Traditional Investment Services

Steve holds various stockbrokerage licenses as well as a general securities supervisor license through the National Association of Securities Dealers (NASD). He started acquiring such licenses in 1986. Similar to a real estate agent affiliating with a real estate brokerage firm, Steve is a registered representative of KMS Financial Services, Inc. which is a Seattle based broker dealer that is a member of the NASD and under the overall regulation of the U.S. Securities and Exchange Commission.

KMS Financial Services, Inc. - in Steve’s very independent opinion - is a low key, high quality, competent regional firm. The small quiet lobby contains a grand piano, art on exhibit, and comfortable chairs. That’s the atmosphere of the company: calm, contemplative, welcoming. The business of KMS is to handle all the paperwork and legal review and similar oversight of Steve’s and other offices. The KMS office is therefore not designed to attract members of the general public. But if you were an existing client, mentioned that you were from out of state and would like to find out how Steve and KMS operate, you might find the president of the firm himself taking a few minutes to have coffee with you. It’s that kind of a company.

Steve bought his first stock in 1966. And he still remembers exactly what he paid for it and what he sold it for. In the intervening years, he’s made and lost money on various stocks and bonds and funds (as well as real estate) and learned a few lessons along the way.

Most of the investments placed through Steve go into mutual funds. Out of the thousands of funds, Steve seeks to recommend those that seem well managed and which offer diversification by spreading investments over a large number of individual stocks, bonds and other securities. Mutual funds also simplify tax reporting and offer low cost retirement accounts, understandable reports and clear accounting.

Of the investments placed through our office a much smaller share are in individual stocks and bonds. Steve’s office is the wrong place to buy initial public offerings, commodities, traded options or most other flashy stuff. Steve feels his approach to stocks is usually conservative to middle ground.. Individual stock shares are typically held for tax reasons or for reasons related to family corporations or employers or for other personal preferences.

For a very few large accounts, Steve has agreed to be an asset manager, taking on more responsibility and charging a few calculated as a percent of assets being managed.. Such asset management services are described in the financial planning section because both types of duties fall under a different licensing and regulatory structure than normal securities business. While Steve is licensed for such services he feels that even for very large accounts, mutual funds should be carefully considered.  See the Intro to Financial Planning.

Note that in investments, as in much of the rest of life, there are few guarantees. For example, past performance does not guarantee future performance - we’ve created a chart of investment returns which partly illustrates that. Yet over relatively long periods of time, investors have generally been rewarded for their risk and self discipline.