Easy to understand fees and investment performances
Q: UAK Diversified is a new startup investment advisory firm. How do I know my money will be safe?
A: UAK Diversified LLC is a registered investment advisor. UAK Diversified’s clients have investment accounts with Charles Schwab. Clients authorize UAK Diversified to have “Limited Power of Attorney” rights. This only allows UAK Diversified to buy/sell financial securities and assess an agreed-upon fee on a quarterly basis. UAK Diversified cannot do anything else without the client’s explicit written and signed authorization. UAK Diversified has chosen Schwab for its reputation and excellent client service that exceeds most other larger established companies. Currently, Schwab is 13th largest bank in the United States. Also, UAK Diversified is properly registered with the state of Minnesota and the firm's public recorded can be found in
Investment Adviser Public Disclosure website of SEC and FINRA - Financial Industry Regulatory Authority .
Search CRD#: 300506 under https://www.adviserinfo.sec.gov/IAPD/default.aspx
Q: What if the co-founders, Sarah and Ujae Kang, decide to close the business? Or what if clients cannot get in touch with UAK Diversified employees after several attempts?
A: Schwab is the custodian of UAK Diversified. This means clients’ investment assets are with Schwab, not UAK. Clients give UAK Diversified authority to buy and sell investment securities on their behalf and Schwab will release agreed-upon fees for providing this service. For all other services, UAK Diversified will be a liaison between Schwab and the clients, though nothing else can be done without written and signed permission from the clients. If UAK Diversified were to dissolve, clients would be given options to seek alternative advisors. In the interim, Schwab would continue to provide investment advice and management through a Centralized Investment Development Team. Schwab also has branch offices in all of the major US cities, 4 in twin cities, where clients could go to meet and select a new advisor or get any service help. Should a client find a new advisor outside of Schwab, Schwab will do its best to make the transition as smooth as possible. Securities can be transferred in kind to the new brokerage firm.
Q: Why did the founders, Ujae and Sarah Kang, decide to get into the investment advisory business in their early 40s, especially when they were already financially secure with a stable income?
A: We, Sarah and Ujae Kang, have been managing and advising investment portfolios together for over 10 years for several clients. Ujae’s main job has been working as an investment actuary for an insurance company and Sarah’s main job has been homeschooling 4 boys. They lived comfortably. The majority of those years, they weren’t paid for the investment management and advice services they provided, since it wasn’t worth the worth the cost of registering and hiring a legal firm to satisfy regulatory requirements. (Anyone who charges a fee for financial advice needs to be registered with the government). However, we felt a growing need for our services, so we decided to begin charging modest fees so that we can expand our number of clients. Nothing is more satisfying than serving and working for people who trust us with their wealth and their family’s financial security.
Q: Why did the founders chose Schwab to be the custodian of the clients’ investment portfolios?
A: Schwab is the 3rd largest provider of index mutual funds, the 5th largest provider of exchange traded funds, and the 7th largest provider of money market funds. Schwab is also a clear favorite of wealth management firms. Nearly 3 out of 4 wealth management firms with over $1 Billion aggregate assets under management have custody with Schwab. Unlike many of our competitors which put client's money in mutual funds that charge around 1%~2% annual fees, we don't offer mutual funds. 90% of mutual funds don't outperform respective market indexes (S&P 500 index, Aggregate Bond index, Russell 2000 small company index, etc). Investments that UAK Diversified recommends to our clients are all cost efficient exchange traded funds or index funds that tightly perform around the market indexes. And the total product fee is only about 0.1% to 0.3%.
We can offer our clients “Institutional” or “Advisor” share class mutual funds instead of A, B, and C share class mutual funds (which have large embedded fees to compensate the middleman and financial planners every year). Clients who really want to invest in actively managed mutual fund will be able to invest in “Institutional” or “Advisor” class shares to keep the lowest possible fees (no sales load whatsoever). Further, we offer complementary full financial planning with robust Monte Carlo simulation to best assess the highest probability strategies for the investors/clients’ retirement wealth building success. Legally, UAK Diversified is not allowed to predict the future about investment performances. But Ujae, as co-founder, can say this: that he can confidently tell his sons when they grow up and come to work with him, which he hopes and prays for, that he did his best to provide the best products to his clients and that he did it in such a way that more wealth could belong to the clients' portfolio.