Frequently Asked Questions

Getting Started

Investment Strategy

Account Operations & Reports

Insurance & Other Matters

Getting Started

What if I want to transfer my account from another investment firm?

Archer Investment Management will assist you and act to minimize any fees your current broker / custodian charges that are associated with transitioning your current portfolio.

What is the next step if I want to hire Archer Investment Management?

Contact us to set up an initial meeting to determine if Archer Investment Management is a good fit for your needs.

Investment Strategy

Am I involved in the day-to-day management decisions?

Archer Investment Management has discretion over all accounts and manages portfolios day-to-day so clients do not have to be involved. Each portfolio follows an individual asset allocation that is decided in advance and outlined in a written Investment Policy Statement. If a client wishes to change their asset allocation because of a change in their situation, an updated Investment Policy will be written.

How will I know a trade has occurred in my account?

Charles Schwab will notify you by mail or email each time Archer Investment Management makes a trade in your account. All trades are conducted in accordance with your written Investment Policy Statement. You do not need to contact anyone when you see a trade has been made.

Do investments differ from client to client?

Many investments are used in all portfolios although the percentage allocated to an asset class may differ depending on the needs of each client. In addition, taxes may affect which investments are selected for taxable accounts. If a portfolio is made up of several different accounts, such as multiple trust accounts, then there will likely be different funds allocated to the different accounts. That reduces transaction costs and increases the long-term return.

How do you select one fund over another?

No two funds are created equal and no funds or ETFs are managed in exactly the same way. We analyze the underlying structure of each fund to find the ones that best represent each asset class in a portfolio. Costs are important, however the funds we select are not always the lowest cost funds. Rather, they best cover a particular area of the market.

Do you publish the past performance of your strategies?

As fiduciaries, we adhere to the strictest performance reporting standards. Each client receives a personal quarterly performance report benchmarked to their investment policy. While we do calculate composite performance information on all portfolio strategies, we do not publish this data in the public domain because these composite results have not been verified by an independent third party.

Account Operations & Reports

Is Schwab Institutional the only custodian available to clients?

Schwab Institutional is the institutional investment arm of Charles Schwab & Co. They act as a custodian to most of our clients’ assets, which means they hold securities and cash and facilitate trading activities. Archer Investment Management has selected Schwab Institutional as custodian because of their commitment to client service, low trading cost, and a dedication to operational efficiency. Our management fees are kept low because of the operational efficiency created by having Schwab as a primary custodian.

Is Archer Investment Management affiliated with

Charles Schwab Institutional?

No. Archer Investment Management is not affiliated with Charles Schwab Institutional or their parent company, nor are we compensated by that company in any way through fees, commission, or incentives. In the spirit of full disclosure, our firm is supplied necessary software that allows our in-house portfolio management system to work efficiently and cleanly with Schwab’s back-office operations and trading desks. The same software is available to all investment advisors that custody at Schwab.

Do I have to go to a Schwab office to open an account?

No. There is no reason to visit a Schwab office or to open Schwab accounts yourself. You will be signing Schwab Institutional paperwork that we will send to you. If there is a Schwab office nearby, you may go there to deposit checks rather than mailing money to Schwab or Archer Investment Management for deposit. That would reduce the time it takes to put checks into your account.

Will I have Internet access to my account?

Yes. Free Internet access is available to clients through a special Schwab website 24 hours per day, 7 days per week. The website also is the source for immediate information on account activity and provides you with many reports including year-end tax information.

How often do I receive statements and reports?

Charles Schwab sends monthly statements to all clients for all accounts. These statements show account balances, trades, cash flows, and unrealized gains. Statements are available in paper as well as through email. In addition, Archer Investment Management will send a detailed performance report each quarter that compares your portfolio’s performance to a series of relevant market indexes.

Will I receive reports that will help with tax preparation?

At the end of each year, Charles Schwab will send 1099s to each client that has a taxable account. In addition, a realized gain/loss statement is available on-line from Schwab, as well as from Archer Investment Management.

Is there a cost to terminate the agreement if I am not satisfied

with your services?

No, either party can terminate the Agreement at any time and for any reason, but there is a 30 day waiting period, if necessary, to allow trades to settle or illiquid investments to clear. There are no termination charges. A final invoice will be drafted based on the number of days during the current quarter that the account was under management.

Insurance & Other Matters

Does anyone at Archer Investment Management have

access to my money?

No one at Archer Investment Management has access to the money in your account. We have limited power of attorney to do three things in a client account: 1) trade securities with discretion, 2) request that Schwab send a check to a client directly or to a client’s bank, and 3) be paid a quarterly management fee from the account based on the contract rate. We have no other access or authority.

Are my accounts insured from theft, fraud, errors, omissions

and insolvency?

All accounts are insured on multiple levels. Charles Schwab Institutional insurance coverage is extensive and is explained in a public brochure that is available to all investors. Archer Investment Management also carries Errors and Omissions insurance.

How is my privacy protected?

Each year our clients receive a Privacy Statement that outlines this responsibility in detail. AIM will not release any information to any person who is not directly named on your account unless we have your permission to do so, with the exception of legal and regulatory authorities.

What does it mean to be a Registered Investment Advisor (RIA)?

Archer Investment Management, LLC is a registered advisory firm. All professional investment management companies are required to register with the U.S. Securities and Exchange Commission (SEC) and/or the State(s) in which the firm conducts business activities. That registration is called an ADV, and it is available in two parts. ADV Part I is basic information about the advisory business and ADV Part II explains our services and fees.

How does an RIA differ from a brokerage firm?

RIAs are in the investment management business and we are regulated by the Investment Advisors Act of 1940. In contrast, brokerage firms are primarily in the financial product sales and distribution business and they are regulated by the Securities Act of 1933 as well as other laws. As an RIA under the 1940 Act, we have a higher level of fiduciary responsibility than brokerage firms. We are required by law to work in our clients’ best interest. Our fee is based on assets under management (AUM) rather than the brokerage model that is tied to the sale and distribution of financial products generally for commissions.

What ethical standards does Archer Investment Management

adhere to?

Everyone at Archer Investment Management adheres to the strict Code of Ethics set forth by the CFA Institute.