New Discretionary Fee-Based Account Option

June 15, 20021

Since the fourth quarter of 2018, I have wrestled with the idea of offering a fully discretionary, fee-based account option to my clients.  At that time, the market had dropped over 20% in 3 months with no recession in sight.  It was illogical and I was confident that eventually, it would lead to a great buying opportunity.  However, when the market finally bottomed and started to trend higher again in January of 2019, it took off like a rocket and I physically did not have enough time to call each and every one of you with my recommendations as fast as I would have liked.  I’ve mentioned this before.  I’m not Warren Buffett.  I don’t manage billions of dollars.  However, with over 350 clients and serving over $90 million in brokerage and advisory assets, it’s difficult to contact everyone quickly.  

This became even more clear last year.  After a 30% drop in March, the market snapped back surprisingly quickly and robustly.  After receiving our first technical buy signal in April, I emailed everyone to communicate and asked for your help.  I wrote, “…do not hesitate to call me to discuss your portfolio.  I could use all the help I can get connecting with all of you who are interested in investing while the market is down at it’s current level.”  It certainly helped and I thank all of you who reached out to me at that time.  However, I think there is a better way.

For those clients seeking growth/appreciation for either all or a portion of your account(s), I will now offer a discretionary, fee-based account.  Discretionary meaning you would not have to direct or approve specific buy and/or sell recommendations, allocation changes, overweighting/underweighting, rebalancing, etc..  I become your portfolio manager.  You simply tell me what you want to achieve and I invest your account accordingly to address your goals.  For many of you, this isn’t much different than how we’re working together currently.  However, I would not need to confirm each and every recommendation with you verbally.  Fee-based meaning no commissions.  Puts you and I on the same side of the table.  As your account does better, I do better.  

If interested in pursuing, please contact me to discuss.  I truly believe this a better way to manage accounts seeking growth/appreciation.


Thank you,


Jason M. McKenna, CFP®


McKenna Financial Planning