Questions and Answers

Is this a mutual fund?

• You own individual stocks — this is not a mutual fund
• We do all the work for you. We keep abreast of the top growth stocks in the stock market, then purchase and sell stocks from each portfolio when changes are made — it’s our job to get you in and out.
• Your account remains in your name and is not grouped with those of other investors Your account is totally separate. You own the stocks in your account and can take the shares with you if you so desire.
• You can still call us and but a stock you like, just as you would a regular stockbroker. So you retain the freedom to customize your portfolio to your liking.

How do you make money? By charging commissions or fees (or both)?

• We work on a fee basis, which puts your best interests with our best interests. Clients pay 3% per year for us to manage their stock portfolio (quarterly fee of 0.75% per quarter x the value of the account at the end of the previous quarter). Our job is to grow the account — the higher the value the more money we make.
• DavidSharek.com does not charge its clients commissions. We also do not make money or get perks by sending trades to certain brokers (no kick-backs). Commission brokers make more money the more they trade your account.

What are your fees? How big does my portfolio have to be?

Our Fees and Account Minimums

• Our portfolio management fee is 3% per year, billed as 0.75% of the account value at the beginning of a calander quarter (Jan 1, April 1, July 1, Oct 1).
• The Growth Portfolio is designed for portfolios $100,000 or more.
• The Aggressive Growth Portfolio is designed for portfolios $50,000 or more.

An I locked into a contract to stay, like an annuity?

• No long-Term contract, you can cancel anytime.
• Once a client decides to discontinue our services, the client can either transfer the account to another broker, or request we sell the stocks in the account. If the stocks are sold we can wire transfer the ballance or have a check mailed out three business days after a liquidation request has been made.
• In the event of a client discontinuing our services, the client is refunded the ballance of the managment fee through the end of the quarter.

Is my money protected?

• DavidSharek.com does not keep client accounts in our custody. Accounts are held at one of the brokerage we are associated with, which include Scottrade and Interactive Brokers. DavidSharek.com does not accept payments of any sort from any of the brokerage firms we work with.
• Each account is covered by SIPC for $500,000, of which $100,000 may be cash. Customer accounts at Interactive Brokers are protected up to $30 million (including $1 million in cash). Scottrade has also purchased excess coverage (excess SIPC) from our insurers of $24.5 million (inclusive of $900,000 in cash claims) to pay amounts in excess to those returned in a SIPC claim, subject to an aggregate Scottrade limit of $100,000,000.

Can I view my account online?

• You can view all your portfolios online, anytime through the brokers website your account is held at.

Can I get cash?

• If you are retired and need to withdraw from your account each month, we can have money sent to you monthly or at your discression via check, wire transfer or ACH (Automated Clearing House).
• IRA distribution rules still apply to retirement accounts, and we can have a portion of your distribution be sent to the IRS if you so choose.

Do you manage IRA’s and 401k’s?

DavidSharek.com manages the following accounts:

• Indivudual accounts
• Joint accounts
• Individual retirement accounts (IRAs)
• Roth IRA’s
• SEP IRAs,
• 401k’s from previous jobs (to be rolled over into an IRA).

We do not manage 401ks from your existing job until you either leave the plan, retire, or leave the company. Once this takes place the 401k can be rolled into an IRA and at then we can manage the portfolio.

How do I get my account to you?

All we have to do is transfer the account to one of the brokerage firms we work with and you’re ready to go. Call us at 347.627.0171 or email us at info at davidsharek.com and we’ll get to work.

• We will talk with you to discuss each brokerage firm we work with.
• Once you decide on a broker, we will gather your account information, fill out necessary paperwork, and ship it right to your door.
• Just sign the new account paperwork and mail it directly to the brokerage firm. Allow two to three weeks for the account to be set up.

How do I receive monthly statements emailed from Interactive Brokers?

• Log into Interactive Brokers Account Management
• On the left, click Report Management > Delivery Settings
• In the section Type, next to Monthly Activity Statement check Email Notification with Statement

How do I get my tax forms from Interative Brokers?

• Log into Interactive Brokers Account Management
• On the left, click Report Management > Tax Forms. Here you will find:
  Form 1099 – Displays stocks and bonds sales proceeds, futures gains and losses, interest income, dividends and miscellaneous income. This information is reported to the US Internal Revenue Service for US citizens and residents.
  Gain/Loss Summary Worksheet – Displays stocks and bonds sales proceeds, futures gains and losses, interest income, dividends and miscellaneous income. This information is reported to the US Internal Revenue Service for US citizens and residents.
  Dividend Report – A detailed breakout of dividends earned by tax category.

I have other questions?

Call us direct at 347.627.0171 or email us at info at davidsharek.com.