Q: What is Capital Ideas' role as a money manager?

A: Capital Ideas assists it's clients to determine their investment objectives and an asset allocation appropriate for the attainment of those goals. After this the firm establishes a portfolio and provides ongoing continuous monitoring and necessary adjustments to that portfolio.
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Q: What is the minimum account size?

A: For most accounts, the minimum investment to begin your portfolio is $500,000, although in certain instances the minimum investment may be as low as $100,000.
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Q: What do I need to do in order to begin my account with Capital Ideas?

A: Contact Capital Ideas. We will set up an appointment to discuss your situation and investment needs.
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Q: Where will my account be held?

A: Capital Ideas will not take physical possession of your securities. All of the securities holdings within your portfolio will need to be traded through a registered brokerage house. If you have a stockbroker, Capital Ideas can direct all trades through him or her and your assets will remain in the custody of that brokerage house. If you need to retain a broker, Capital Ideas has an established relationship with First Clearing Corporation (a subsidiary of Wachovia National Bank) through an affiliation with a registered securities broker. As a service to our clients Capital Ideas personal will be happy to assist you with the transfer of your account to this affiliated brokerage firm.
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Q: What are the advantages of using a money manager over a mutual fund?

A: An individually managed account with a money manager such as Capital Ideas is often superior to a mutual fund for several reasons. For instance:

There Is No Forced Redemption of Your Holdings
During market declines, many mutual funds are forced to raise cash for customers wishing to redeem their shares. Being forced to sell when the general market is down, a fund is most likely taking losses. In addition, the lack of cash within a fund as a result of these redemptions prevents mutual fund managers from purchasing quality investments at lower prices.
A Capital Ideas managed portfolio is yours and yours alone. You are unaffected by other investor's bad timing decisions. Many times, instead of selling, Capital Ideas can increase your market share by purchasing quality investments when prices are less expensive.

Your Account Can Be Tax Managed
When you buy shares of a mutual fund, you also purchase any existing tax liability in that fund. For example, if you decided to buy shares of a mutual fund in November, you would be responsible for paying capital gains tax on the fund's entire year's worth of gains (from January to December), not just your personal gains realized since you joined the fund in November.
A personally managed account with Capital Ideas offers you several tax-related advantages over mutual funds. First, you pay taxes only on those gains realized in your personal portfolio. The investment activity of other Capital Ideas clients will not affect your tax liabilities. Secondly, Capital Ideas strives to reduce your capital gains taxes by selling issues that will produce offsetting capital losses. Because you may maintain direct contact with your account manager tax oriented transactions can be timed to coincide with other taxable transactions taking place outside of your Capital Ideas account, thus maximizing your overall tax planning strategy.

Service
In a mutual fund, you are typically one investor out of thousands. "Service" is normally nothing more than a statement in the mail. Capital Ideas offers much more! We provide you with:

Q: What if I do not wish to hold certain types of stocks (e.g., tobacco or gaming)?

A: Not a problem. Capital Ideas works hard at being one of the most service-oriented money management firms in the industry. We can employ investment restrictions in your portfolio, which will prevent investing in securities you find socially undesirable.
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Q: If I need to withdraw money from my Capital Ideas account, how do I go about it?

A: Whenever you want to withdraw funds from your account, contact your broker who will process your request and notify Capital Ideas of the change. If you need frequent or regular withdrawals, your CI investment team can set up a systematic withdrawal system that will automatically disburse the necessary funds when you need them.
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Q: How much do you charge?

Capital Ideas Inc. charges a management fee at the rates listed above. The fee is accessed retroactively and paid on a quarterly schedule.
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