Frequently Asked Questions

Why do you call your company Broken Investing?

Please see our "What's in the Name?" page.

How do I know if Broken Investing is right for me?

Broken Investing is for a special kind of investor who is looking for help in generating higher returns AND is willing to bear higher risk for those rewards. Our portfolio management service should be seen as an ADDITION to typical investment and savings strategies, rather than as a substitute. Our services should not replace financial planning, investing for retirement, paying down debt, long-term savings plans, or educational savings plans. No one wants to lose money. But one question you can ask yourself is, "Would losing the money I am entrusting to Broken Investing cause me to lose sleep at night, create great financial distress for my household, or significantly and negatively alter my life?" If the answer is "Yes," then we are not suitable for you.

If, on the other hand, you are in a situation where you would like a portion of your money to go toward higher reward investing strategies that include higher risk, and you believe you can adequately tolerate high volatility and the possibility of loss, then you should strongly consider trying us out at least for the trial period.

What is the minimum investment required?

The minimum investment is $10,000. This is the minimum required for us to fully implement our portfolio trading strategies. Clients are encouraged to maintain their investment for a minimum of 180 days to allow us to fully implement our strategy. While withdrawals are permitted at any time, we request at least 10 business days’ notice prior to a withdrawal. Frequent or early withdrawals may limit the effectiveness of the investment strategy. Clients agree to maintain a minimum account balance of $10,000. Partial withdrawals that would bring the balance below this threshold may require full account closure at our discretion. Our strategy requires that the account remain fully invested throughout the investment period. Withdrawals may require liquidation of positions at unfavorable prices and may adversely impact account performance.

How big is your firm?

The managing member and owner is the only full-time employee of Broken Investing, LLC. Feel free to email us at brokeninvesting@gmail.com for biographical information on our managing member and owner. Our firm will stay small in terms of employees and clients as we actively manage accounts on a daily basis. We offer a high-touch experience that does not get outsourced.

To use a metaphor, there are instruments, such as guitars, that are made in factories that produce hundreds of guitars a day. There are also custom guitar builders (luthiers), who by themselves make 20 guitars a year in a shop according to their custom specifications and techniques. These are some of the finest instruments in the world. We seek to be a custom, personal luthier of portfolio management. We will not scale our services in a manner that will cause us to reduce our attention, customization, and careful portfolio management for our clients.

Why do I have to apply?

Suitability is one of the most important concepts for serving clients as an investment advisor. Suitability refers to whether a particular approach best suits the clients’ financial situation and goals. We have a fiduciary responsibility to our clients, meaning that we always put their needs first and always do what is best for them. Broken Investing is only suitable for clients seeking for a portion of their total investment funds to be allocated to high-risk, high-reward strategies. We require applications so that we can best determine whether we are a suitable solution for a potential client. The application process also allows us to keep our client base extremely small so that we can provide top-notch services and outcomes.

Do you really offer your services for free for the first six months?

Yes! Sort of. We believe in our methods, and we want to encourage you to try us out without worrying about fees. We think our strategies will prove themselves and that you will choose to become a long-term client after the trial period. Technically, the trial period is two quarters, not six months. Quarterly fees are charged on or shortly after January 1, April 1, July 1, and October 1. The two-quarter trial period is likely to be less than six months, depending upon when your account opens.

For example, if you were to start with us on August 1, the next quarterly fee assessment would take place on or about October 1. The quarterly fee assessment after that would take place on or about January 1. These two fees would be waived (October 1 and January 1). Fees would start to be calculated with the January 1 quarter, and your first fees would be charged on April 1. In this example, the trial period was technically 5 months (August 1-January 1) before fees started to be assessed and billed on April 1.

In short, we will waive fees for the first two quarters, but that trial period may be less than 6 months depending upon when your account begins.

What if I want to close my account after the two-quarter trial period?

If you decide not to continue with us after the trial period, we want closing your account to be hassle-free. You will incur any gains or losses during the trial period. For example, if you invest $10,000 and, after the trial period, you have $11,000 in your account, the entire sum is yours to withdraw with no management fees charged when you close your account. If you invest $10,000 and, after the trial period, you have $9,000 in your account, you will bear the losses and will not be reimbursed for losses incurred. We believe you will want to stay with us after you see our strategies employed for the trial period, but we promise to be helpful if you decide to close your account.

Do you really waive fees for any quarter that does not result in a net gain?

Yes! We believe in our methods, and we want to waive fees when our strategy is not producing gains. We think our strategies will prove themselves and that you will choose to become a long-term client who trusts us. It is important to be clear that this fee waiver is a courtesy and at our sole discretion. This waiver does not constitute a performance-based fee arrangement. 

What if I want to withdraw funds?

Investing with us should not be treated as a checking account or savings account. Our strategy requires that the account remain fully invested throughout the investment period. Withdrawals may require liquidation of positions at unfavorable prices and may adversely impact account performance. Clients are encouraged to maintain their investment for a minimum of 180 days to allow us to fully implement our strategy. While withdrawals are permitted at any time, we request at least 10 business days’ notice prior to a withdrawal. Frequent or early withdrawals may limit the effectiveness of the investment strategy. Clients agree to maintain a minimum account balance of $10,000. Partial withdrawals that would bring the balance below this threshold may require full account closure at our discretion.