Questions
The questions families ask us most, with short answers.
Working with us
What does Cornerstone Wealth Partners do?
Cornerstone Wealth Partners is an independent, SEC-registered investment adviser founded in 2008. We have offices in Okemos, Grand Rapids and Wyoming, Michigan, and in Peachtree City, Georgia. Your advisor manages your investments, builds a family strategy with you (your plan for retirement, savings, taxes and what you leave behind), and meets with you regularly to review both.
How do I get started with Cornerstone?
You send us your info through our contact form, and an advisor near you reaches out to set up a discovery meeting about your family, your goals and what you have today. Next we walk through your portfolio analysis (what you own and what you pay) at an analysis meeting. At a strategy meeting we show you the gaps in your strategy and what we'd change. If you decide to work with us, onboarding is the first time you sign anything, and regular meetings with your advisor start from there.
How often will we meet?
At least once a year, and as often as you ask. The first few months are busier while we build your family strategy (your plan for retirement, taxes and what you leave behind) and set up your portfolio. We also add meetings when life changes, like retiring, leaving a job, moving or getting an inheritance.
Do you work with people outside Michigan?
Yes. We have three offices in Michigan and one in Peachtree City, Georgia, and you can meet with us at an office or by video from anywhere. We can only take on clients in states where we're registered or exempt from registration, so tell us where you live when you send your info.
Can you help my parents?
Yes. Your parents can send us their info and go through the same steps you would, starting with a discovery meeting with an advisor. We build their family strategy with them (their plan for retirement income, taxes and what they leave behind), and their accounts stay in their own names.
Can I stop working with you anytime?
Yes. You can end your investment management agreement without penalty within the first 5 business days, and after that with 30 days' written notice. Any management fee you prepaid for the quarter is refunded pro rata, and your accounts stay in your name at the custodian either way.
Cost and how we're paid
How much does Cornerstone charge?
Our fee for managing your investments starts at 1.25% a year and scales down to 0.50%, depending on how much we manage for you. It's collected quarterly in advance, one-fourth of the annual rate each quarter, and it's listed on your quarterly statement. Ongoing financial consulting is a flat annual fee between $100 and $10,000, depending on the level and scope of the work.
Is there a minimum to work with you?
No. There's no minimum net worth or minimum portfolio size for our services. If we recommend one of Matson Money's programs, Matson requires $10,000, and 529 college savings plans can set their own minimums.
Are you a fiduciary?
Yes. When we act as your investment adviser, we have to act in your best interest and not put our interests ahead of yours, and we don't earn commissions on products. Our fee is a percentage of the assets we manage, so we have a reason to want you to invest more with us. Our Form CRS lists that conflict along with the others.
Do you sell annuities or insurance?
Cornerstone doesn't sell insurance or annuities, and our investment advice is generally limited to mutual funds, ETFs and 529 college savings plans. Two of our employees are also licensed insurance agents, and if one of them arranges insurance for you, they're paid a commission on it. That's a conflict of interest, and you never have to buy insurance through anyone we recommend.
Do I pay anything besides your fee?
Yes, the mutual funds and ETFs in your portfolio have their own expense ratios, and the custodian can charge transaction fees when trades are made. Those costs are separate from our fee, and Cornerstone doesn't get any part of them. You pay fees and costs whether your investments go up or down, and they reduce what you make over time.
How we invest
How do you invest?
We call it academic investing (evidence-based investing), which means we build portfolios on market research instead of forecasts. We spread your money across thousands of companies around the world, plus bonds, so no single company or country decides how you do. Small companies and value companies have tended to do better over long periods of time, so we own more of them than an index fund does. Past performance doesn't guarantee future results.
Do you try to time the market?
No. Prices move on news nobody can know ahead of time, so we don't try to guess what's next. We review our models about once a quarter and rebalance as needed, and we don't change them based on what the economy or the market is doing.
What is a portfolio analysis?
A portfolio analysis is our review of the investments you own today. It shows your holdings, how concentrated they are, and what you pay in fund and advisor fees. We go through it with you in the analysis meeting, before you've signed anything with us.
Where is my money held?
In accounts in your name at an independent custodian, usually Altruist. We manage the investments, but we never take possession of your money. You get statements straight from the custodian at least every quarter, and you can see your accounts online any time.
What happens if Cornerstone goes out of business?
Your accounts would stay where they are, in your name at an independent custodian (usually Altruist). Cornerstone manages the investments, but we never take possession of your money or securities. Our Form ADV also says we have no financial commitment that impairs our ability to serve clients, and the firm has never been through a bankruptcy.
Retirement and planning
What is a family strategy?
Family strategy is our name for your financial plan. It covers the decisions that guide your money, like when to retire, how much to save, where retirement income comes from, taxes, giving and what you leave to family. We build it with you and review it at each meeting.
Can you tell me if I can afford to retire?
Yes, figuring out when you can retire is one of the main questions a family strategy (your plan for retirement, savings, taxes and what you leave behind) answers. We look at when you want to retire, how much to save until then, and where your retirement income will come from, like Social Security and your savings. The plan rests on assumptions about inflation, interest rates and markets, so we can't promise any result.
Do I have to move my 401(k) to work with you?
No. You're never required to roll over a 401(k) or move an IRA into an account we manage. We look at everything you have, including the 401(k) at your current job, and talk through what makes sense to move and what to leave where it is.
What are my options for an old 401(k)?
You usually have four options for an old 401(k). You can leave it in the old plan if allowed, move it to your new employer's plan, roll it to an IRA, or cash it out. Each one has tradeoffs in cost, investment choices and taxes, and cashing out can mean extra tax depending on your age. We encourage you to check with your CPA before you move anything. If you roll it into an IRA we manage, we earn our advisory fee on that money, and that's a conflict of interest.
Can you help us save for our kids' college?
Yes. We talk through the options, including 529 college savings plans, Education Savings Accounts and UTMA accounts, and help with the paperwork if you open one. If you have us monitor a 529 plan, we don't charge a fee on that money.
Can you help my company with its 401(k) plan?
Yes. We work with workplace retirement plans, including 401(k), 403(b) and SIMPLE IRA plans. We help the business pick the plan's investments, keep an eye on them over time, and teach employees how the plan works.
This page is educational and isn't personalized investment, tax, or legal advice. Fees, services, and conflicts of interest are described in full in our Form CRS and Form ADV Part 2A. Past performance does not guarantee future results. All investing involves risk, including loss of principal.