
BERKELEY, INC. provides investment supervisory services, also known as
asset management services; manages investment advisory accounts not
involving investment supervisory services; furnishes investment advice
through consultations; issues special reports about securities; and issues,
charts, graphs, formulas, or other devices which clients may use to evaluate
securities.
On more than an occasional basis, the Firm furnishes advice to clients in
areas not involving securities, such as financial planning matters, taxation
issues, and trust services that often include estate planning.
As of January 1, 2023 BERKELEY, INC. managed approximately
$335,000,000 in assets for approximately 202 clients. All of the $335,000,000
is managed on a discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in the Firm’s client
relationship management system and financial planning software.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
A financial plan is designed to help the client with all aspects of financial
planning without ongoing investment management after the financial plan is
completed.
The financial plan may include, but is not limited to: 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.
The fee for a financial plan is predicated upon the facts known at the start of
the engagement. The financial planning fee range is usually $2,000-$5,000
and is negotiable.
In the event that the client’s scope of service
is substantially different than
disclosed at the initial meeting, a revised fee will be provided for mutual
agreement. The client must approve the change of scope in advance of the
additional work being performed.
After delivery of a financial plan, future face-to-face meetings may be
scheduled as necessary for up to one month. Follow-on implementation work
is billed separately at the rate of up to $325 per hour.
Investment Advisory Agreement
Most clients choose to have BERKELEY, INC. manage their assets in order
to obtain ongoing in-depth advice and life planning. Many aspects of the
client’s financial affairs are reviewed, often including those of their children.
Realistic and measurable goals are set and objectives to reach those goals
are defined. As goals and objectives change over time, additional
recommendations are made.
An Investment Advisory Agreement is provided to the client in writing prior to
the start of the relationship. This agreement includes a basic expectation of
the design of the client’s portfolio(s).
The annual Investment Advisory Agreement fee is based on a percentage of
the investable assets according to the following schedule:
0.90% on the first $500,000;
0.75% on the next $500,000 (from $500,001 to $1,000,000);
0.60% on the next $1,000,000 (from $1,000,001 to $2,000,000);&
0.45% on the assets above $2,000,000.
The minimum annual fee is $2,500 and may be negotiable. Current client
relationships may exist where the fees are higher or lower than the fee
schedule above.
Although the Investment Advisory Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client or the investment manager may terminate an
Agreement by written notice to the other party. At termination, fees will be
billed on a pro rata basis for the portion of the quarter completed. The
portfolio value at the completion of the prior full billing quarter is used as the
basis for the fee computation, adjusted for the number of days during the
billing quarter prior to termination.
Hourly Planning Engagements
BERKELEY, INC. provides hourly planning services for clients who need
advice on a limited scope of work. The hourly rate for limited scope
engagements is up to $325.
Asset Management
Assets are invested primarily in no-load or low-load mutual funds and
exchange-traded funds, usually through custodians and discount brokers.
Mutual fund companies charge each fund shareholder an investment
management fee that is disclosed in the fund prospectus. Custodians and
discount brokerages may charge a transaction fee for the purchase of some
funds.
Stocks and bonds may be purchased or sold through a brokerage account
when appropriate. The brokerage firm may charge a fee for stock and bond
trades. BERKELEY, INC. does not receive any compensation, in any form,
from brokerage companies.
Accredited investors have the option to invest in a few private placement
programs. BERKELEY, INC. does not have any financial arrangement with
these firms. The fees charged to the client are assessed like any other
investment when calculating the total fee as described in the “Investment
Advisory Agreement.”
Investments may also include equities (stocks), warrants, corporate debt
securities, commercial paper, certificates of deposit, municipal securities,
investment company securities (variable life insurance, variable annuities,
and mutual funds shares), U. S. government securities, options contracts,
futures contracts, and interests in partnerships.
Initial public offerings (IPOs) are not available through BERKELEY, INC.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by
notifying BERKELEY, INC. in writing and paying the rate for the time spent on
the investment advisory engagement prior to notification of termination. If the
client made an advance payment, BERKELEY, INC. will refund any unearned
portion of the advance payment within 30 days.
BERKELEY, INC. may terminate any of the aforementioned agreements at
any time by notifying the client in writing. If the client made an advance
payment, BERKELEY, INC. will refund any unearned portion of the advance
payment within 30 days.