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Client relationships with Heron Capital Management, Inc., start with a series of conversations. We want to understand your financial goals, previous investment experience, tolerance for risk, and any special issues regarding your personal situation. You can contact us initially by telephone - (800) 99-HERON, by E-mail ClientContact@HeronCapital.com , by filling out our Registration Form, or by mailing in our Questionnaire (Acrobat Reader needed). If you have current stock, bond or mutual fund investments, we will perform a complimentary analysis. Typically, we are reviewing the level of diversification, particularly whether a portfolio is overly concentrated in a single stock or industry group and the level of risk.Many of our clients have wealth concentrated in employee stock option positions. We develop strategies to help our clients reduce the risk of these positions. Please read our articles Protect the Value of Your Stock Options , Employee Stock Option: Protect your Paper Profits and Questions and Answers on Managing Employee Stock Options. If you decide to engage Heron Capital Management, Inc., as your investment advisor, we will prepare the documents to establish your account. Your assets can be in any combination of individual, joint, corporate, trust, UGMA/UGTA, Regular, Rollover and Roth IRA. Your assets will be transfered to Fidelity Investments, our clearing broker and custodian. Fidelity provides execution services in domestic and international services including stocks, bonds, options and mutual funds (most without transaction fees or sales charges.) Fidelity provides monthly statements and confirms of all activity in client's accounts, as well as year end summary and tax forms. Clients can review their accounts 24/7 through Fidelity's web-site. Each account receives a total of $100 million in coverage (SIPC and supplemental) against the unlikely event that Fidelity could not meet its financial obligations. We will also send you our Investment Advisor Agreement. This Agreement, which can be canceled by you at any time, establishes the account objectives, rights and responsibilities of both parties. This Agreement gives our firm Limited Trading Authorization over your accounts which means that we can make investment decisions on your behalf but are not authorized to remove any assets or cash from your account. Our Advisory Fee is deducted automatically from your account at the end of each quarter. As often as circumstances dictate, we will speak with you to make sure that your portfolio investments remained aligned with your life situation. Employment changes, major purchases such as property, retirement, illness or divorce are events which typically require reassessment of your portfolio's strategy. We typically take profits on any position which grows to more than 10% of a portfolio (cut back by half). In January, we rebalance clients' portoflios back to our target sector allocations. We take most tax losses in September, with last minute transactions in December. Our goal is to match realized capital gains with losses, to defer taxes as long as practical. Our turnover averages 20%/year which means that our clients rarely owe gains on their taxable accounts for the first 5 years of the relationship. |