Q&A with Tom Phillips
OKC-based investment company
reaches $1 billion in client assets
Q: I understand your firm recently hit a big milestone. Can you tell us about that?
A: Last year, T.S. Phillips Investments and related companies exceeded $1 billion in assets for clients who we help oversee. In the financial marketplace today, it’s not unusual to hear of billions of dollars in assets, but it’s a pretty big deal when a smaller local firm hits that level. It’s a tribute to our investment consultants and administrative staff.
Q: How wealthy does one need to be to hire an investment adviser?
A: It depends on the investment adviser. I’ve seen some minimums as high as $250,000, and others have no minimum. Frankly, I encourage my investment consultants to fall into the latter category and not insist on a minimum account size. For those with smaller accounts, it’s never too early to seek the help of a trusted investment adviser.
Q: What are the advantages/disadvantages of flat fee versus percentage payment for advice?
A: The advantage of a flat fee, especially for large accounts, is that it usually is lower than a fee based on asset size. The advantage of a percent of assets fee is that it directly aligns the adviser’s and the client’s interests since it goes up and down along with the account value.
Q: What is the advantage of working with an independent broker dealer?
A: As an independent, we have a relationship with a major financial firm that holds our clients assets. This allows us to offer the safety and most of the products and services of that organization. At the same time, since we are independent, we offer no proprietary products and have the freedom to look at many alternatives as we seek to best serve our clients. In short, we offer all the advantages of a major firm with the close personal service of a smaller firm.
PAULA BURKES, BUSINESS WRITER