Frequently Asked Questions Regarding Our Bond Services
Why choose the Scarsdale Investment Group, Ltd. (Scarsdale), an independent Registered Investment Advisor, to handle my bond investments rather than a large brokerage firm?
||We represent you in the purchase and sale of bonds. The broker represents and is compensated by the brokerage house.
||We provide expert services. Scarsdale will work with you to help you achieve your objectives. Hildy and Stan are nationally recognized bond experts and authors of five bond books; three published by Bloomberg Press, one by McGraw-Hill and one by Carroll and Graf.*
||We will provide you with an education about bonds. We will explain the advantages and disadvantages of each proposed bond purchase. We will help you understand the risks and the rewards of each bond investment.
||We do not do discretionary work. That means that we work closely with you in selecting a portfolio that meets your needs and objectives. You do not give up control of your money. You will be consulted on each individual bond purchase and sale. You must orally (or by e-mail) consent before a bond is bought or sold for your account.
Are there any other services that Scarsdale provides that might distinguish it from a large brokerage house?
||When only one syndicate controls a "negotiated issue," we can obtain bonds while non-participating brokers cannot. The syndicate sale is restricted to the syndicate's own customers, and other brokers are unable to participate in the initial offering.
||Since we are unaffiliated with any brokerage firm, we can put in bids with a number of different syndicates in the competitive new issue market, making us more likely to obtain bonds for clients.
How do you define your objectives and decide what kind of bond portfolio is best for you?
We help you define and clarify your objectives by evaluating various bond strategies, including the custom design of a bond ladder or barbell.
We use National Financial Services, a subsidiary of Fidelity Investments, to custody our client's securities.
Who has custody of your bonds?
Do I send you the money to purchase bonds?
No. We do not handle any client cash or securities. You put cash into your Fidelity account through check deposit, wire transfer or electronic funds transfer.
How are bonds purchased?
We have established a large network of brokers. They provide us with bonds of the quality we request at competitive prices, in addition to the bonds offered at Fidelity. If bonds are purchased away from Fidelity, they are then electronically transferred to your account at Fidelity against payment.
How do I keep track of my bonds?
You will receive statements and confirmations from Fidelity. When requested, we can provide you with summaries of your portfolio and interest payments. You can access your portfolio on-line at Fidelity.com.
*Such personal service, publications and/or recognition is no guarantee that any client will experience a certain level of results if Scarsdale is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Scarsdale.
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