Frequently Asked Questions

Q: Why do I need financial planning and help with my investments?

A: Financial planning is actually five different interrelated activities. Investments, retirement plans (such as profit sharing plans or 401k plans), taxes, insurance or risk management and estate planning are included under the financial planning umbrella. Each of these fields are complex enough to be considered a profession in their own right. Each area can be incredibly complex and therefore, we recommend investors seek advice only from private investment managers who specialize in a single field.


Q: Why has the average investor performed so poorly over the long term?

A: There is an entire area of study called “Behavioral Finance” that seeks to understand why the vast majority of people are very poor investors. A few individual investors will have successes, but the bottom line is that our natural tendency in making decisions, is exactly the wrong way to approach investing. Investment management is counterintuitive. We believe that unless you have an in depth knowledge of mathematics, economics, history, market behavior, human behavior and can keep your emotions from affecting your investment decisions, you should seek qualified assistance from an private investment manager who specializes in Advanced Investment Management.


Q: Is my account insured?

A: LPL’s investment account assets are protected up to $100 million. LPL’s SIPC membership provides account protection up to a maximum of $500,000, of which $100,000 may be cash. For an explanatory brochure, please visit www.sipc.org. The account protection applies in the event a SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments. This extensive coverage reflects a strong commitment to serving your investment needs.


Q: Where is your office located?

A: We have offices or meeting space in Johnson City, Bristol and Abingdon. When you schedule an appointment, the address, a map and driving directions will be provided.


Q: How can I contact you?

A: You may contact us by phone 423-282-8840 or 1-800-677-4445 or by email info@gilbert-aam.com.


Q: If I’m interested in learning more about your services, what do I do?

A: Call us and make an initial appointment. During this meeting (typically 2 hours) we learn about your needs and your goals. You have the opportunity to learn about us as people and about our investment management philosophy. If at the end of the meeting, we both feel we are a good match and want to develop the relationship further, a second meeting is set. At the second meeting, you are provided with more information about our investment management system, we answer any questions that may have come up since the first meeting and review a specific investment plan to meet your financial goals. At that point you have a very important decision to make. Think about what you have learned and call us if you decide you would like to take the next step. We are available to answer questions or for additional meetings if you desire, but we do not chase after you and hound you to make a decision. All meetings are complimentary and do not obligate you in any way.


Q: Will my account be diversified?

A: “Diversified” is one of those words that is used so much that it has very little meaning. Your question should be: Will my portfolio be efficiently diversified or inefficiently diversified? The goal of an efficient portfolio is to provide greater return and lower risk over the long term. We will explain how this works during our first meeting


Q: Will my account be specially designed for my situation?

A: All of our portfolios are custom designed and individually managed. This is the reason we have multiple investment representatives and a very large staff. As your needs change or develop, the portfolio will change to meet those needs independently of the other clients’ portfolios.


Q: Can I decide what I want to invest in?

A: Yes you can because ultimately it is your money. However, hiring someone to do a job for you and then doing the job yourself seems like a waste of money.


Q: How do I know if I am qualified to become a client?

A: Due to the unique and highly individualized investment management that Gilbert Advanced Asset Management provides, we choose to accept only a limited number of clients so we can provide the highest quality of service available. We understand that our investment philosophy isn’t appropriate for everyone; therefore, we strive to select only clients whose investment styles complement our philosophy. We require a $100,000 minimum investment and will only consider prospective clients who have a long-term view of investing.


Q: What happens if my private investment manager is sick, on vacation, or leaves the firm?

A: Gilbert Advanced Asset Management utilizes a very rare team approach to investment management. Our clients are not clients of a particular private investment manager; they are clients of the entire firm. If the private investment manager that you last met with is unavailable for any reason, you can speak to or meet with any of our other private investment managers. For this reason, we encourage our clients to get to know all of our private investment managers.


Q: Do you offer IRAs, 401-Ks, and SEPs?

A: Yes, we offer all types of investment accounts. In addition to the ones mentioned above, we also offer both traditional and Roth IRAs, Coverdell IRAs, Simple IRAs, 403(b)s, and 529 Plans.


Q: How are your portfolios designed?

A: Gilbert Advanced Asset Management uses an Investment Committee to make decisions relating to portfolio design and reallocation so one individual isn’t solely responsible for this important aspect of investment management. Extensive and rigorous research goes into the design of each of our portfolios, which are continually monitored for needed changes.


Q: Who is LPL Financial?

A: LPL is the leading independent broker/dealer in the country with assets under management of 100 billion. LPL is the company that provides us with access to the financial markets, some types of research and various other support functions. Independence is important because the financial services industry is plagued with potential conflicts of interest. When an private investment manager is not independent, even if they are honest and well meaning, the compensation framework they have to work under makes objective advice difficult to provide.


Q: Can I take money from my IRA before I am 59 years old without penalty?

A: Yes you can under certain circumstances. The IRS has defined a set of rules for early withdrawals from an IRA that are too complex to discuss here. You should seek the advice of a qualified financial or tax advisor about your specific situation. Be very careful in this area, the penalties can be severe.


Q: Does your firm provide tax advice?

A: We have chosen to specialize in investment management and refer our clients to other professionals who also specialize in their area. We feel this approach provides the highest quality of service to our clients in all areas.


Q: You are a small, local firm. I think that I would feel safer with a big, national company.

A: As a local company, we have the advantage of knowing our clients on a one-to-one basis. We are associated with a very large company called Linsco/Private Ledger(LPL), which you have probably never heard of. LPL only works with professional, independent investment representatives like the private investment managers at Gilbert Advanced Asset Management. So, you have the best of both worlds, a personal relationship supported by the leading independent broker/dealer in the country.

Q: How can I trust you when so many investment firms are being sued by their clients and prosecuted for criminal behavior?

A: You can start by talking to our current clients about their experience with us. Then, talk to us about our values and our philosophy. Get all your questions answered before making any decisions. Trust takes time to develop. We’re in no hurry.